| Author | Emma Foster |
|---|---|
| Scope | Mutual Exchange Policy |
| Purpose | This policy sets out our approach to customers who may want to swap their home with another person |
| Approval | |
| Review | May 2028 |
Introduction
A mutual exchange is a process where two or more social housing tenants legally swap their homes by assigning their tenancies to each other. This is often done to better meet the needs of the tenants, such as moving to a larger or smaller home or moving to a different area.
Purpose
This policy sets out our approach to customers who may want to exchange homes with another resident. MCC Housing Services want to promote mutual exchange as an excellent choice for residents who want to move. There is a possibility for residents to legally exchange their homes with another resident that lives within an MCC property, or another council or other registered provider's home.
The aims of the policy are to:
- Make clear the responsibilities of both MCC Housing Services and our residents
- Make clear that mutual exchanges are only allowed with the written consent of both/all landlords and in line with legislation, policies, and procedures.
Responsibility
All applications for a mutual exchange will be processed by the allocated Housing Officer with oversight from the designated Housing Manager.
Policy
To support our residents to find a mutual exchange partner we provide free access to House Exchange. This is a web-based service that residents can use to seek an exchange partner anywhere in the country. This service is accessed through www.houseexchange.org.uk. Residents that wish to use this service need to register online. An application to appear on house exchange is subject to approval by Housing Services. This approval will be given by the Rehousing Team and will be subject to the same conditions by which consent for a mutual exchange may be refused.
We also have a Facebook page that our residents can use called Manchester Housing Services Swap Shop.
A mutual exchange is a procedure which allows secure tenants of the Council, or other Councils, ALMOs, or other Registered Providers to swap homes and tenancies with each other. The method by which a tenant swaps homes with another tenant is through a legal process known as assignment.
In all cases permission of the landlord is required before a mutual exchange can take place. If a tenant carries out a mutual exchange without this permission, then they will no longer be a secure tenant, and legal action may be taken to recover the property.
The law relating to mutual exchanges is contained within the Housing Act 1985. Section 92 of this Act provides that is it is a term of every secure tenancy that the tenant may, with the consent of the landlord, assign the tenancy to another secure tenant who also has the written consent of their landlord. The Local Government Act and the Housing Act 2004 extended the right allowing secure tenants to assign the tenancy with assured tenants of Housing Association.
The consent for a mutual exchange cannot be withheld except on one of more grounds set out in Schedule 3 of the Housing Act 1985 (as amended by the Housing Act 2004). We can therefore refuse permission for the tenant to assign their tenancy to a mutual exchange partner for one of the following reasons.
- The tenancy is subject to a legal order.
- The tenancy is subject to a current notice of seeking possession.
- Legal Action has been taken against the tenant because of Anti-Social Behaviour, or the matter is waiting to be heard before the courts.
- The property that the resident wishes to move to is too large for their needs. Other than in exceptional circumstances an exchange will not be allowed where this leads to either party having more bedrooms than they need. We will use the bedroom standard in the current MCC Allocations Policy to measure this.
- The property that the tenant wants to move to is too small for their needs. We will use the bedroom standing in the current MCC Allocations Policy to measure this.
- The property was let because of employment and forms part of, or is in the grounds of a non-housing building.
- The property has features which make it particularly suitable for people with disabilities or the property is one of a group let to people with additional needs with specific facilities nearby and the exchange would result in no one with the relevant needs being in occupation.
- The property is a sheltered property (known as Independent Living Scheme), and the exchange would result in no one with the relevant needs being in occupation.
We have 42 days from receipt of the mutual exchange application to provide the applicant with a written answer. We may not rely on any of the above grounds unless we have within 42 days of the application for consent served on the tenant a notice specifying the ground and giving particulars of it. Should the tenant not be informed on the grounds of refusal within 42 days then they may proceed with the exchange.
We can attach reasonable conditions to any application, and these must be met before the exchange can take place. Examples of these are:
Where rent lawfully due from the tenant has not been paid or an obligation of the tenancy has been broken or not performed such as alternations or repairs that are required that are the responsibility of the tenant approval and consent may be granted subject to a condition requiring the tenant to remedy a breach of the terms of the tenancy or perform an obligation of the tenancy.
Permission may be granted for an exchange, but the tenant cannot move until, for example, they pay any outstanding rent, or carry out certain repairs, or pay for any outstanding rechargeable repairs.
Permission may be granted for an exchange, but the tenant cannot move until a Gas Safety Test and Electrical Installation Condition Report have been completed and any required remedial works have been completed.
Permission may be granted for an exchange, but the tenant cannot move until there is a valid Energy Performance Certificate (EPC).
Should there be any doubt as to whether a condition is reasonable the Housing Officer will consult the Housing Manager.
