Many social landlords will have no doubt by now already decided upon the model of tenancy that they intend to use for their affordable rent tenancy product.  Importantly, due some of the implications of granting fixed term tenancies (1 - see footnote) , which, until sections 156 and 157 Localism Act 2011 come in to force, will remain an issue, many social landlords have sought to circumvent these issues by granting assured shorthold tenancies with a fetter on the ability to recover possession via the mandatory route (2 - see footnote) for a defined period such as 5 years.

Some social landlords are utilising such tenancy models as an interim measure until the fixes contained in sections 156 and 157 come into force (expected to be April 2012), whereupon they will then switch over to granting fixed term assured shorthold tenancies. Anecdotally we are aware of a number of social landlords that intend to continue to use the period shorthold tenancy with a fetter model, even after April 2012.

Unfortunately it does now appear that after April 2012, when the revised regulatory standards are expected to also come into force, social landlords may not be permitted to grant such tenancies.

By reference to the recently released CLG Directions to the Social Housing Regulator (3 - see footnote) (for a copy click here) (page 22 para 4 (a)) and the TSA's consultation on the revised standards (4 - see footnote) (for a copy click here) (page 33 para 2.2) it is clear that when Registered Providers are considering granting periodic tenancies instead of fixed term tenancies, they should not grant periodic assured shorthold tenancies to general needs tenants.

Comment

Clearly this is somewhat unexpected, and whilst there is no guarantee that this amendment will form part of the final version of the revised Tenure Standard as it is presently only in consultation, it would be prudent for some Registered Providers to now revisit their approach to the model used for affordable rent tenancies so that they are geared up for this potentially being a reality in April 2012.

Should you have any questions or queries on this subject please contact our specialists Jason Hobday, Joe Warren or Sarah Schooling on 01392 207020 or email us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

1. requirement to grant by Deed if over 3 years, and registration with the Land Registry if  over 7 years

2. a 6 month 'minded to' notice followed by a section 21 Notice Requiring Possession.

3. Implementing Social Housing Reform: Directions to the Social Housing Regulator – Consultation – Summary of responses

4. A revised regulatory framework for social housing in England from April 2012