Draft Mutual Exchange Policy
| Authors | Mel Staunton |
|---|---|
| Date authorised | August 2024 |
| Date adopted | |
| Delegated authority approved by | Richard Tomkinson |
| Revision date |
Contents
- Policy Statement
- Policy Aims and Objectives
- Eligibility
- Types of Exchange
- Assistance and Support
- Application Process
- Property Inspection
- Repairs during a Mutual Exchange
- Mutual Exchange Approvals
- Grounds for Refusal of a Mutual Exchange
- Decision Communication
- Right to Review and Appeals Procedures
- Gas and Electrical Safety Checks
- Moving Home
- Complaints and Feedback
- Review and Updates
- Legal Framework
- Equality and Diversity Impacts
- Consultation
- Monitoring and Controls
1. Policy Statement
1.1 Arun District Council recognises the significance of Mutual Exchange as a key opportunity for tenants to swap homes, encouraging flexibility and mobility within the social housing community.
1.2 Arun District Council is committed to facilitating a transparent, efficient, and accessible process for tenants seeking to exchange homes, thereby enhancing tenant satisfaction and addressing diverse housing needs.
1.3 This policy outlines the guidelines and procedures governing Mutual Exchange for Arun District Council tenants and external social housing tenants seeking exchanges with Arun District Council tenants.
1.4 The policy ensures that the process complies with relevant legislation and provides clarity for all stakeholders, including Housing Associations, Tenancy Support services, and health and community care services.
2. Policy Aims and Objectives
2.1 The aim of this policy is to ensure that the Mutual Exchange process operates transparently, equitably, and in compliance with legal standards. The key objectives are to:
- Clearly communicate to staff, tenants, and partners how the Mutual Exchange process functions, outlining eligibility requirements and valid reasons for refusal.
- Encourage the use of Mutual Exchange as a practical housing solution, supporting tenants who wish to move for reasons such as proximity to work, family, friends, or essential services.
- Enhance tenant mobility by facilitating moves both within and outside the district, ensuring that housing better meets individual circumstances and needs, whilst offering the option for tenants to move into the district without the need of a local connection.
- Support the council’s broader housing strategy by addressing challenges such as overcrowding, under-occupation, and housing accessibility, promoting the efficient allocation of housing resources.
- Maximise the effective utilisation of the council’s housing stock by empowering tenants to take personal responsibility to find housing solutions independently, reducing demand on the Housing Register and related services.
- Highlight Mutual Exchange as a potentially quicker solution for meeting tenants' housing needs when compared to waiting for home moves via the Housing Register.
3. Eligibility
3.1 The following eligibility criteria must be met to ensure a fair and transparent process:
3.2 Eligibility Criteria for Mutual Exchange:
3.2.1 Clear Rent Account: Tenants must have no outstanding rent arrears.
3.2.2 Property Condition: Tenants must accept properties in their existing condition ("as is") at the time of the exchange. The council will not be responsible for covering any costs associated with the condition of the properties or for any rent loss incurred due to the exchange. Any post-exchange work required, including repairs or damages, may be charged to the outgoing tenant unless an alternative arrangement has been agreed upon prior to the exchange.
3.2.3 Suitability of Property Size: The property must be suitable in size for the incoming tenant(s), as defined within our Housing Allocations Policy.
3.2.4 Adaptations: If a property includes substantial adaptations for disability, such as widened doors, a level access shower, a wet room, or a stair lift, the incoming tenant must have a demonstrated need for these features. This ensures the property is suitable for their requirements and makes efficient use of the council’s adapted housing stock. Minor adaptations, such as grab rails or additional plug sockets, will not necessarily affect the allocation of the property unless they significantly impact its overall suitability for the new tenant.
3.2.5 Possession Orders: No court orders should grant possession of any property involved in the exchange.
3.2.6 Fraud Checks: Each Mutual Exchange application will undergo a thorough review by our fraud investigation and enforcement officer to ensure the accuracy and legitimacy of the application. This process is in place to detect and prevent any fraudulent activity, safeguarding the integrity of the housing allocation system.
