Government proposals could see tenants evicted after two years, ending lifetime security in council housing

This article is more than 9 years old

This article is more than 9 years old

Councils are to be given powers to evict or transfer new tenants after as little as two years if their financial circumstances improve, under plans to be unveiled tomorrow.

The proposals would also allow councils greater freedoms to give social housing to people with a strong local connection to the area where they live. In some cases councils are also likely to give preference to the poor in work, as opposed to the unemployed.

The plans are being billed as a way of putting immigrants to the back of waiting lists, although they will still be given a right to accommodation if homeless. Labour claims it had already introduced the local connection rule.

The chief reform, which will end lifetime security in council housing, is likely to be divisive within the coalition.

David Cameron had said in the summer he wanted to end life tenancies for council homes to make way for contracts of five or 10 years for new tenants.

But the period floated by Cameron is now going to be cut back to just two years, so tenants whose financial circumstances have improved could be evicted with six months notice to leave.

At present, people given council homes are awarded an indefinite "secure tenancy" after a 12-month trial.

The danger with the policy is that it will work as a disincentive for a tenant to find well-paid work, since they will lose tenancy.

But Grant Shapps, the housing minster, argues that council homes are an under-used asset, being taken up often by those not in need.

Shelter said tonight the two-year tenancy showed naivity about how quickly people can get back on their feet, and claimed it was the latest in a long line of housing reforms that are beginning to feel like deliberate attacks on council tenants.

The shakeup represents the biggest set of changes to council homes for 30 years, and apparently flies in the face of protests from Simon Hughes, the Liberal Democrat deputy leader.

He told a meeting of the Defend Council Housing at Westminster last month: "The last thing we want is more insecurity. You can't say it builds up community cohesion to threaten the last bit of security in tenants' lives. People and communities need that security."

But the reforms are strongly supported by the Lib Dem minister in the department of communities, Andrew Stunnell. He argues there are 5 million people on council house waiting lists, and current policies have not worked.

Shapps will also end the right of a council house tenant to hand the property over to a member of their family when they die.

According to figures obtained from the department of communities under the Freedom of Information Act, it is estimated that in 2007-08 there was a cumulative total of around 90,000 successor tenants still living in the accommodation after the death of the original tenant. Of these 90,000, 40,000 took over the tenancy after 1997.

Shapps also plans to give councils powers to reject applications from anyone also applying for a home from another council to stop multiple applications.

In other reforms, councils and housing associations will also be able to charge rent of up to 80% of the market rate so that they can raise money to buy new properties.

The changes that apply to England are planned to come into force next year, but would only have a gradual impact since they apply only to new tenancies.