Tenancy strategy
1. Introduction
This Strategy covers our obligations under the Localism Act 2011 to produce a Tenancy Strategy. It sets out the broad objectives that all Registered Providers of social rented housing in Leicester should have a regard to when formulating their own Tenancy Policies.
The role of a Tenancy Strategy, as defined under the Localism Act 2011 is to set out:
- The kinds of tenures and tenancies the Council and Registered Providers should grant.
- The circumstances in which social landlords should grant a tenancy of a particular kind.
- The length of any fixed term tenancies.
- The circumstances in which a further tenancy should be granted when an existing fixed term tenancy comes up for review
All Registered Providers need to have developed a Tenancy Policy before they can implement fixed term tenancies. This Tenancy Strategy will help support and assist in developing such policies or updating any existing policies.
2. Vision, objectives and strategy aims
The purpose of the Tenancy Strategy is to promote good quality, well managed and affordable social rented homes within the city of Leicester. Also, to make sure that we are up to date in providing clear and concise guidance for all registered providers across the city.
This vision is at the heart of the Council’s Housing aim to provide a decent home within the reach of every citizen of Leicester.
We want to ensure that the affordable housing provided meets the identified housing needs of the local area, which addresses the local issues around affordability. We want to be able to set out the expectations for our existing and prospective tenants in respect of their tenure. We believe in creating sustainable, mixed and balanced communities across Leicester.
Registered Providers are expected to demonstrate how their lettings:
- make the best use of available housing
- are compatible with the purpose of the housing
- contribute to the local authority’s strategic housing function and create sustainable communities
- meets housing needs, including those households that require adapted or wheelchair accessible properties.
The Council considers that prospective tenants should have fair access to the available social housing in the city and not be confused by various landlords offering different tenancies or terms. We therefore expect that all Registered Providers engage with the Council to ensure their policies are in line with the principles set out in this Strategy.
The Localism Act 2011 requires all local authorities across the country to have regard to their Housing Allocation Scheme and Homelessness & Rough Sleeping Strategy in developing their Tenancy Strategy. Please refer to the appropriate headings listed below to see how we have considered them for this Strategy.
3. Local context - Housing stock, Population, Housing Register and Allocations
Council Housing in Leicester
From the 2021 census it was established that Leicester’s population was 368,600, this was a 11.8% increase from the previous census in 2001. Leicester is one of the fastest growing cities in England and remains as the largest city, by local authority footprint, in the East Midlands, and the 8th largest in England. The overall structure of Leicester’s population has not changed considerably, and it is still a very young city.
Leicester City Council has a stock of just over 19,000 homes let at social rent (31 March 2023). There are more than forty registered social housing providers operating in Leicester with a combined social rented housing stock of around 11,000.
Leicester is an attractive and a popular place to live in. During 2022 – 2023, properties in Leicester had an overall average sale price of £275,033. The majority of property sales in Leicester during the last year were semi-detached properties, selling for an average price of £272,960. Terraced properties sold for an average of £221,461, with detached properties fetching an average of £415,640. Overall, sold prices in Leicester over the last year were up 5% on the previous year and 12% up on the 2020 peak of £246,138 (source RightMove - May 2023)The Good Growth for Cities Index report (published by Demos and PwC) puts Leicester at 14 out of 50 UK cities, which is compiled and assessed using 12 economic wellbeing indicators. The cities are assessed on safety, income and income distribution, health, work-life balance, environment, transport, jobs, high street and shops, housing, skills and new businesses. Leicester ranked above Nottingham, Derby and Lincoln in the East Midlands and above Manchester, Liverpool, Birmingham and Newcastle elsewhere in the UK.
At the start of 2023/24 the Council owns:
- 9,497 houses
- 5,561 flats
- 1,011 maisonettes
- 2,759 bungalows
- 413 sheltered accommodation units
- 171 bedsits
Location of these properties
In the west area of the city (Beaumont Leys, Mowmacre and New Parks), we manage 6,492 council homes, 113 HomeCome properties and 254 leasehold properties.
In the south of the city (Eyres Monsell and Saffron), we manage 6,212 council homes, 49 HomeCome properties and 171 leasehold properties.
In the east area of the city (Centre, Humberstone and Rowlatts Hill), we manage 6,708 council homes, 73 HomeCome properties and 1,277 leasehold properties.