3.3 Tenants on Introductory or Fixed-Term Tenancies:
3.3.1 Tenants on fixed-term tenancies may apply for a mutual exchange if they meet all eligibility criteria outlined in Section 3.2.
3.4 Right to Exchange
3.4.1 Arun District Council Tenants: Tenants with Secure or Fixed-Term Flexible Tenancies with Arun District Council are eligible for a mutual exchange.
3.4.2 External Tenants: External tenants seeking to exchange with Arun tenants must hold a lifetime (secure or assured) or Fixed-Term/Flexible Tenancy.
3.4.3 Scope of Exchange: Tenants may exchange homes with tenants from various social housing providers across the UK. This includes the following types of organisations:
- Other Local Authorities
- Arm’s Length Management Organisations (ALMOs)
- Housing Associations
- Housing Trusts, including charitable organisations
This UK-wide approach broadens housing options and enhances tenant mobility, supporting tenants in finding homes that better meet their needs.
3.4.4 Introductory Tenancies: Tenants on Introductory Tenancies are not eligible for exchange until their probation period is successfully completed.
3.4.5 S106 Planning Agreements: Properties subject to S106 planning agreements may have local connection restrictions. However, the council will not withhold consent if the incoming tenant lacks a local connection, as the Housing Act 1985 overrides such restrictions.
4. Types of Exchange
4.1 Consent Required: Tenants must obtain written consent from their landlords to proceed with a mutual exchange. For Arun District Council properties, both incoming and outgoing tenants must submit a Mutual Exchange Form Arun District Council’s neighbourhood services team.
4.2 Assignment: Used when exchange partners have similar security of tenure. Both tenants sign a ‘Deed of Assignment,’ transferring rights and responsibilities between them.
4.3 Surrender and Re-grant: This method applies when tenants with different tenancy types (e.g., lifetime vs. flexible or fixed term) exchange. The tenant with a lifetime tenancy (pre-1 April 2012) may surrender their current tenancy and be issued a new one with similar security, provided conditions are met, such as:
- The rent on the fixed-term tenancy must be at social rent.
- The exchange must not violate grounds for refusal outlined in Schedule 14 of the Localism Act 2011.
4.4 Flexible Tenancies: Tenants of Arun District Council who are on flexible fixed-term tenancies will be offered a secure tenancy prior to the completion of the exchange, assuming there are no tenancy breaches. The incoming tenant will subsequently be granted the secure tenancy. Feedback indicates that this process will occur during a surrender and re-grant.
5. Assistance and Support
5.1 Arun District Council offers support throughout the mutual exchange process, including help with forms, inspections, and guidance on procedures.
5.2 Information and Guidance
- The council provides detailed mutual exchange procedures through this policy and makes them available on the council’s website.
- Tenants may also contact their neighbourhood housing officers for additional support.
5.3 Support for Vulnerable Tenants
- Self-Management: Mutual Exchange is tenant-led; tenants are responsible for finding Mutual Exchange partners, checking properties, and arranging moves.
- Internet Access: Assistance is available for tenants who lack internet access.
- Additional Support: Assistance is provided on a case-by-case basis, which may include help with registration.
5.4 Support with Downsizing
5.4.1 Incentives: Arun District Council provides a financial incentive of £1,500 to tenants who successfully downsize through a mutual exchange, provided they are classified as under-occupying according to the Arun District Council’s Allocations Policy. This incentive is only available to the outgoing tenant confirmed as under-occupying and applies exclusively to exchanges involving Arun District Council properties. If the tenant relocates again within a year of the exchange, they will be required to repay the incentive.
5.4.2 Recovery of Recharges or Rent Arrears: If the outgoing tenant has any outstanding recharges, rent arrears or other housing related debt, the financial incentive will be utilised to offset these amounts. This recovery process will be clearly communicated to the tenant prior to the exchange.
