Council tenants keep social housing for life – even if they earn £100k
Westminster City Council has announced it is bringing back lifetime contracts for all its new and existing tenants, and scrapping fixed-term five-year tenancies.
It means council house residents will have an automatic right to keep their home regardless of how much they go on to earn.
Lifetime tenancies, also known as secure housing placements, are offered as the default by almost all local authorities after the previous Conservative government's bid to scrap them in 2015 was shelved.
The town hall said the move would tackle 'housing insecurity' and develop stronger communities in the central London borough.
But critics warned that people who go on to become 'high earners' would be able to continuing to live in taxpayer-subsidised homes permanently.
Although councils usually conduct income checks on housing applicants, they are typically allowed to earn more after being approved for a property.
Westminster's new policy recommends providers offer accommodation for life following a 12-month introductory period, replacing five-year fixed-term tenancies.
After the death of a council house tenant, a property can be passed down to the council by their spouse, child or another member of the family.
Paul Swaddle, the Conservative leader of Westminster council's opposition, warned that the move 'risks turning council homes into a permanent asset for the few, rather than a vital safety net for those who need them'.
However, campaigners welcomed the revelation as a 'positive step'.
Mairi MacRae, director of campaigns and policy at Shelter, said: 'Once a family moves into a social home, they should have the peace of mind that they can plan for their future without having to worry about their housing situation changing suddenly.'
Council house tenants will be given a lifetime guarantee that they can remain in a property, so long as they meet the conditions of their tenancy agreement, such as meeting rent payments and not engaging in anti-social behaviour.
Cllr Swaddle said: 'Westminster has some of the longest housing waiting lists in the country.
'We should be helping those most in need [and] not creating a system where high earners can hold onto council homes for life, regardless of changing circumstances while others wait for years in temporary accommodation.'
In 2012, a coalition government gave local authorities the discretion to not offer lifetime tenancies. However, take-up among councils was low.
The Conservatives went further by trying to scrap them altogether in 2015, but eventually shelved the plans.
It remains the predominant form of council housing today. Lifetime tenancies made up 89.9pc of new council lettings in the year ending March 2024, according to official figures.
Meanwhile, the borough – which Labour won control of for the first time in 2022 – is embarking on a radical shake-up of its housing policy.
Residents who are second home owners were recently hit with double council tax, while owners of long-term empty properties must now pay 300pc higher tax bills. An average Band D property in Westminster currently pays £1,017 a year in council tax.
Separately, the council is lobbying ministers for greater powers to take possession of properties that have been empty for six months or longer and use them as council housing. Local authorities must currently wait two years before they can begin the legal process of possessing an empty property.
Adam Hug, the leader of Westminster City Council, said: 'We're giving our residents the long-term security they deserve.
'A safe, stable home is the foundation for building a stronger community – and this change ensures tenants can plan for their futures with peace of mind.
'There will be no changes to rent, tenancy rights or the services residents receive and the council will work with tenants to ensure a smooth transition.'
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