Tenancy policy


Table of contents 

Version 2.0 April 2025

1. Scope

2. Purpose and objectives

3. Policy statement

4. Definitions

5. Policy

6. Compliance

7. Responsibilities

8. Equality, diversity and inclusion

9. Related documents

10. Legislation and regulation

11. Review

1 - Scope

This policy applies to all Sovereign Network Group (SNG) customers and sets out the types of tenancy agreements we’ll offer when letting homes for the following tenures:

  • General Needs
  • Housing for Older People
  • Supported and Specialist Housing
  • Intermediate Market Rent
  • Private Market Rent
  • Key Worker
  • Shared Ownership
  • London Living Rent
  • Smart Rent (also known as Build to Rent)

2 - Purpose and objectives

We provide good quality affordable homes and services within successful, sustainable communities.

We take into account the needs and aspirations of our existing and potential customers and offer a range of housing options and opportunities to meet their requirements.

We’ll offer tenancies or terms of occupation compatible with the:

  • purpose of the accommodation
  • needs of individual households
  • sustainability of the community
  • efficient use of housing stock
  • obligations created by planning or grant conditions.

We’ll apply all applicable statutory and legal requirements in relation to the form and use of tenancy agreements or terms of occupation.

3 - Policy statement

SNG is committed to offering fair, transparent, and appropriate tenancy arrangements that reflect the diverse needs of our customers and the communities we serve.

This Tenancy Policy outlines the types of tenancies and occupancy agreements we will offer across our portfolio, ensuring they are suitable for the purpose of the accommodation, the needs of individual households, and the long-term sustainability of our communities.

4 - Definitions

Assured - Most secure type of tenancy we can offer, considered a lifetime tenancy, can only be ended by SNG via a Court Order

Assured Shorthold - Less secure tenancy with fewer rights. Generally used for a short period of time, typically up to two years (unless supported accommodation, Market Rent or Keyworker Accommodation)

Licence Agreement - Used for a short period of time with very limited rights

Lease - Used for Shared Ownership

5 - Policy

Our Tenancy Policy sets out the types of tenancies we will offer to customers moving into our homes, depending on the purpose of the accommodation, the needs of the individual household, the sustainability of the community and to make efficient use of our housing stock.

The Tenancies that we will offer are:

Assured Tenancy

We’ll offer an assured tenancy to any new customers moving into our General Needs or Housing for Older People homes.

We’ll offer an assured tenancy to any existing customer who currently holds an assured or secure tenancy with SNG or another social housing landlord.

An assured tenancy is considered a lifetime tenancy and can only be ended by a Court Order if the customer breaches their tenancy conditions. The customer can choose to end their tenancy in line with the tenancy terms.

Assured Shorthold Tenancy

An Assured Shorthold Tenancy will generally be for no longer than two years (although they can be renewed), with the exception of some Supported Housing, Key Worker Accommodation and Private Market Rent homes.

We will offer assured shorthold tenancies to customers moving in to:

  • our temporary accommodation where we’re assisting a Local Authority to meet their homelessness duty
  • our supported accommodation, which has shared facilities where a longer-term solution is needed. We don’t set a time period on these
  • our Intermediate Market Rent and Private Market Rent homes
  • our Key Worker accommodation, where customers intend to stay over 12 weeks
  • homes designated for regeneration or disposal
  • our London Living Rent and Smart Rent homes subject to government guidance aligned to the ending of fixed term tenancies in the Renters Rights Bill.

Licence Agreement

We’ll offer licence agreements to customers moving into our supported housing homes or shared accommodation schemes, where they have a support package in place as part of the homes that’s provided to them.

We may also use licence agreements:

  • following a decant (where we’ve had to move someone out of their home temporarily, for a period of time)
  • to allow a relative, who has no right of succession, to stay in a home for an agreed period of time, while they find alternative accommodation
  • in our Key Worker accommodation where the customers stay is for less than 12 weeks
  • for short term guardianship use, in homes being redeveloped or disposed of

On exceptional circumstances we may offer a licence agreement in self-contained properties where we are assisting the Local Authority to meet their homelessness duty.

A licence agreement is not a permanent arrangement.

Leases

We will grant leases to our Shared Ownership customers.

A lease gives customers the right to occupy their home for a long period of time, as set out in the lease, and is an affordable pathway to full homeownership.

5.1 - Tenancy Changes

During the lifecycle of a tenancy, there may be request from the Customer or household to make changes to the tenancy they hold with us. Examples of this include:

5.1.1. Mutual Exchange

Customers who hold an assured tenancy can apply to mutually exchange their home.

When completing a mutual exchange into one of our homes, we’ll make sure the customer keeps their existing security of tenure.

Mutual Exchange is not available to Shared Ownership, Key Worker, Market Rent or Intermediate Market Rent customers.

