House Exchange Rules

Published By Council Exchange, 18th October 2024

Mutual exchange, or home swapping, is an excellent way for council and housing association tenants to move into homes that better suit their needs. However, there are specific rules and regulations that tenants must follow to ensure the exchange is legal and goes smoothly. In this guide, we'll cover the key rules you need to be aware of when considering a mutual exchange.

Who Can Participate in a Mutual Exchange?

Mutual exchange is generally available to tenants who hold secure or assured tenancies. However, there are different types of tenancy agreements, and the rules may vary depending on the type you have:

Secure Tenants: Council tenants who have been granted a secure tenancy usually have the right to exchange with another secure or assured tenant, with the landlord’s permission.
Assured Tenants: Tenants of housing associations who have an assured tenancy can also swap with another tenant, provided they get permission from their landlord.
Flexible or Fixed-Term Tenants: Some tenants have fixed-term tenancies (e.g., 5 years). These tenants may also have the right to swap, but specific conditions will apply depending on their landlord's policies.
Introductory or Starter Tenants: These tenants typically cannot exchange homes until they are granted a secure or assured tenancy after a probationary period.

Key Rules for Mutual Exchange

Although mutual exchange is widely supported, there are several important rules to follow to ensure the exchange is legally valid:

1. Get Permission from Your Landlord

The most important rule is that both tenants involved in the swap must get permission from their respective landlords before moving. This permission is granted in writing, and the landlords will assess the exchange before approving it. You cannot legally swap homes without their consent.

2. Ensure Your Tenancy is in Good Standing

Landlords are unlikely to approve a mutual exchange if you have any outstanding rent arrears or if you've breached your tenancy agreement in some way. It's essential to ensure you're up to date on rent payments and have no significant violations, such as property damage or anti-social behavior complaints.

3. Property Condition Must Meet Standards

Before approving the exchange, your landlord may inspect your home to ensure it's in good condition. If there are issues like damage or neglect, you may be required to fix these problems before the exchange can go ahead. The new tenant will inherit any maintenance responsibilities, so both properties must meet the necessary living standards.

4. Avoid Overcrowding or Under-Occupancy

When exchanging homes, the new property must be appropriate for your household size. This means the home you swap into should not lead to overcrowding or under-occupancy. For example, if you're a single person moving into a large family home with multiple bedrooms, the landlord may refuse the exchange on the basis that the property is too large for your needs.

5. Tenants Must Move at Their Own Expense

One key rule in mutual exchange is that the tenants are responsible for organizing and funding their own move. This includes any moving costs, transportation of belongings, and other logistics. Make sure you plan your move carefully and budget for these expenses.

6. Agree to Accept the New Tenancy

When you exchange homes, you will take on the new tenancy of the property you're moving into, including all the rights and responsibilities that come with it. This means you must agree to accept the terms of the new tenancy, which could be different from your current one. For example, if you're moving into a property with a different rent structure or tenancy type, you must be prepared to accept those conditions.

7. No Subletting Without Permission

If either party is subletting a portion of their home or taking in lodgers, this must be disclosed to the landlord during the mutual exchange process. Subletting without permission is often grounds for denying the exchange, and it could result in eviction in severe cases. Always ensure that you're complying with the terms of your tenancy agreement regarding subletting.

8. Both Properties Must be Permanent Homes

Mutual exchanges are only allowed between tenants whose homes are their permanent residences. Temporary accommodation or properties that are not considered permanent homes are not eligible for exchange. You cannot exchange homes if one of the properties is a second home, a holiday let, or a property held temporarily.

9. Legal Grounds for Denial

There are certain legal reasons why a landlord may deny a mutual exchange application, even if both tenants meet the general criteria. Some of these reasons include:

Rent arrears or unpaid charges.
Significant breaches of the tenancy agreement.
If the swap would result in overcrowding or under-occupancy.
If one or both properties are due for redevelopment or demolition.
If a legal order (such as an anti-social behavior order) is in place against one of the tenants.

How to Apply for Mutual Exchange

Applying for a mutual exchange involves a formal process with your landlord. Here's how it typically works:

Find a Swap Partner: Start by finding another tenant who is willing to exchange homes with you. This can be done through online housing swap websites or local social networks.
Submit a Request: Once you’ve found a match, both you and the other tenant must submit a mutual exchange request to your landlords. This usually involves filling out an application form and providing details about the swap.
Landlord Review: Your landlord will review the application, checking your tenancy status, property condition, and whether the exchange complies with housing regulations.
Property Inspection: In many cases, the landlord will inspect both properties to ensure they meet the required standards.
Approval or Denial: If everything checks out, the landlord will issue written approval for the exchange. If there are issues, they will notify you of the reasons for denial.
Complete the Swap: Once approved, you and the other tenant can agree on a move date and proceed with the exchange. Ensure all tenancy agreements are signed before moving in.

Conclusion

Mutual exchange is a great way for council and housing association tenants to move to a more suitable home without waiting on long housing lists. However, following the rules and regulations is essential to ensure the exchange goes smoothly and is legally binding. Make sure you get permission from your landlord, meet the eligibility criteria, and ensure your home is in good condition before proceeding with the swap. By understanding the rules, you can successfully navigate the mutual exchange process and find a home that better fits your needs.