5.4.3 Purpose: The incentive aims to cover removal and moving costs and ensure the best utilisation of our Housing Stock.
6. Application Process
6.1 Completing the Application: Tenants seeking a mutual exchange must complete a mutual exchange application form. This form is available through Arun District Council’s neighbourhood team or can be downloaded from the council’s website.
6.2 Providing Accurate Information: Tenants are encouraged to submit detailed and accurate information in their application, including property specifics, reasons for the exchange, any special requirements, and a complete list of all individuals living in the property. This information is essential for processing the application effectively.
6.3 Finding an Exchange Partner: Tenants are encouraged to actively seek out potential exchange partners. This can be done by contacting other tenants directly or through various means such as advertising in local shops, newspapers, or on social media. Additionally, tenants may use other mutual exchange websites, which may charge a fee.
6.4 HomeSwapper: Arun District Council subscribes to HomeSwapper, a recognised mutual exchange platform that allows Arun District Council tenants to access the service free of charge. This platform provides an easy way for tenants to find suitable exchange partners.
6.5 Before Applying: Before applying, tenants must ensure they are satisfied with the property they intend to move into. They should carefully consider potential changes in tenancy terms, costs and affordability, repairs, and the condition of the property, as well as the living environment.
6.6 Multiple Swaps: While mutual exchanges typically involve a two-way swap, Arun District Council will accept applications for multiple exchanges involving three or more parties.
6.7 Required Documentation: Tenants must provide all necessary information and documents requested on the application form to facilitate the assessment process. Any questions or submissions of documentation should be directed to neighbourhood.services@arun.gov.uk.
6.8 Joint Tenancies: All named tenants on a joint tenancy must sign the mutual exchange application form. If this is not possible, tenants should contact their neighbourhood housing officer for advice.
7. Property Inspection
7.1 Inspection Requirement: All mutual exchanges are subject to an inspection by a neighbourhood housing officer and a technical officer or property surveyor. The purpose is to ensure that the property meets health, safety, void and tenancy standards before the exchange can proceed.
7.2 Inspection Details: During the inspection, officers will:
- Notify the tenant of any repairs that need to be completed before the exchange can take place.
- Record the decorative state of the property.
- List any items being gifted from the outgoing tenant to the incoming tenant.
- Take photographs of any repairs, damage, unauthorised improvements, or health and safety issues.
- Note any breaches of tenancy.
7.3 Inspection Report: After the inspection, both tenants will receive a copy of the inspection report, which will include:
- A list of required repairs or remedial works.
- Details of any gifted items.
- Photographs of damage, repairs, or unauthorised improvements.
7.4 Unauthorised Improvements: If unauthorised improvements have been made by the outgoing tenant, the following actions may be taken:
- The tenant may be required to restore the property to its original state.
- Arun District Council may undertake the work and recharge the outgoing tenant.
- A Notice of Seeking Possession (NoSP) may be considered if the alterations constitute a breach of tenancy.
7.5 Additional Inspections: Depending on circumstances, the incoming tenant may be invited to attend the inspection of the property they plan to move into. The inspection date will be agreed upon with the outgoing tenant, ensuring it aligns with the council's statutory obligation to provide a decision within 42 days of receiving the mutual exchange application.
7.6 Awaab's Law Compliance: If damp and mould is identified during the property inspection, Arun District Council will adhere to the requirements set forth under Awaab's Law. This includes:
- Immediate notification to both tenants about the identified damp and mould issues.
- A commitment to undertake necessary remedial actions to address the damp and mould before the exchange can proceed, ensuring the property meets the required health and safety standards.
- An assurance that any repairs related to damp and mould will be completed in a timely manner to prevent health risks and protect tenant welfare.
8. Repairs during a Mutual Exchange
8.1 Council-Responsible Repairs: These include structural repairs, essential services, and urgent health and safety issues.
