Wednesday, 1 June 2011

Unease over Fixed-Term Tenancies As Localism Bill Heads To Lords

The ferocious debate around the introduction of flexible tenancies in the Localism Bill, which will allow councils to offer new tenants fixed-term tenancies of two years, has left many MPs fearful of its effects. Some MPs described the impact of councils imposing two-year terms as: “divisive”, “demoting”, “damaging”. The Bill, has cleared the Commons and is now bound for the House of Lords. On its passage through the Commons, an amendment to remove the introduction of flexible tenancies altogether was defeated. Calls to increase the minimum term to five years - and legislate it - were also brushed aside. The flexibility, say ministers, will give social landlords the power to better manage their stock helping to house those on the waiting list. The Government says it only expects the minimum terms to be used in “exceptional circumstances”. The flexibility for housing associations to offer fixed-term tenancies was brought in this April, as part of the Affordable Rent product - allowing them to charge rents at up to 80% of the market rent on new homes and a proportion of their existing stock. Read more on 24dash.

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