L&Q to end use of fixed-term tenancies, move to open-ended assured tenancies

One of the UK’s largest social landlords, L&Q, has said it will end the use of fixed term tenancies (FTTs) and instead offer open-ended assured tenancies as its preferred tenure type.

L&Q will also move 8,500 existing fixed term tenants onto assured tenancies.

The social landlord added that it was “working closely with residents to develop a compelling offer to support aspiring homeowners and customers who need to move due to a change in their circumstances”. 

L&Q said its decision followed extensive research and consultation with residents and a detailed analysis of data covering the full life-cycle of FTTs.

It is also a response to the government’s offer of greater flexibility outlined in the recent Green Paper, “A new deal for social housing.”

The social landlord said research had highlighted the fact that many residents suffered anxiety about the renewal process; “it also found that FTTs were not achieving their desired policy outcomes, largely because they introduce an arbitrary renewal date that does not reflect individual circumstances”.

L&Q added that the research highlights included:

• During the six-year period covered by the analysis, in very few cases did the renewal date of the tenancy coincide with a change in resident circumstances.
• Other than for serious rent arrears, L&Q has effectively renewed the overwhelming majority of its 8,500 FTTs without ending a single FTT due to the under-occupation of a home.
• FTTs act as a barrier to mobility “as people don’t want to lose security of tenure”.
• The research confirmed that the biggest barrier to meeting housing need, including downsizing, is the lack of available suitable homes.

“Because of these findings, L&Q is now working closely with residents to develop a package of support measures and incentives that will be more effective in encouraging resident mobility when housing needs change and which we plan to make available,” the landlord said.

David Montague, chief executive of L&Q, said: “We found FTTs to be a crude tool that have not fixed the problems they were created to address. What’s more, the renewal process causes unnecessary worry for residents.

“We share the government’s determination to tackle social stigma. Ending fixed term tenancies, introducing a new home standard, linking rents to local incomes and a £250m long-term investment in communities to build skills and opportunities are all designed to ensure that everyone has a safe, secure, quality home they can afford.”

The ability for housing associations to use Fixed Term Tenancies was introduced through the Localism Act in 2011.

Since 2011, L&Q has issued around 8,500 FTTs to social housing tenants; it currently manages around 41,000 assured tenancies.