Royal Greenwich improved incentive scheme for under-occupying tenants now open

Under-occupying tenants in Royal Greenwich who want to downsize to a smaller home can now apply for a bigger cash incentive of £1000 per bedroom to move to a home that better meets their needs.   

These changes are intended to free up larger homes for families living in overcrowded conditions and is one of the ways we’re tackling the housing crisis. They will now be subject to a one-year pilot having been agreed at a Cabinet meeting in March.  

A council spokesperson said: “Our new package of financial incentives will be available to under-occupying residents who want to downsize to a smaller home and help many families in overcrowded conditions move to a safe and secure home that meets their needs.  

“If you know of anyone, including under-occupying tenants in housing association homes, who could benefit from this scheme then please ask them to get in touch with us.” 

The changes include a big increase in the payment made to a downsizing tenant for each bedroom given up, which has increased from £350 to £1,000. For those who want to downsize by mutual exchange they will also be able to receive an additional £500.  

They also mean that all under-occupiers looking to downsize will be placed in the highest priority band on the housing register (Band A) so they can find a new home as soon as possible. 

For the first time in Greenwich, under-occupying housing association tenants will be able to receive the financial incentives that were previously only available to council tenants. 

To make the process as easy as possible for tenants, the Council has also created a new, dedicated Under Occupation Adviser role for the scheme. This officer will be supporting under-occupiers to downsize, with a particular focus on older tenants.  

Below is a summary of changes that came into effect from 1 October 2024:
   
Payment per bedroom released 
Tenants can receive £1,000 per bedroom released to downsize to a smaller property. This is £650 more than the previous payment of £350. 

Highest priority band 
Council tenants and those in housing associations who are looking to downsize will be placed in the highest priority band, Band A, so they can find a new home as soon as possible.  

Downsizing by mutual exchange 
An additional £500 will also be offered to those who downsize by mutual exchange. 

Older people 
Older tenants who want to downsize will be eligible for a room for themselves plus one extra bedroom. This would only apply to those who have reached Pension Credit age and are exempt from the bedroom tax and could mean that some older tenants could continue to benefit from a spare room for a carer or family support overnight. 

Non-dependent adults 
A non-dependent adult living with an under-occupying tenant who wants to downsize and is their parent, can be offered their own one-bedroom flat, providing the Council can gain back an additional bedroom. 

For example, a 50-year-old mother living in a 3-bedroom home with her 30-year-old daughter could each move to their own one-bedroom flat, as the Council would still gain one additional bedroom from the moves. 

Housing association tenants 
Under-occupying housing association tenants in Royal Greenwich will now receive the financial incentives that were previously only available to council tenants. They will also be placed in the highest priority band, Band A. 

Removal costs 
To help ease the pressure of paying for removal costs, the Council can also arrange and pay reasonable removal costs for those who agree to downsize to a smaller home. 

For more information 
If you would like to find out more about this scheme, please email the Allocations Team or visit our webpages on how you can move to a smaller home.