- Structural repairs (e.g., roof, walls, foundations)
- Essential services like heating, plumbing, and electrical issues
- Any urgent health and safety repairs, such as those posing immediate risks
8.2 Tenant-Responsible Repairs: These must be completed before the exchange. Alternatively, the incoming tenant may accept the property "as seen."
- Damage caused by the tenant (e.g., broken fixtures, holes in walls)
- Cosmetic issues such as painting and decorating
- Any unauthorised alterations made by the tenant without permission from the council
- Alternatively, if the repairs are not completed, the incoming tenant must agree to take the property "as seen" and acknowledge responsibility for those repairs.
8.3 The exchange will not proceed until all required repairs by the tenant have been completed or the incoming tenant agrees to accept the property in its current condition.
8.4 When Repairs Become Standard: After the exchange, the property is subject to the Arun District Council's standard repairs service. However, any non-standard repairs or damages from the previous tenant will not be covered if they were agreed upon in the "as seen" exchange.
8.5 Major Repairs and Unauthorised Improvements: Exchanges will not proceed until major repairs caused by tenant neglect are addressed. Unauthorised or unsafe improvements must be either corrected by the tenant or the council may:
- Require the tenant to restore the property to its original condition.
- Undertake the work and recharge the tenant.
- Serve a Notice of Seeking Possession (NoSP) for a tenancy breach.
9. Mutual Exchange Approvals
9.1 Tenancy Breaches: The neighbourhood housing officer will check for any breaches of tenancy, including notices or pending court orders.
9.2 References: For exchanges involving non-Arun District Council tenants, landlords will be asked to provide references on both outgoing and incoming tenants, sharing any tenancy management issues, including any housing related debts, anti-social behaviour complaints, known criminal activity, or child protection concerns.
9.3 Exchange Approval: Mutual exchange approval is required from Arun District Council and other involved landlords. All parties must submit fully completed applications for the process to begin. The council will make a decision within 42 days.
9.4 Assessment Criteria: The Mutual Exchange approval process will include:
- Property inspections.
- Tenancy breaches.
- Landlord references for external tenants.
- Rent arrears, if applicable.
- Tenants will be notified of the decision following assessment.
10. Grounds for Refusal of a Mutual Exchange
10.1 Arun District Council reserves the right to refuse a mutual exchange under the following circumstances, in alignment with housing laws and best practices:
- Rent Arrears: If the tenant has outstanding rent arrears or has breached the terms of their tenancy agreement.
- Legal Action: If a possession order has been made, or if a notice seeking possession is still in force, including ongoing legal proceedings.
- Unsuitable Property Size: The exchange will be refused if the new property is either too large or too small for the tenant's needs, in accordance with Arun District Council’s Housing Allocations policy.
- Adapted Property: If a property has been adapted for a person with disabilities and the incoming tenant does not require such adaptations.
- Premium Payments: If there is evidence that one party has paid a premium to induce the exchange.
- Health and Safety Violations: If an inspection reveals health and safety hazards caused by tenant misuse or neglect that have not been remedied.
- Anti-Social Behaviour: The tenant has a history of anti-social behaviour, serious tenancy breaches, or criminal activity linked to the property.
- Special Housing Needs: Where the accommodation has special features (such as sheltered housing) and the incoming tenant does not meet the criteria for such features (e.g., age restrictions).
11. Decision Communication
11.1 Arun District Council will provide a written decision within 42 days of receiving fully completed mutual exchange applications, as required by law.
11.2 If the decision is delayed beyond 42 days, tenants may seek an injunction from the County Court, which may prevent the council from refusing the exchange on statutory grounds. However, this delay does not automatically mean consent to the exchange.
11.3 Decisions will include one of the following outcomes:
- Approval: The application meets all requirements.
- Conditional Approval: Certain conditions, such as resolving rent arrears or completing repairs, must be fulfilled before the exchange.