Registered Providers housing in Leicester: (2022) - cost rental
- General needs = 8,984
- Supporting Housing = 987
- Housing for older people = 919
- Low-cost Ownership = 561
- Total = 11,451
Housing need
An assessment of our housing need found that up to 2031, Leicester requires 1,692 new homes per year (33, 840 over the period 2011 to 2031). Of these, it was estimated that 786 should be new affordable dwellings per year. Due to funding restrictions and a lack of available land, we have not been able to meet this affordable housing target over the last 5 years. Leicester City Council, in partnership with Registered Providers, delivered 366 new affordable homes last year (2021-22).
Affordable new homes delivered
- 2018/19 = 224
- 2019/20 = 340
- 2020/21 = 137
- 2021/22 = 366
- 2022/23 = 73
1,114 new affordable homes have been delivered during the past 4 years, against the Manifesto Target of 1,500 homes.
However, measures are being developed to address this shortfall. In November 2019, the Council approved the addition of £70m for the purchase of properties and the extension of the Council’s new-build programme; the 2021/22 budget increased this to £100m. An additional £100m was approved in the 2022/23 Capital Programme to enable the momentum of house building to be maintained, with further amounts expected to be added as part of future years’ programmes.
The housing market plays a significant role in affordability. A shortage of housing is likely to lead to price rises and impact on households’ ability to access housing. A lack of affordable housing can lead to households becoming overcrowded, living in unsuitable accommodation, which is likely to increase the risk of homelessness.
In 2022 / 23 we let 679 council homes to new tenants through the housing register.
Housing Register waiting list
2022 - 2023
- 1 Bed = 1,595
- 2 Bed = 1,750
- 3+Bed = 578
- Total waiting = 5,101
2021 - 2022
- 1 Bed = 1707
- 2 Bed = 1,738
- 3+Bed = 593
- Total waiting 5,149
2020 - 2021
- 1 Bed = 1859
- 2 Bed = 1,829
- 3+Bed = 613
- Total waiting 5,357
4. Tenure and Tenancy Types
When issuing tenancies, it is essential that all tenants are informed of the type of tenancy they will be offered at the point of offer. This should also be clearly stated in their tenancy agreement, with any specified rights to the type of tenancy.
A range of tenancy types are available (below is a list of the typical types of tenancies which are issued by local authorities and Registered Providers:
- Secure ‘lifetime’ tenancies (issued by local authorities.
- Secure tenancies with a fixed term (issued by local authorities).
- Assured ‘lifetime’ tenancies (issued by Registered Providers).
- Fixed term assured shorthold tenancies (issued by local authorities and Registered Providers).
- Introductory tenancy (local authority) or Starter / Probationary tenancies (Registered Providers) are a type of trial testing tenancy. These are issued to new tenants of social housing and if the social housing landlord has a policy of using them. These tenancies have an introductory period of 12 months, which can be extended by another 6 months (totalling 18 months). Introductory tenancies have fewer rights than secure tenancies and were designed to enable social landlords to end these if the tenant breached conditions of their tenancy during their first year of being a tenant. If tenants do not breach the terms of their tenancy conditions, the tenancy becomes a full secure tenancy for council tenants or a fixed term tenant for Registered Providers.
Fixed Term Tenancy
When a prospective tenant accepts an offer of a fixed term tenancy, the Registered Provider or other affordable housing landlord must advise them of the length of the tenancy and under what circumstances the tenancy may be extended or terminated, including a list of housing options.
Where a Registered Provider or other affordable housing provider chooses to offer a fixed term tenancy a minimum 5-year period should be applied. This is in addition to any preceding Introductory (Starter / Probationary) Tenancy.
There are instances where a short-fixed term tenancy may be appropriate, such as:
- where a property becomes either under occupied or overcrowded.
- where a tenant has a short-term need for an adapted home.
The circumstances under which short-fixed term tenancies are used should be set out in the Registered Providers’ Tenancy Policy, to ensure this is transparent and fair for tenants.
Fixed term tenancies should not be seen as a tool to deal with rent arrears or anti- social behaviour.
Some vulnerable tenants may need settled accommodation for their health and well-being. Where their circumstances are unlikely to change over the long term, consideration should be given to offering permanent tenancies.
