The Minister for Housing and Local Government (Grant Shapps)
I am today publishing a policy paper which sets out the Government’s plans to reform the social housing system. These changes will provide greater freedoms for local authorities, make better use of resources, promote fairness, and ensure that support is focused on the most vulnerable people in society.
The case for reform is strong. Our social housing is an enormously valuable national asset, providing essential support for millions of families. However, the current social housing system is failing the people it was designed to help. There are nearly 1.8 million households on social housing waiting lists—many of whom have little chance of ever receiving a social tenancy. In far too many cases the allocation of a social home leads not to independence and self-sufficiency, but appears instead to reduce incentives to work and to leave people trapped in poverty.
Social landlords provide lifetime tenancies as the default option—so that households continue to occupy a social home and to pay low rents, even if they no longer need this support. This cannot be right when so many other households in need are unable to access social housing. It is also not sensible that decisions on the types of tenancy to be awarded should be rigidly set at national level: these are decisions with local consequences which should be taken locally.
Currently, people owed the main homelessness duty can effectively insist on being offered social housing, whether they need it or not, taking around a fifth of new social lettings. This significantly restricts the number of social homes that could be made available to others in need on the housing waiting list.
We have already announced that—from April 2011—we will introduce a new affordable rent model for housing associations to offer to new tenants on a flexible tenancy and at a rent of up to 80% of local market rents. I can now inform the House that I intend to introduce a new power for local authorities to offer fixed-term, “flexible” tenancies where they consider it is appropriate when letting social housing. This will be in addition to, rather than replacing, the power to grant lifetime tenancies. With these new powers, and with a more flexible approach to regulation of both local authorities and housing associations, social landlords will be able to provide tenancies with a range of fixed periods that take account of the needs of individual tenants and the needs of the local community, and that enable the efficient management of their stock.
These reforms will only affect new tenancies. I will ensure that the security and rights of existing social tenants continue to be protected and respected. Important rights for new flexible tenants will be protected in legislation, and through new provisions to regulate social landlords through a “tenancy standard”, on which we are seeking views.
On succession rights, my intention is that all new secure and flexible tenancies will include a right to one succession for spouses and partners, but I will provide all social landlords with the flexibility to grant whatever additional succession rights they choose. No changes will be made to the succession rights of existing tenants.
Local authorities will regain the freedom to decide who should qualify to be considered for social housing and go on to their waiting list. Government will retain a role in determining who should have priority, to ensure that social housing continues to be available for those in greatest need.
We will also make it easier for social landlords to help existing tenants, previously trapped in unsuitable housing but unable to move because they lack sufficient priority within the allocations scheme. We propose to enable tenants who are not in housing need to transfer from one affordable home to another outside the allocations system. This should make it possible for more moves to take place.
Local authorities will also be able to discharge fully the main homelessness duty by arranging an offer of suitable accommodation in the private rented sector, without requiring the applicant’s agreement. We will provide protection: we will ensure that the private rented tenancies offered must be for a minimum fixed-term of 12 months; and that, if the person becomes homeless again through no fault of their own within two years of accepting a private sector offer, the homelessness duty will apply again.
My intention is to introduce the necessary legislation to deliver these reforms in the forthcoming localism Bill.
The policy paper which I am issuing today provides details of these changes and sets them in the context of the wider reforms to social housing which were announced in the spending review—to reform the way council housing is financed and to bring empty homes back into use as affordable housing—as well as our plans to provide for greater housing mobility and to change the way social housing is regulated. The paper makes clear that we are seeking views on the content of a tenancy standard; on the case for further reforms to social housing allocations; and on the need for further reforms to address overcrowding. We are also inviting local authorities and housing associations to comment on how they would expect to use the new freedoms and flexibilities. Copies of the consultation document have been placed in the Library of the House.