DEPUTYSHIPS

Tenancy agreement signing & termination for adults who lack capacity

ILBP Deputies support local authorities where a vulnerable adult lacks capacity to sign or end a tenancy agreement, and no lawful authority is in place.
We ensure tenancies are signed or terminated through the correct Court authorised route, preventing avoidable arrears, placement delays and unnecessary financial exposure.

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Why do tenancy agreements become a risk when capacity is lacking?

Under the Mental Capacity Act 2005, tenancy agreements cannot be signed or ended on behalf of a person unless lawful authority is in place, for example a Property & Affairs LPA, a Court appointed Deputy, or a specific Court of Protection order. A best interests decision alone does not authorise signing or ending a legal contract.
At an average social housing rent of £120 to £180 per week, an unoccupied tenancy can cost between £6,000 and £9,000 every year if it is not lawfully brought to an end. The tenancy remains legally active and landlords continue to request rent despite the property being unoccupied. Failure to address tenancy issues promptly can leave vulnerable adults exposed to avoidable debt, rent arrears and financial hardship at a time when they are least able to protect their own interests.

Common risks and impacts

Financial exposure

Rent arrears accruing indefinitely until resolved.
Housing Benefit ceasing while rent liability continues.
Utility costs accruing for vulnerable adults.
Local authority ultimately covering the outstanding costs.

Placement delays

Landlords require signed tenancies before occupation.
HB teams often won’t process claims without a signed agreement.
Hospital and placement timelines can be delayed.
Risk of missed placements and additional costs.

Council risk at scale

Across multiple cases, delays can expose councils to significant financial risk, potentially amounting to tens of thousands of pounds per week depending on the caseload and rent levels.

The correct route: Court authorised signing or termination

Where a person lacks capacity and no authorised deputy is in place, a Court application is required. While the Mental Capacity Act allows some decisions to be made without formal authority, this does not extend to signing legal documents, such as tenancy agreements.
SOCIAL WORKERS

How to refer tenancy agreement signing & termination to ILBP

A simple step by step guide for Social Workers.
Step 1

Complete capacity assessment

Complete a capacity assessment (COP3) around the vulnerable adult’s understanding of contractual agreements, including tenancy agreements.
Step 2

Obtain tenancy agreement and supporting evidence

Obtain the tenancy agreement and any supporting evidence such as a rent statement of account or DoLS.
Step 3

Complete ILBP tenancy agreement referral form

Complete the ILBP tenancy agreement referral form and provide all requested information.
Step 4

Pay ILBP invoice

Please note: Local authorities may choose to fund the application upfront, with any recovery from the individual managed through their own internal financial assessment and charging processes where appropriate.
Step 5

ILBP submits an application to the court

Court fees may be reduced or waived if the person meets the savings and applicable income or benefit criteria. Savings thresholds are:
Under age 66: less than £4,250 in disposable capital or savings.
Age 66 or over: £16,000 or less in disposable capital or savings.
Supporting bank statements are required.
Step 6

ILBP deals with the tenancy arrangements and safeguards the vulnerable adult

Once appointed, ILBP will manage the tenancy arrangements and take appropriate action to protect the individual’s home and financial wellbeing.

We’re here to help

If you have any questions about the referral process or need support at any stage, please contact the ILBP team.

How this helps social workers and councils

Protects vulnerable adults from avoidable arrears and debt.
Reduces financial exposure and unplanned costs for the local authority.
Reduces administrative burden on social workers and housing teams.
Improves compliance with the Mental Capacity Act 2005.
Helps secure placements and Housing Benefit processing without delay.

Fees & costs

ILBP Deputies fee

Signing or ending tenancy agreements: £250 + VAT

Court of Protection fee

Standard court fee: £432
This may be reduced or waived if the person meets the savings and applicable income or benefit criteria.
Under age 66: less than £4,250 in disposable capital or savings.
Age 66 or over: £16,000 or less in disposable capital or savings.
Supporting bank statement required.

Deputies contact details

For tenancy signing or termination support, contact ILBP Deputies to discuss your case or arrange a referral.
Address
ILBP Deputies Ltd, Suite 8, Station House, Rawtenstall, BB4 6AJ

Case studies

Examples of how deputyship and specialist financial management work together to protect clients and support professional teams.

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