5. Successions
As set out in law, the Leicester City Council’s Conditions of Tenancy allows one right of succession to the property, following the death of a tenant. Where a person does not have the right to succeed the tenancy, assistance will be given to help them to find another property.
Who can succeed to a secure or flexible tenancy
A person can only succeed to a secure or flexible tenancy if they were occupying the dwelling as their only or principal home at the time of the tenant's death. Temporary absence from the dwelling at the time of death or exclusion under a court order (for example, an occupation order) does not prevent the condition being satisfied.
Entitled to succeed a tenancy, depends upon when the tenancy started.
Tenancies that began before 1 April 2012
The deceased tenant's spouse or civil partner can succeed if they were occupying the property as their only or principal home.
A cohabitee or a member of the family can succeed if they:
- were occupying the property as their only or principal home.
- had been residing with the tenant for at least 12 months prior to the death of the tenant.
The tenancy agreement might allow for other people to succeed. For example, a carer, but this would usually be an allocation of a new tenancy. Another person might be able to succeed to the new tenancy on the death of the succeeding tenant.
Tenancy that began on or after 1 April 2012
Only the deceased tenant's spouse, civil partner or cohabitee is entitled to succeed.
Other family members cannot succeed unless there is a term in the tenancy agreement that expressly allows for this to happen. The tenancy agreement could allow someone else to succeed, such as a carer.
Where a succession occurs as a result of rights provided for in the tenancy agreement, this is a statutory succession and there are no further rights of succession.
6. Housing Allocation Scheme
The Council’s Housing Allocation Scheme sets out who qualifies for social housing and how applicants are prioritised. Housing applicants who are deemed to be the most vulnerable and in greatest housing need are currently ranked from band 1 to 3, with band 1 and 2 being the highest priority, and then further priority is given, according to the length of time they have been in the relevant band.
The Allocation Scheme is used to determine who will be offered social housing and offered suitable tenancies, including a renewal offer after an Introductory period and when secure tenancy is being offered.
The Council will ensure that the Allocation Scheme supports the delivery of the objectives set out in this Tenancy Strategy.
With the agreement of the Housing Associations, all social rented homes will continue to be let through our choice-based lettings scheme and advertised on Leicester Homechoice. These properties will be clearly indicated on the property advert.
When making offers of accommodation to prospective tenants, it is essential that they receive full and sound advice about their tenancies. This is the responsibility of both the Council and the relevant Registered Providers.
New tenants should also be encouraged to think about their housing options at the end of a flexible tenancy, during their tenancy. If the tenant wants to consider low-cost home ownership, they should be guided and provided with sound advice. All support and advice must be given on housing options to ensure the tenant will not become homeless at the end of their fixed term tenancy.
7. Homelessness and Preventative Measures
The Homelessness Reduction Act 2017 has transformed the legislation around homelessness. It has introduced earlier intervention and prevention along with a duty to refer from designated public bodies, most notably to help where people are not yet homeless, but at risk of becoming homeless within 56 days. In Leicester, this service is provided by the Homelessness Prevention and Support Service.
When we hear the term ‘homeless’ we often think of people living rough on the streets; but this is only one form of homelessness. It is the one we think of because it is more visible than people who may be living in temporary accommodation, or in unsuitable or transitory housing. Rough sleeping is a very small proportion of homelessness in the country and in Leicester.
Homelessness can mean being without a home, but it can also apply to people living in homes that are unreasonable to continue to occupy due to poor conditions. It can also apply to people who have a home that isn’t available for their use right now.
Homelessness assistance broadly falls under three main activities depending on the circumstances presented:
Prevent – Prevent people from becoming homeless in the first place by identifying people at risk and intervening early.
Intervene – Intervene rapidly if a homelessness crisis occurs, so it is brief and non-recurrent.
Recover – Help people who are already homeless, or who become homeless due to their inability to prevent homelessness
We have seen a slight increase in the number of homeless applications since the introduction of the Homelessness Reduction Act, although it should be noted that the pandemic has made trend analysis more difficult.
