University of Edinburgh invests further £1 million through Social and Sustainable Capital to enable UK charities and social enterprises to provide homes for service users
The University of Edinburgh has announced further investment of £1 million in a social housing fund. Managed by Social and Sustainable Capital, the SASH II fund loans charities and social enterprises the finance to purchase residential properties, which are then leased to people at risk of homelessness.
The University hopes to build on the success of its previous £1 million investment in the first Social and Sustainable Housing Fund (SASH I), which raised £64.5 million and supported 20 social impact organisations across the UK.
SASH II aims to continue the success of the first fund, helping more organisations to provide decent homes for vulnerable people.
Over £35 million has been committed to date, with The Scottish National Investment Bank investing £15 million for allocation to Scottish organisations.
Life-changing impact across Scotland
The Scottish organisations supported by the SASH I portfolio were Simon Community Scotland, the Positive Steps Partnership and the social enterprise Homes for Good Glasgow.
Using a £5 million loan from SASH I, Simon Community Scotland purchased 15 properties across Edinburgh, providing affordable accommodation for up to 30 vulnerable adults at risk of homelessness.
This has been life-changing for Greig, a tenant of the Simon Community Scotland Homes scheme in Edinburgh. He said, “Having a new home has changed my life in so much of a great way. I’ve got so much freedom to go out walking, to do my artwork – and I feel it’s helping with my mental health as well.
Dundee’s Positive Steps Partnership, is a charity helping ex-offenders and adults suffering drug addiction to transition from prison release to independent living. The £1.8 million investment from SASH I enables the Positive Steps Partnership to purchase 30 properties across Dundee for its service users.
Homes for Good Glasgow is an award-winning social enterprise, using the £3.5 million loan from SASH I to purchase 47 properties in Glasgow and Ayrshire, providing quality rented accommodation for people living with mental health issues, family breakdown and recovery from drug dependency.
Investing for social good
Announced in 2019, the University’s Social Investment Fund has invested £8 million in funds that deliver a social benefit alongside a traditional financial return.
Dave Gorman, Director of Social Responsibility and Sustainability at the University of Edinburgh said, “As values-driven institutions with commitments to social and civic responsibility, universities can use their finances to address social issues, whilst generating a return on investment.
“That has been the mission of our Social Investment Fund. We are delighted to support SASH II, having seen the positive impact that affordable housing can bring to vulnerable people here in our city and across Scotland.“
Mark Bickford, CEO of Social and Sustainable Capital said, “We are looking forward to building on the success of SASH I with fantastic, people-first organisations – all delivering significant social impact.
“We’re pleased to receive further investment from the University of Edinburgh, which demonstrates the potential of universities as social impact investors.
Alongside the University and the Scottish National Investment Bank, investors in SASH II include Better Society Capital, Greater Manchester Combined Authority, the Church of England’s Social Impact Investment Programme, Ceniarth, and Ogelsby Charitable Trust.
A NEW free eye care clinic for people experiencing homelessness opened this week at Crisis Skylight Centre in Edinburgh, the first such clinic outside of England.
The clinic, run by eye health charity Vision Care for Homeless People (VCHP), will operate from the new Wellness Floor at the Skylight in Canongate. The Wellness Floor has been funded by Specsavers and, alongside the bespoke eye clinic, includes additional rooms, which will enable Crisis to broaden the health services it provides to members.
A special event to mark the occasion was attended by more than 60 attendees from Crisis, VCHP and Specsavers, as well as third sector professionals, with all guests receiving a tour of the new facilities whilst being able to speak to experts on the invaluable support being offered at the Centre.
The Edinburgh Crisis Skylight opened its doors last year but was unable to fund these additional facilities until Specsavers stepped in to finance the new health and wellness suites.
Specsavers Scottish Divisional Chair, Jenny Stephenson, says: ‘We are delighted to help VCHP open its very first clinic in Scotland. Our founding purpose is to improve eye care for all, but for those experiencing homelessness it can sometimes be difficult to get access to the eye health care they need.
“The opening of the Wellness Floor celebrates an impactful collaboration with Crisis and VCHP with the ultimate ambition of making care equitable and accessible for all, regardless of their circumstances.’
VCHP Founder and Chair of Trustees Elaine Styles, spoke on behalf of her team when she said how thrilled they were with the new clinical rooms, which includes a separate dispense area: ‘This new clinic will be our tenth in total and all are staffed and run by volunteers, who provide professional ophthalmic services to people experiencing homelessness.
