Durham Council Approves Major Overhaul of Social Housing Register...

Social Housing Rules Tightened as Durham Waiting List Passes 10,000

New Durham Key Options policy will introduce a two-year local connection test, tougher rules on refused offers and revised priority bands from February 2027...

4th August 2026

Thousands of housing applicants could be set to see their priority on the register reassessed when Durham County Council introduces a controversial new allocations policy in February 2027.

Durham County Council has approved a major overhaul of the rules governing how social housing is allocated across County Durham amid growing demand, falling property turnover and increasingly lengthy waits for applicants.

The new Durham Key Options Housing Allocations Policy is expected to take effect from the 1st of February 2027, alongside the introduction of a new computer system used to manage housing applications and property allocations.

The new rules will apply not only to new applicants, but also to those already registered with the Durham Key Options scheme. The policy warns that an applicant awarded priority under the existing system may possibly not retain the same band when their circumstances are reassessed under the replacement scheme, however this has led to criticism over the council allegedly "Shifting the goalposts for some applicants”…

More than 10,000 people now seeking housing in County Durham

The changes come as the number of active applicants on County Durham’s housing register continues to rise.

Council figures show that the register increased from 7,686 active applicants in 2020 to 10,238 in 2025—an increase of approximately 25 per cent.

At the same time, its claimed significantly fewer social homes become available.

More than 5,000 properties were let through the scheme during 2014/15, compared with just over 3,000 during 2024/25. That represents a reduction of around 40 per cent over ten years.

Competition for each available home has also increased dramatically. In 2017, properties attracted an average of four bids. By 2024/25, that had risen to an average of 48 bids for every property advertised.

The council partly attributes the rising demand to the cost-of-living crisis, increasing private rents and a reduction in the availability of cheaper privately rented accommodation as scores of landlords sell up either due to the introduction of the Renters Rights Act, or heavily legislated Landlord Licensing Schemes being operated by the local council..

Existing applicants could have their priority changed

Under the new proposals, the four-band system for housing allocation will remain, but the definitions and priority categories within it are being heavily revised.

Under the new structure:

Band 1 will cover urgent or exceptional housing need.

Band 2 will cover high housing need.

Band 3 will cover medium housing need.

Band 4 will cover lower housing need.

Applicants with urgent medical needs, those fleeing domestic abuse and people affected by regeneration schemes will remain among those receiving the highest priority, as well as an additional medical category is also set to be be introduced, creating separate levels for urgent, high and moderate medical need.

Two-year County Durham connection rule

One of the most significant & controversial changes is the introduction of a general requirement for applicants to demonstrate a connection with County Durham. As of next year, applicants will normally need to show that they have lived in the county for at least two years. Alternatively, they may qualify through employment or an essential care connection.

An employment connection will normally require someone to have worked within County Durham for at least six months. Casual, seasonal and voluntary employment will not generally count.

Applicants relying on a care connection must demonstrate an essential need to move closer to someone providing or receiving daily care or support.

There will, however, be important exemptions. The local connection rule will not normally apply to qualifying care leavers, victims fleeing domestic abuse, members and former members of the Armed Forces, or certain applicants owed homelessness duties by Durham County Council.

Tougher rules on refused offers

Applicants will also face a tighter restriction on refusing suitable properties.

Under the current arrangements, an applicant can generally refuse three suitable offers before facing action. The new policy reduces this to two suitable offers within a rolling 12-month period.

Anyone refusing two offers considered suitable could be removed from the housing register for six months.

Exceptions may be made where applicants have particular circumstances, including those waiting for heavily adapted accommodation or larger family homes that rarely become available.

The policy also makes clear that being registered does not operate like joining a conventional queue. Applicants will continue to be shortlisted according to their housing band, assessed need, suitability for the property and priority date.

Fail to Bid….. & You’d Wish You’d Did !

As well as a raft of new measures to make the scheme more strict, applicants placed in Band 4 who fail to bid for any homes for 12 months without good reason may be removed from the register, this is despite claims those applicants may in fact never have any reasonable prospect of being re-housed through the scheme itself.

Applicants in Bands 1, 2 and 3 could also be removed for inactivity, although the council says they will be contacted in advance. Exceptions may be considered for people waiting for adapted properties, unusually large homes or other accommodation that rarely becomes available.

The annual checks are intended to remove inactive applications and provide a more accurate picture of the number of people genuinely seeking social housing.

Rent arrears and housing debts..

Applicants with current or former rent arrears, tenancy-related charges or other housing debts are also set to be disqualified from the scheme as before, with the new policy focusing on debts incurred during the previous six years. Applicants will generally be required to show that they have maintained regular payments towards their debt for at least three months before being allowed back onto the register.

Payments will normally be expected to continue until the debt has been cleared.

The policy also provides additional guidance for applicants affected by bankruptcy or a Debt Relief Order. Those applicants may be required to demonstrate a change in financial behaviour and show that they are managing their finances satisfactorily.

Exceptional circumstances can be considered, including cases where arrears arose through domestic abuse or circumstances outside the applicant’s control.

Unacceptable behaviour rules retained..

Although there is no established law on the legal definition of ‘Unacceptable behaviour’, its claimed Applicants may still be refused access to the register where there is evidence of behaviour considered serious enough to make them unsuitable as a social housing tenant.

Examples include violence, harassment, serious antisocial behaviour, certain drug, sexual or violent offences, discriminatory conduct, abuse of housing staff, previous eviction and deliberately providing false or misleading information.

An applicant disqualified for unacceptable behaviour will normally need to demonstrate a substantial improvement for at least 12 months before being reconsidered.

The policy says each case should be assessed individually, taking account of the seriousness of the behaviour and any evidence supplied by support organisations.

Applicants will have 28 days to lodge the first stage of an appeal against an allocations decision, however the appeals process is said to be controversial in nature & has been heavily criticised in the past as being failing to be independent & failing to review cases impartially.

Consultation attracted hundreds of responses

Nearly 10,000 people registered with Durham Key Options were contacted during the second consultation exercise, which ran between February and April 2026.

The council received 542 online responses and also held meetings with housing providers, public-health representatives, social prescribers, the Armed Forces Outreach Team, children’s services and residents’ groups.

A previous consultation held during 2025 attracted 638 online responses.

Council officers concluded that the final changes arising from the second consultation were relatively minor and could therefore be approved through delegated powers rather than returning to the full Cabinet for a vote.

For applicants, the practical effects could be significant. Every existing application will now eventually have to be transferred onto the new system and assessed against the replacement policy—potentially changing who qualifies, which band they are placed in and how likely they are to secure one of County Durham’s increasingly scarce social homes, with critics claiming the new plans fail to address the concerns over impartiality, housing allocations & newcomers who are deluging the housing system seeing other applicants falling further down the list, some of which have been waiting years for suitable homes…