Applications
- 2018/19 = 2,702
- 2019/20 = 3,060
- 2020/21 = 2,604
- 2021/22 = 2,737
- 2022/23 = 2,761
The Homelessness Prevention and Support Service offers a triage service so approaches can be prioritised. If customers tell us they are homeless already they will be offered ‘Relief’ services. If the customer is at risk of becoming homeless on the day they are making contact, the case will be referred for immediate, specialist advice and assistance to see if there are any remaining opportunities to prevent homelessness from occurring. Other customers, who are at risk of becoming homeless within the next 56 days, will be booked an appointment to speak to a Homelessness Prevention Officer at the earliest opportunity.
Access to timely advice is key in the prevention of homelessness, as is effective partnership working. As well as advice provided by the Homelessness Prevention and Support Service there is currently a range of other advice services available in the city and self-service information available through the MyHOME website and App. There is independent homelessness advice provided by a local charity, Shelter Housing Advice & Research Project (SHARP).
Leicester’s prevention approach has been successful, especially in tackling family homelessness, and we compare well against national averages. Since the introduction of the Homelessness Reduction Act in April 2018 Leicester’s Prevention of Homelessness performance has increased year on year, with the exception of 2021/2022 which saw a dip in performance related to pressures following the COVID-19 pandemic.
Outcomes for those with a risk/ threat of homelessness
Preventing homelessness is an ongoing challenge and prevention options are becoming more limited due to the availability of affordable housing solutions. However, in terms of Leicester’s success rate in preventing homelessness its performance is above the national average.
Performance
- Leicester performance = 74%
- National average performance = 58%
- National rankings (out of 309) = 57
- Leicester performance = 75%
- National average performance = 59%
- National rankings (out of 309) = 59
- Leicester performance = 76%
- National average performance = 60%
- National rankings (out of 309) = 36
- Leicester performance = 70%
- National average performance = 57%
- National rankings (out of 309) = 43
An expectation for Registered Providers is that they co-operate and support the Council in its duty to prevent homelessness and that this should be clearly documented in their own tenancy policy.
8. Social and Affordable Rents
Social housing rents, which are set by Government are usually up to 50% of market rents. Affordable Rents can be set up to 80% of local market rents.
It is important that tenants and prospective tenants understand the difference between Affordable Rents and Social Rents. The Council expects all Registered Providers to set out their intentions to use Affordable Rents in their individual Tenancy Policies, which should consider household incomes to enable them to pay for Affordable Rent housing.
It is also recommended that when setting rents, Registered Providers take into account the local market context (including the relevant Local Housing Allowance) and the wider benefit support policies.
Rent Levels in Leicester (2022):
Average general needs Social Rent levels per property size
- Bedsit = £77.67
- 1 Bedroom = £86.32
- 2 Bedroom = £90.07
- 3 Bedroom = £95.46
- 4 Bedroom = £114.11
- 5 Bedroom = £116.91
- 6+Bedroom = £132.22
Average general need affordable rent levels per property size
- Non self-contained = £0.00
- Bedsit = £81.01
- 1 Bedroom = £94,92
- 2 Bedroom = £108.03
- 3 Bedroom = £125.25
- 4 Bedroom = £150.07
The following should be considered by Registered Providers in regards to the setting of their rents:
- We support the provision of genuinely affordable homes with rents below Leicester Living Rent levels (private sector homes). However, our preference is for Social Rent to be used where possible, as this offers greater affordability to those on low incomes and to our most vulnerable residents and customers.
- Registered Providers should adhere to the current Rent Standard set out by the Regulator of Social Housing and the policy statement and directions set out for social housing rents by the Ministry of Housing, Communities and Local Government.
Registered Providers’ Tenancy Policies should also consider the following issues:
- the purpose of the accommodation
- the needs of individual households
- the efficient use of social housing stock
- the sustainability of the community
- children in need.
9. Legislative changes
The Housing and Planning Act 2016
- Mandatory Fixed Term tenancies: the requirement to only offer fixed term tenancies was dropped. The Government has no current plans to end secure ‘lifetime’ tenancies. Research shows that the Government feels that to impose fixed term tenancies may affect the stability of households and have a negative impact on communities.
- Regulations to reduce co-regulation of housing associations came into effect 16th November 2017.
- Voluntary Right to Buy for housing association tenants. The government committed to further testing of Voluntary Right to Buy in their most recent manifesto, and in May 2022, the Prime Minister announced that the government had plans to extend Right to Buy to housing association tenants. There are currently no details of arrangements, nor a date for the full rollout.