- Refusal: Grounds for refusal will be based on legal criteria, including breaches of tenancy or arrears.
11.4 If refused, reasons will be clearly explained, and the tenant may reapply after resolving the issues.
12. Right to Review and Appeals Procedures
12.1 If a mutual exchange application is refused, tenants will receive written notification, including the grounds for refusal.
12.2 Tenants may request a review of the decision by submitting a written request to our Neighbourhood Service Manager within 14 days of the refusal.
12.3 The outcome of the review will be communicated within 28 days. If the decision is upheld, tenants may appeal to the group head of housing, wellbeing & communities within 14 days of the review outcome.
12.4 The appeal decision will be final. If dissatisfaction remains, tenants can follow the council’s formal complaints process. For external landlords, tenants must appeal directly through their own landlord’s process.
13. Gas and Electrical Safety Checks
13.1 Gas Safety:
13.1.1 Arun District Council is committed to ensuring gas safety in all properties involved in a mutual exchange. In compliance with the Gas Safety (Installation and Use) Regulations 1998, we will take the following measures:
13.1.2 All council properties involved in an exchange must have a valid Landlord Gas Safety Record (LGSR) prior to the exchange.
13.1.3 Tenants with existing gas appliances must provide ADC with an Installation Certificate from a Gas Safe Registered engineer.
13.2 Electrical Safety
13.2.1The council requires a full Electrical Installation Condition Report (EICR) to be conducted by a qualified contractor before the exchange. Any identified Category 1 or Category 2 defects must be rectified before the exchange is finalised.
13.2.2 The council will address any items within its responsibility that require attention and ensure repairs are completed promptly before the exchange.
14. Moving Home
14.1 Sign-Up and Move-In Dates: Tenants must agree on the sign-up and move-in dates with the neighbourhood housing officer (HSO) and provide at least 7 working days' notice to allow necessary arrangements for sign-up and property transfer to be completed.
14.2 Items Gifted or Removed: A clear list of items that will be gifted or removed from the property must be agreed upon by both exchanging tenants. This list should be communicated to the neighbourhood housing officer to ensure transparency and proper documentation.
14.3 Property Condition: Tenants are required to leave their current property in a clean and good condition. All personal belongings, rubbish, and items from the property, garden, and outbuildings must be removed prior to the exchange.
14.4 Key Handover: Tenants must hand over all keys to the incoming tenants on the day of the exchange. Arun District Council will not provide spare keys for the property.
14.5 Meter Readings: Tenants must take and record meter readings for both gas and electricity at their old and new properties on the day of the exchange. These readings should be promptly reported to the relevant utility suppliers to ensure accurate billing and service continuity.
14.6 Adaptations: If incoming tenants require adaptations to the new property, they must complete the necessary assessment, approval, and funding process before setting a date for the exchange. The exchange date should only be confirmed once all adaptations are arranged.
14.7 Tenancy Continuity: The tenancy agreements of both tenants involved in the mutual exchange will remain unchanged. There will be no automatic extension or renewal of the agreements.
14.8 Notification of Circumstance Changes: Tenants must promptly notify Arun District Council of any changes in their circumstances that may affect their eligibility for the mutual exchange. Failure to report such changes could affect the validity of the exchange.
15. Complaints and Feedback
15.1 Residents who have concerns or complaints about the Mutual Exchange process can contact the housing team through the following channels:
Phone 01903 737500
Email infomanagement@arun.gov.uk
In-Person at our office locations
15.2 Complaints will align with Arun District Council’s Complaints Policy.
16. Review and Updates
16.1 This Mutual Exchange Policy will be reviewed intermittently to ensure it remains current and effective. Any changes will be communicated to residents through our website and other appropriate communication channels.
