Tenancy Management Policy May 2024
8. Mutual exchange
The Council encourages the use of mutual exchange for tenants who wish to downsize, upsize or those who wish to move to another location. However, applicants must satisfy the Council's Allocation policy in terms of the size of the accommodation.
The Council promotes opportunities for exchange via a subscription to the "HomeSwapper" service. This service allows tenants of the Council to access, free of charge, a national register of tenants looking to mutually exchange. From this register tenants will potentially be able to identify matches in their area of choice.
Requests for a mutual exchange can be accepted from any public sector tenant who has a secure, flexible or an assured tenancy. The Council will not permit exchanges involving introductory or demoted tenants or tenants of private landlords.
It is the applicant's responsibility to view any property considered for exchange. This is crucial because when you exchange you are agreeing to take the property in its present condition, which may mean taking on responsibility for alterations that an existing tenant has carried out. Once you submit your exchange request, the Council will assume that you have already viewed each other's properties and that you are satisfied with the condition of the property and want to proceed with the exchange.
Once application forms for exchange have been received from all parties, the Council will:
- Scrutinise the application to ensure efficient use of the housing stock. Applications will not progress where the size of the accommodation exceeds the households needs as stated in the Council's Allocation policy
- Carry out an inspection of the applicant's current property including an electrical check and where applicable gas check. An inspection report including photographs will be sent to the incoming tenant; and
- Ask the tenant to sign a letter confirming acceptance of the new property and its current condition.
If the tenant is moving to a home owned by another landlord, the Council will provide a tenant reference and will request a reference for the incoming tenant.
An exchange can only happen once written permission has been given from all landlords. If for any reason, the exchange is not approved, the reasons for the refusal will be put in writing to the applicant.
The Council can only refuse to agree to an exchange on specified grounds in the legislation that governs mutual exchanges - either the Housing Act 1985 or the Localism Act 2011 (for further detail see Appendix 1).
Conditional consent can be given in cases where there are breaches of tenancy, such as rent arrears or poor condition / damage to the property. The exchange cannot proceed until the breach of tenancy has been remedied.
Where appropriate, the Council will have regard to household members that have a disability as defined by the Equality Act 2010. Properties that have been adapted for medical reasons will not be let to households that do not require the adaptations.
The Council will give or refuse consent within 42 days of the application to exchange being received.
The original rights granted in tenancy agreements can be lost during mutual exchange, for example there may be different rules about succession, rent levels and assignment. Tenants are advised to read tenancy agreements properly and take their own legal advice from a solicitor or specialist advisor before agreeing to an exchange.
The right to succession is personal to the individual tenant and this right transfers with the tenant when they move in a mutual exchange. So, for example a tenant who is a successor under the original tenancy remains a successor following the mutual exchange under their 'new' tenancy.
The Council will ensure that tenants who decide to mutually exchange are aware of any implications to their tenancy, such as:
- Any changes to their Secure or Assured status
- Any differences in the rules of succession
- Any change in rent level between Social Rent and Affordable Rent; and
- Any gain or loss of the Right to Buy.