5.1.2. Succession

The tenancy type granted on succession depends on whether it is statutory, contractual or discretionary.

We will grant customers with a right of survivorship or statutory succession of the original tenancy of the deceased customer, although it will not enable further successions.

In cases of discretionary or contractual succession, we will provide a tenancy in line with our policy.

On a discretionary succession, we will offer a tenancy in line with this policy, however this may be for a different property.

5.1.3. New Shared Ownership Model

If the home was built from grant funding (2021 onwards) and has the ‘Right to Shared Ownership’ linked to the home, and the customer exercises their right to buy part of that home and become a Shared Owner, they will change from an assured tenancy to a lease agreement.

5.2 Support and Advice

Whatever the tenure, we can provide support and advice to customers about their tenancy.

We’ll advise them of other possible housing options, such as applying for a transfer or mutual exchange.

We may also signpost customers to other SNG products, such as Shared Ownership.

For our Shard Ownership customers, we will provide advice on reverse staircasing and repurchase buy backs.

Through our approach to tenancy, we are ensuring that SNG homes are used to demonstrate our social purpose and support customer aspirations and social mobility.

We also provide support to our customers on issues related to Domestic Abuse – please refer to our policy.

6 - Compliance

All staff involved in the allocation, management, and administration of tenancies at SNG are required to read, understand, and comply with this policy. Understanding will be confirmed upon induction and reinforced through annual policy refreshers. Managers will monitor compliance and promptly address any instances of non-adherence. Assurance on compliance and the effectiveness of this policy will be reported regularly to the various Customer committees and forums, as appropriate: Customer and Neighbourhood's Leadership Team (CNLT), Chief Customer Officer Leadership Team (CCOLT), Customer Influence Panel, and/or Executive Board.

7 - Responsibilities

Head of Lettings

  • For reviewing the tenancy policy and reflecting any changes in legislation or approach.
  • For ensuring any training in relation to the Tenancy Policy is completed.

Lettings Support Team

  • Advertising the correct tenancy type for our homes, in line with this policy.
  • Setting up tenancies with the correct tenancy type.

Lettings Officers

  • Offering and producing the correct Tenancy Agreements for customers moving into our General Needs and Housing for Older People homes.

Specialist Housing Team

  • Offering and producing the correct tenancy for our Supported, Temporary, Keyworker and Market Rent homes.

Shared Ownership Team/Legal

  • For generating leases for Shared Ownership customers.

Customer Service Team

  • For ensuring the correct tenancy assignment documents are used for a mutual exchange.

Locality / Neighbourhood Teams

  • For investigating succession cases and ensuring the correct tenancy documents are used and action taken.

Housing Specialist Team

  • For ensuring succession cases are handled correctly.

8 - Equality and diversity

  • We will apply this policy consistently and fairly and will not discriminate against anyone based on any relevant characteristics, including those set out in the Equality Act 2010.
  • At SNG, our commitment is to make sure that no individual or group experiences unfair, discriminatory, or prejudicial treatment in recruitment, pay or promotions, housing, or any other service we provide, such as lettings, tenancy advice, repairs or rent collection
  • SNG strives to be an open, inclusive, and diverse organisation where everyone has a right to be treated with dignity, fairness, and respect. As an organisation we value the diversity and talents of all individuals and the richness that brings to our culture.
  • We understand the varying needs of our residents and communities and promote equality of opportunity in employment and service provision.
  • We deliver appropriate, accessible, and flexible services, being tolerant, understanding and not judging others or their lifestyle choices. We stand up to and challenge prejudice, discrimination, and harassment in all its forms9

9 - Related documents

  • Lettings Policy (and appendices).
  • Mutual Exchange Policy.
  • Succession Policy.
  • Affordable Home Ownership Policy.
  • Domestic Violence Policy.
  • Buy Back Policy.

10 - Legislation and regulation

The legislation listed in this policy is not intended to cover all legislation applicable to this policy. To comply with clause 1.1 of the Regulator of Social Housing’s Governance and Financial Viability Standard, which requires adherence to all relevant law, SNG will take reasonable measures to ensure compliance with all applicable legislation by reviewing policies and procedures and amending them as appropriate. Any queries relating to the applicable legislation should be directed to the policy owner.

Tenancies are determined by law and current tenancy types were introduced by:

  • Housing Act 1980, 1985 and 1988
  • Amended by the Housing Act 1996
  • Further changes were introduced by the Localism Act 2012
  • Immigration Act 2014
  • Deregulation Act 2015
  • Social Housing Regulation Act 2023

We must also comply with the Social Housing Regulator’s Consumer Tenancy Standard.

11 - Review

This document will be reviewed every 2 years, or sooner if significant changes occur in the relevant legal or operational landscape.