Mutual exchange policy

Requirements

This Policy sets out the council’s requirements and expectations that apply to mutual exchanges:

  • The condition of all North Tyneside Council properties involved in the mutual exchange will be checked by the council, prior to approving a mutual exchange, to ensure it meets acceptable standards. For clarity the condition of the property relates to repairs and safety, tenant alterations undertaken without permission and damage beyond fair wear and tear.
  • We will promote the mutual exchange scheme through our mutual exchange platform provide guidance to tenants seeking to exchange.
  • We may refuse a mutual exchange request based on the grounds set out in the Housing Act 1985 and the Localism Act 2011.

5.1 Condition of Property, Repairs and Responsibilities

Work identified during the inspection or disclosed by the tenant will be discussed with the outgoing and incoming tenant, to decide what work will be completed prior to the exchange. Where a tenant has breached the tenancy agreement, the consent to a mutual exchange maybe granted subject to the breach being remedied, and any outstanding tenancy obligations being fulfilled. 

If significant damage is caused to either property between the date of the inspection and the exchange taking place, the council reserves the right to recharge an outgoing council tenant for remedial work required.

At the point of the exchange, the outgoing tenant is responsible for removing all of their belongings and rubbish from the property, including loft space, garden, out buildings, shed, garage and any other external storage areas. 

The incoming tenant takes over the rights and responsibilities of the tenant they have exchanged with. Repair responsibilities become the incoming tenant’s responsibility. The incoming tenant accepts the property in its existing condition (subject to the above) and will be responsible for the following:

  • Decoration, repairs and any improvements or alterations the previous tenant has made. The incoming tenant may be charged for repairs, so it is important to view the whole property and check its condition.
  • The incoming tenant is responsible for ensuring that they receive all keys for windows, external entrance doors, including communal entrance doors or shared access doors from the outgoing tenant when the exchange takes place. The incoming tenant is responsible for keeping them safe and may be charged for any lock change if keys are missing.  The incoming tenant is responsible for organising and the cost of duplicate sets of keys.
  • Tenants are responsible for the plumbing of washing machines and dishwashers. A qualified and competent plumber must carry out any installation, as the incoming tenant will be responsible for any damage resulting from leaks or faulty pipework.
  • Tenants arranging their own cooker must use a Gas Safe registered engineer for gas appliances or a NICEIC registered electrician for electric connections. The council will not fund the extension or installation of gas piping; this is the responsibility of the incoming tenant. Tenants should also ensure they are aware of the type of connection available in the property before installation.
  • Council tenants must always obtain the council’s written approval before making any improvements or alterations to a council property. Refer to tenancy agreement.

5.2 Number of Bedrooms

Households are generally allocated bedrooms according to the Lettings Policy. However, mutual exchange applicants may be allocated one bedroom above their assessed need, as their eligibility criteria do not follow the standard Lettings Policy.

Mutual exchanges will not be approved in the following circumstances:

  • Where the property a tenant wishes to move to is substantially larger than required (by two bedrooms or more, beyond any allowance for mutual exchange).
  • Where the property is insufficient to meet the needs of the incoming household.

Some properties may include additional rooms that can be used as bedrooms. In such cases, the suitability of the property will be assessed on an individual basis.

5.3 Applying for a Mutual Exchange 

North Tyneside Council tenants can register free of charge with the mutual exchange provider to help search for a swap.  This service allows tenants to search for and identify potential mutual exchange properties. 

Tenants may also seek exchanges via social media or local adverts; however, registration with the mutual exchange provider is mandatory for all mutual exchanges.

Once a potential mutual exchange has been identified, an application form must be completed by both parties before the exchange can be considered by the council and any other relevant social landlord.

5.4 Timescales for Decision

The statutory 42-day decision period will begin once the council has received a completed mutual exchange application from all parties.  Tenants will receive written confirmation of consent or refusal, including the reasons for any refusal.

If the exchange is approved, tenants will receive a letter of confirmation and be given an appointment to sign the deed of mutual exchange assignment, which is the legal document required to transfer the tenancy.

If the incoming tenant is not a current council tenant, we will liaise with the registered social landlord and carry out appropriate tenancy checks. 

5.5 Grounds for Refusal

Where a tenant is in rent arrears and/or has otherwise breached the tenancy agreement, the landlord’s consent to a mutual exchange can be made conditional upon payment of the arrears, remedy of the breach or performance of an outstanding obligation.

Secure Tenancies

A mutual exchange may be refused where, in respect of the tenant or Swap Partner’s property:

  • A possession order has been granted
  • Possession proceedings have commenced on one or more of the grounds set out at Grounds 1 – 6, Sched 2, HA 1985, or under s84A HA 1985
  • A Notice of Seeking Possession has been served on either basis set out above, and has not yet expired (valid for a 12-month period)

It may also be refused where the tenant, Swap Partner or a person residing with either of them is subject to:

  • Demotion order
  • Riot-related possession order (including suspended orders)
  • Anti-social behaviour possession order (including suspended orders)
  • Injunctions under s152 HA 1996, s153 HA 1996 (with power of arrest), s153A, s153B or s153D HA 1996, s1 ASBCPA 2014 (with power of arrest)
  • Anti-social behaviour order under s1 CDA 1998
  • Criminal behaviour order under s22 ASBCPA 2014

Additionally, it may be refused where either property is:

  • Subject to a closure order or closure notice;
  • Substantially more extensive than is reasonably required by the Swap Partner;
  • Not reasonably suitable to the needs of the Swap Partner;
  • Used mainly for purposes other than housing and in consequence of employment;
  • Specially adapted for disabled persons where the Swap Partner does not require such adaptations;
  • Part of a group of properties let to persons with special needs due to proximity to a social service / special facility and the Swap Partner does not have such needs.

All refusals will be provided in writing, with clear reasons and information on the next steps. A refusal will not affect a tenant’s right to apply for mutual exchange in the future.

5.6 Conditional Consent 

In some cases, where a tenant has breached their tenancy agreement, but no legal action has been taken, we may grant consent for a mutual exchange subject to certain conditions. These conditions could include, for example:

  • Clearing any rent arrears;
  • Repairing any damage caused to the property.

Where conditional consent is granted, it will be provided in writing, specifying the actions the tenant must complete before the exchange can be finalised.