diff --git a/client/peerset/src/lib.rs b/client/peerset/src/lib.rs
index eefab81b851da..19260afccb802 100644
--- a/client/peerset/src/lib.rs
+++ b/client/peerset/src/lib.rs
@@ -39,7 +39,7 @@ use futures::prelude::*;
 use log::{debug, error, trace};
 use serde_json::json;
 use std::{collections::HashMap, pin::Pin, task::{Context, Poll}, time::Duration};
-use wasm_timer::Instant;
+use wasm_timer::{Delay, Instant};
 use sp_utils::mpsc::{tracing_unbounded, TracingUnboundedSender, TracingUnboundedReceiver};
 
 pub use libp2p::PeerId;
@@ -252,6 +252,9 @@ pub struct Peerset {
 	created: Instant,
 	/// Last time when we updated the reputations of connected nodes.
 	latest_time_update: Instant,
+	/// Next time to do a periodic call to `alloc_slots` with all sets. This is done once per
+	/// second, to match the period of the reputation updates.
+	next_periodic_alloc_slots: Delay,
 }
 
 impl Peerset {
@@ -279,6 +282,7 @@ impl Peerset {
 				message_queue: VecDeque::new(),
 				created: now,
 				latest_time_update: now,
+				next_periodic_alloc_slots: Delay::new(Duration::new(0, 0)),
 			}
 		};
 
@@ -699,6 +703,14 @@ impl Stream for Peerset {
 				return Poll::Ready(Some(message));
 			}
 
+			if let Poll::Ready(_) = Future::poll(Pin::new(&mut self.next_periodic_alloc_slots), cx) {
+				self.next_periodic_alloc_slots = Delay::new(Duration::new(1, 0));
+
+				for set_index in 0..self.data.num_sets() {
+					self.alloc_slots(SetId(set_index));
+				}
+			}
+
 			let action = match Stream::poll_next(Pin::new(&mut self.rx), cx) {
 				Poll::Pending => return Poll::Pending,
 				Poll::Ready(Some(event)) => event,
@@ -907,4 +919,45 @@ mod tests {
 
 		futures::executor::block_on(fut);
 	}
+
+	#[test]
+	fn test_relloc_after_banned() {
+		let (mut peerset, handle) = Peerset::from_config(PeersetConfig {
+			sets: vec![SetConfig {
+				in_peers: 25,
+				out_peers: 25,
+				bootnodes: vec![],
+				reserved_nodes: Default::default(),
+				reserved_only: false,
+			}],
+		});
+
+		// We ban a node by setting its reputation under the threshold.
+		let peer_id = PeerId::random();
+		handle.report_peer(peer_id.clone(), ReputationChange::new(BANNED_THRESHOLD - 1, ""));
+
+		let fut = futures::future::poll_fn(move |cx| {
+			// We need one polling for the message to be processed.
+			assert_eq!(Stream::poll_next(Pin::new(&mut peerset), cx), Poll::Pending);
+
+			// Check that an incoming connection from that node gets refused.
+			// This is already tested in other tests, but it is done again here because it doesn't
+			// hurt.
+			peerset.incoming(SetId::from(0), peer_id.clone(), IncomingIndex(1));
+			if let Poll::Ready(msg) = Stream::poll_next(Pin::new(&mut peerset), cx) {
+				assert_eq!(msg.unwrap(), Message::Reject(IncomingIndex(1)));
+			} else {
+				panic!()
+			}
+
+			// Wait for the peerset to change its mind and actually connect to it.
+			while let Poll::Ready(msg) = Stream::poll_next(Pin::new(&mut peerset), cx) {
+				assert_eq!(msg.unwrap(), Message::Connect { set_id: SetId::from(0), peer_id });
+			}
+
+			Poll::Ready(())
+		});
+
+		futures::executor::block_on(fut);
+	}
 }