We may not agree to impose conditions in circumstances where a tenant is moving to smaller accommodation, is fleeing domestic abuse, or has been the victim of serious anti-social behavior or harassment. The Housing Officer should consult the Housing Manager in these circumstances who will have the final say as to whether conditions do not need to be imposed.
We will not consider an application to assign a tenancy by way of an exchange from a resident holding an introductory tenancy. Once the tenancy has become secure and all the conditions are met then the exchange can take place.
The rent charged to the incoming resident will be the rent charged to the current tenant.
We will not give consent for an exchange to allow a single person to move to a two bedroomed house. Such a house with the garden areas would be more extensive than is required by a single person, however we may allow an exchange to a two bedroomed flat by a single person, even if we consider the flat to be family type accommodation.
Tenants with disabilities whose home has been adapted may wish to exchange to a property without adaptations, Provided that we are satisfied that the adapted property will be occupied by a person in need of such accommodation and the accommodation to be occupied by the disabled person is reasonably suitable to the needs of the proposed assignee and their family then the exchange may be approved subject to all other matters being satisfactory. The outgoing tenant should be advised that the property they intend to move to will not be suitable for their needs and they may face an extraordinarily long wait for any required adaptations. The Housing Officer should consult the Housing Manager in these circumstances.
See Appendix 1 for procedure guidance.
Revision history
| Version | Date | Author | Description of change |
|---|---|---|---|
| 2 | May 2025 | Emma Foster | Removed reference to Northwards Housing and slight amendments to text/terminology |
Appendix 1
| Author | Emma Foster |
|---|---|
| Scope | Mutual Exchange Procedure |
| Purpose | This procedure sets out process for managing mutual exchange applications |
| Approval | |
| Review | October 2027 |
- The tenant submits an application for a mutual exchange. This can be done via post, counter or online. The Customer Services Assistant uploads the application to QL and sends a workflow process through to the HDO Work Tray.
- If the Housing officer is in work, then this will be allocated to their individual work tray and will trigger the acknowledgement letter via the QL workflow process.
- Initial checks are carried out by the Housing Officer to check that there are no reasons that the exchange cannot go ahead. These checks will include arrears, disrepair, legal proceedings, property size, ASB etc. The Housing Officer will also liaise with the Landlord of the homes involved in the mutual exchange where necessary.
- If there is reason to refuse the request for a mutual exchange as listed in the policy a letter should be sent to the applicant via the workflow process to refuse this request. The workflow process should then be closed on QL.
- The Housing Officer should check the HM government energy performance website to ensure that there is a valid EPC, Find an energy certificate - GOV.UK. If there is no valid EPC an order must be raised to request one. A copy of the valid EPC should be given to the incoming resident at the time the exchange paperwork is completed. SOR code to order EPC is 99000051.
- If the application can proceed the Housing Officer should contact the applicant to make an appointment to attend the home to undertake a property inspection. A letter should be sent to the resident to confirm the appointment via the workflow process. If any other alternative written communication is used, then a copy of this should be saved within the QL Tenancy archive.
- During this home visit the Housing Officer should inspect all rooms and take photographs. Any areas of concern including visible damage or home improvements should be discussed with the resident and agreements made for a resolution. The Housing Officer should complete the exchange checklist. All pictures and inspection form should be uploaded to QL Tenancy archive.
- The Housing Officer should also confirm all the details included on the application form to ensure that we have accurate information of all involved in the moving groups so we can be certain that homes will not be under or over occupied. The Housing Officer should advise the resident that appointments will be made to undertake an EICR and LGSR at the home. Access must be given to allow these checks to be completed. Failure to allow access for these important checks may delay the exchange going ahead.
- Following the home visit the Housing Officer must email mccelectrical.servicing@manchester.gov.uk to request an EICR is completed. We also need to raise a job for a Gas spec 2 via the repair's application using code 42h01022. Ideally where possibly this appointment should take place within 1 week due to the time constraints) of the application process.
- After the date agreed with the tenant for the EICR and LGSR appointment has passed the Housing Officer should undertake final checks to ensure that the application can proceed. These checks will include arrears, disrepair, legal proceedings, property size etc. These checks should also include checking that a ‘satisfactory’ EICR and a valid LGSR are in place, and that a valid EPC is available. The relevant service will be responsible for ordering any necessary follow-on works.
- The Housing Officer should satisfy themselves that there are no legitimate reasons that the exchange application cannot go ahead. The Housing Officer should also ensure that the Housing Manager is made aware of any conditions that need to be attached to the approval, and this is referred to the Housing Manager for a final review and sign off.
- The Housing Manager will approve the application via the QL Workflow process.
- The Housing Officer contacts the applicants and advises them that the application has been approved and arranges appointment to sign up.
- The Housing Officer completes all the paperwork and completes the changes on QL to reflect the mutual exchange.
