Mutual exchange for social tenancies
When a social housing tenant can exchange by assigning their tenancy to another tenant.
What is a mutual exchange?
A mutual exchange is where one or more social tenant legally swaps their tenancy with another social tenant.
Mutual exchanges normally take effect by assignment. Each tenant takes on the tenancy and rights of the other tenant. For example, a secure tenant who mutually exchanges with an assured tenant becomes an assured tenant.
A mutual exchange can only take place with the consent of all landlords. A local authority landlord can only refuse permission for a mutual exchange on specific grounds.
Where there is a joint tenancy, all tenants must agree to the exchange.
A mutual exchange is different from a tenancy transfer. Find out more about tenancy transfers on Shelter Legal.
Who can exchange their tenancy
Tenants who can potentially take part in a mutual exchange include:
local authority secure tenants
housing association assured tenants
local authority flexible tenants
some housing association assured shorthold tenants
There is no limit on the number of tenants who can take part in a mutual exchange. For example, three tenants might agree to each assign their tenancies to each other.
Secure tenant exchange rights
A secure tenant can exchange their tenancy by assigning it to:[1]
another secure tenant
a housing association assured tenant
Each tenant assigns their tenancy to the other and takes on the other tenant's security of tenure. For example, a secure tenant who mutually exchanges with an assured tenant becomes an assured tenant.
A mutual exchange requires the consent of both landlords. A local authority landlord can only refuse permission for specified reasons.[2] Find out more about mutual exchange refusal on Shelter Legal.
Flexible tenancies
A flexible tenancy is a type of secure tenancy for a fixed term.[3]
A flexible tenant can exchange their tenancy with another flexible tenant.[4] Each tenant can assign the remainder of their fixed term tenancy to the other tenant.
Find out more about flexible tenancies on Shelter Legal.
Assured tenant exchange rights
A secure tenant has the right to exchange their tenancy with an assured tenant.[5]
The assured tenant's landlord must agree to the exchange. An assured tenant can take part in an exchange, but the assured tenant does not have a specific right to exchange in legislation.
Each tenant assigns their tenancy to the other. For example, an assured tenant exchanging with a secure tenant becomes a secure tenant.
Assignment with the landlord's consent
An assured tenant might be able to assign their tenancy with their landlord's consent.
Most assured tenancy agreements include a clause which states that the tenant cannot assign the tenancy without the landlord's consent. The usual grounds for refusal for mutual exchanges do not apply. The landlord has discretion whether to consent or to withhold consent for any reason, but cannot refuse consent unreasonably.[6]
Find out more about assignment of a tenancy on Shelter Legal.
Exchanges with flexible or assured shorthold tenants
A secure tenant or an assured tenant whose tenancy began before 1 April 2012 can also exchange their tenancy with either a:[7]
local authority flexible tenant
housing association assured shorthold tenant
The secure tenant or assured tenant retains their lifetime security of tenure. Each tenant surrenders their tenancy and is granted a tenancy with the new landlord matching their original security.[8] This process was introduced by the Localism Act 2011.
For example, a secure tenant exchanging with an assured shorthold tenant could become an assured tenant and the assured shorthold tenant could become a fixed term flexible tenant.
Each tenant wishing to exchange must make a request in writing to their landlord.
The landlord can only refuse consent on limited grounds.[9] Find out more about mutual exchange refusal on Shelter Legal.
Assured shorthold tenancy requirements
An assured shorthold tenant who takes part in an exchange with a secure or assured tenant must have a tenancy which is:[10]
a fixed term tenancy for two years or more
not an affordable rent, intermediate rent, mortgage rescue rent or shared ownership rent
An assured shorthold tenant with a fixed term of less than two years can only take part in a mutual exchange if each landlord gives permission.
Secure tenancies which began after 1 April 2012
A secure tenant whose tenancy began after 1 April 2012 might still be able to exchange their tenancy with a flexible or assured shorthold tenant.
The secure tenant cannot retain their security of tenure. The secure tenant would become either a flexible or assured shorthold tenant.
Secure tenancy exchange with a flexible tenancy
A secure tenant whose tenancy began after 1 April 2012 could exchange their tenancy with a flexible tenant. The exchange would take place by assignment under section 92 of the Housing Act 1985 as a flexible tenancy is a fixed term type of secure tenancy.[11]
The secure tenant cannot retain their security of tenure. Secure tenants whose tenancies began after 1 April 2012 who want to exchange with a flexible tenant should consider carefully the impact of losing a lifetime tenancy.
Secure tenancy exchange with assured shorthold tenancy
A secure tenant whose tenancy began after 1 April 2012 could exchange with an assured shorthold tenant. The exchange would take place by assignment under section 92 of the Housing Act 1985.[12]
The assured shorthold tenant must get permission from their landlord to exchange.
The secure tenant cannot retain their security of tenure. Secure tenants whose tenancies began after 1 April 2012 who want to exchange with an assured shorthold tenant should consider carefully the impact of losing a lifetime tenancy.
In practice, the landlord of the assured shorthold tenant might not give consent to the exchange. Assured shorthold tenancies can be ended on no-fault grounds under section 21.
When consent to exchange can be refused
A landlord can only refuse consent for a mutual exchange on specific grounds, for example when the:
tenant has rent arrears or is in breach of their tenancy
tenancy is subject to a possession order or court proceedings
property is not suitable, for example, if it is too large for the proposed assignee
Find out more about mutual exchange refusal on Shelter Legal.
Table: Who can exchange?
| First tenancy | Second tenancy | Can they exchange? | Legislation |
|---|---|---|---|
| Secure tenancy | Secure tenancy | Yes, subject to grounds for refusal | s92 Housing Act 1985 |
| Secure tenancy | Assured tenancy | Yes, subject to grounds for refusal | s92 Housing Act 1985 |
| Flexible tenancy | Flexible tenancy | Yes, subject to grounds for refusal | s92 Housing Act 1985 |
| Secure tenancy which began before 1 April 2012 | Flexible tenancy | Yes, secure tenant retains security of tenure if their tenancy began before 1 April 2012. Subject to grounds for refusal | s159 Localism Act 2011 |
| Secure tenancy which began before 1 April 2012 | Assured shorthold tenancy | Yes, secure tenant retains security of tenure if their tenancy began before 1 April 2012. Subject to grounds for refusal | s159 Localism Act 2011 |
| Assured tenancy which began before 1 April 2012 | Flexible tenancy | Yes, assured tenant retains security of tenure if their tenancy began before 1 April 2012. Subject to grounds for refusal | s159 Localism Act 2011 |
| Assured tenancy which began before 1 April | Assured shorthold tenancy | Yes, assured tenant retains security of tenure if their tenancy began before 1 April 2012. Subject to grounds for refusal | s159 Localism Act 2011 |
| Assured tenancy which began after 1 April 2012 | Assured or assured shorthold tenancy | No right in legislation. Dependent on what the tenancy says about right to assign and landlord's consent | Not in legislation |
Last updated: 29 August 2024