- Higher Rent for higher income tenants: the Government has decided not to proceed with a compulsory approach.
The Welfare Reform and Work Act 2016
- Imposed a 1% reduction on rents from April 2016 for four years, which affected investment in properties and further development.
The Homelessness Reduction Act 2017
- Revised and placed number of additional duties on local authorities including, the extension of the time frame to assist those threatened with homelessness (within 28 days to 56 days), the prevention and relief of homelessness even if applicant is not in priority need, a duty on public services to refer applicants suspected to be homeless or at risk of losing their home and to agree a personalised plan.
The Domestic Abuse Act 2021
- Places a duty on local housing authorities to offer a secure tenancy, which is not a flexible tenancy where the person is or has been a victim of domestic abuse as defined by clause 1 of the Act, and the new tenancy is being granted for reasons connected with that abuse.
The government published a White Paper in June 2022 - “A fairer private rented sector”, which it described as its long-term vision for the Private Rented Sector. It sets out the details of its plans for the Renters’ Reform Bill. The bill is yet to be passed through Parliament and turned into legislation. Therefore, this Tenancy Strategy will be updated in accordance as the reforms are confirmed and published.
10. Equality & Diversity
The finalised Tenancy Strategy will be subject to an Equality Impact Assessment and the Council expects all Registered Providers in the city to carry out their own Equality Impact Assessment for their individual Tenancy Policies.
11. Review of the Strategy
This Strategy will be reviewed at least every five years in line with the requirements set out in the Localism Act 2011. The Tenancy Strategy may be reviewed more frequently, as a result of monitoring outcomes and / or changes in legislation.
12. Glossary
Affordable Homes - these can be low cost rented (Social Rent, Affordable Rent) and intermediate housing, provided to specified eligible households whose needs are not met by the market.
Affordable Rent - affordable rent is rent that is set at up to 80% of market rent (including service charges). Affordable rents are defined as ‘low cost’ rental accommodation, and this is also classed as ‘social housing’. This means that they are regulated by the Regulator of Social Housing. Homes remain more affordable than renting on the private rental market.
Assured Shorthold Tenancy - an assured shorthold tenancy can be issued by a Registered Provider of social housing or a private landlord. It is recommended this type of tenancy is not used by Registered Providers for Social Rent or Affordable Rent properties. An assured shorthold tenancy is also the most common type of tenancy in the Private Rented Sector for tenancies started on or after 15 January 1989. The property must be the tenant’s main home and the landlord doesn’t live in the property.
Assured Tenancy - an assured tenancy can be granted either with or without a fixed period, similar to a secure tenancy or with a fixed period by a Registered Provider. An assured tenancy can only be ended if the tenant breaches their tenancy conditions during the tenant’s lifetime if the tenancy has no fixed term and during the fixed term, if the tenancy has a fixed term.
Flexible Secure Tenancy (fixed term tenancy) - a flexible tenancy gives tenants the similar rights to a life-time secure tenancy, but only lasts for a fixed period of time. Introduced by the Localism Act 2011, this tenancy type can only be granted by the Council. It’s a type of Secure tenancy which has an end date. This means at the end date, the Council can recover the property if it deemed to be no longer suitable for the residing tenant.
Homecome - HomeCome Limited is a private housing company that works with Leicester City Council to provide good quality homes for rent at affordable levels for people on the Council’s Housing Register. The Council is a board member of HomeCome. The landlord is HomeCome and Leicester City Council is the managing agent on behalf of HomeCome. This means that HomeCome buys its management and repairs service from Leicester City Council.
Private Rented Sector – private rented sector is technically speaking, an umbrella term used to describe any residential property in which a tenant lives and pays rent to a private landlord.
Secure Tenancy - a secure tenancy is a form of social housing where the resident can live in the property for the rest of their life, as long as they don’t break the terms of the tenancy.
Social rent - is usually rent that is paid to Registered Providers and local authorities. It is low-cost rent that is set by a government formula, which means it is significantly lower than the rent a tenant would pay in the normal market. Not everyone is eligible for social housing and so the next best alternative could be accommodation that charges ‘affordable rent’.
Registered Provider - means anybody or company accredited by the Homes England; or any person or body or entity which is registered as a provider of social housing.