17. Legal Framework
17.1 Our Mutual Exchange Policy is designed to comply with key housing regulations and to provide transparency and fairness in the mutual exchange process. The legal framework guiding our policy includes:
17.1.1 Housing Act 1985: This Act grants secure tenants the right to exchange homes. It includes provisions for the assignment of tenancy and requires landlords to provide a written decision on the exchange request within 42 days. The Act also outlines specific grounds on which a landlord may refuse an exchange.
17.1.2 Localism Act 2011: Section 158 of this Act ensures protections for lifetime tenants engaging in exchanges with tenants on fixed-term tenancies, preserving similar rights for all parties involved. It also specifies conditions under which exchanges may be refused.
17.1.3 Regulator of Social Housing: In accordance with the Tenancy Standard, we ensure that tenants can access mutual exchange services without incurring prohibitive costs and with appropriate support, particularly for vulnerable tenants. This ensures that the process is accessible and equitable.
17.1.4 Housing Ombudsman Service (HOS): Tenants who experience issues or disputes related to mutual exchanges, or who feel that their landlord has not complied with legal requirements, can escalate their concerns to the Housing Ombudsman Service. This independent body helps resolve complaints and ensures landlords adhere to best practices.
17.1.5 Awaab’s Law: In alignment with the recent Awaab’s Law, our Mutual Exchange Policy incorporates strict guidelines for addressing health and safety concerns, specifically relating to damp and mould. Landlords are now legally obligated to take swift action on reported damp and mould issues within a defined timeframe, ensuring that the properties involved in mutual exchanges meet health and safety standards. This law underscores our commitment to tenant safety and wellbeing, ensuring that all properties are fit for human habitation.
17.2 By including these references, our policy aims to enhance transparency and ensure that tenants have clear avenues for addressing any issues that may arise during the mutual exchange process. This approach confirms our commitment to fairness and compliance with legal standards.
- Building Safety Act 2021
- Equality Act 2010
- Fire Safety Act 2021
- Health and Safety at Work etc. Act 1974
- Homes (Fitness for Human Habitation) Act 2018
- Human Rights Act 1998
- Landlord and Tenant Act 1985
- The Gas Safety (Installation and Use) Regulations 1998
17.3 Relevant Arun District Council Policies and Procedures
17.3.1 This policy works in conjunction with the following:
- Aids & Adaptations Policy
- Anti-Social Behaviour Policy
- Asbestos Policy
- Chargeable Repairs Policy
- Communal Areas Policy
- Compensation Policy
- Damp & Mould Policy
- Decant Policy
- Data Protection Policy
- Electrical Safety Policy
- Fire Safety Policy
- Gas Safety Policy
- Hoarding Policy
- Homelessness Strategy
- Housing Strategy
- Income Recovery Policy
- Lift Safety Policy
- Mobility Scooters Policy
- Pets Policy
- Repairs Policy
- Resident Engagement Strategy
- Self-Neglect and Hoarding Policy
- Service Charges Policy
- Tenancy & Lettings Policy
- Tenancy Audit and Tenancy Fraud Policy
- Void Policy
- Water Hygiene Policy
18. Equality and Diversity Impacts
18.1 This policy has been reviewed for equality and diversity impacts. It is designed to ensure no adverse effects on any protected characteristics under the Equalities Act 2010.
18.2 The policy will be implemented in accordance with Arun District Council's responsibilities and duties under relevant legislation.
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19. Consultation
19.1 This policy has been developed in consultation with Housing Services Teams, and involved residents to ensure it meets the needs of our tenants and leaseholders, whilst fulfilling legal and regulatory requirements.
20. Monitoring and Controls
20.1 The policy and its procedures will be monitored through regular reviews and feedback from residents.
20.2 Adjustments will be made as necessary to ensure it remains effective and fair.
20.3 Training will be provided to staff to ensure they understand and correctly implement the policy.
20.4 By following this Mutual Exchange Policy, Arun District Council aims to ensure the safety, well-being, and satisfaction of all residents while maintaining compliance with legal obligations and high standards of property management.