“It’s a true testament to what our long-term partnership with Crisis and Specsavers is achieving.’
Mark Kennedy, Director of the Crisis Skylight in Edinburgh, says: ‘’Crisis has been running frontline services for people experiencing homelessness in Scotland for more than a decade but this new clinic will allow us to do even more for the people we work with.
’We’re incredibly grateful to Specsavers and VCHP for their support. Having the clinic available for our members is invaluable in helping people to improve their eye health and, ultimately, to help them on their journey out of homelessness.’
VCHP, Crisis and Specsavers are working with wider optical industry stakeholders and charities to call for changes in government policies that will enable people experiencing homelessness to access the eye care they need.
Charity dedicated to preventing homelessness highlights true value to taxpayers during national housing crisis
A groundbreaking study into the impact of Scottish charity Right There has revealed it generates over £300m of savings every year for the public purse, through its unique approach to preventing and tackling homelessness.
As Scotland’s national housing crisis deepens, the report, entitled “The difference Right There makes” takes a social return on investment approach to impact evaluation, and sets out how much Right There’s work saves the taxpayer through the likes of long-term health and social care, unemployment benefits, emergency accommodation and by helping to stop people’s problems from worsening.
It has been carried out in the context of the current landscape of economic, political, social, and environmental factors that have and are continuing to shape the third and public sectors, to show the social benefit to society achieved through the charity’s work.
Right There, formerly Ypeople, part of the YMCA movement, has provided practical assistance, advocacy, and empowerment for 200 years, assisting individuals facing tough times.
The charity is built on the principle of meeting people where they are without judgement and walking alongside them, tailoring support to their ever-changing needs from providing safe homes to emotional wellbeing and family support as well as community outreach.
In addition to implementing programmes or interventions, Right There stands by individuals, offering unwavering life-improving support and a helping hand when they need it most. That includes accessing medical help, guiding them toward employment opportunities and, ultimately, a secure long-term home.
Through creating five archetypes, based on a series of ‘typical’ storylines about the lives of people that Right There helps, the study has mapped out the journey that supported individuals take, selecting relevant and realistic metrics to measure the impact of the charity as a financial cost to the public purse, had those individuals not been supported by Right There.
Savings that have been measured in the report include the cost of NHS treatment for issues such as substance use and poor mental health; the avoidance of future interactions with the criminal justice system; the benefits of individuals moving into longer term, more sustainable accommodation and savings to the Scottish economy in supporting individuals towards employment.
Janet Haugh, CEO of Right Theresaid: “As a charity we are driven by the desire to help individuals, one person at a time. Our support is tailored to each person, and we pledge to be right there for as long as it takes. To see the impact of our support defined in such large financial terms is quite overwhelming.
“Right There is saving taxpayers in excess of £300m annually through relieving pressure on NHS and social care costs, unemployment benefits and emergency accommodation.
“At a time when Scotland’s housing crisis is intensifying, budget cuts are increasing and the prediction that homelessness will increase by a third by 2026, compound just how critical our work is and the social benefits it delivers for society as a whole.”
Efforts to boost affordable housing supply by acquiring properties to bring into use for affordable housing and help reduce homelessness will be given an £80 million uplift over the next two years.
The funding, announced by First Minister Humza Yousaf on a visit to Hillcrest Housing Association’s Derby Street development in Dundee, will increase the Affordable Housing Supply Programme budget to nearly £600 million in 2024-2025.
Investment will help reduce the time spent in temporary accommodation, including by children, and will also accelerate discussions with COSLA in relation to the number of local authority void properties.
The First Minister, who faces a vote of confidence at Holyrood next week, said: “Housing is essential in our efforts to tackle child poverty and reduce inequality across Scotland, and it supports jobs and growth in the economy. Providing good quality, affordable housing is at the very core of what my Government is doing to make Scotland a better place.
“While there is a single person homeless in our country, it is simply not acceptable to have houses sitting empty – so I am determined that we remove the barriers, and provide the money that will enable councils to buy properties so they can become affordable homes again.
“This £80 million will build on the success of our National Acquisition Programme which I announced last year, which spent more than £60 million and delivered more than 1,000 affordable homes. This is one of a number of actions we are prioritising to help to reduce the number of households in temporary accommodation.
“We will also accelerate discussion with COSLA in relation to the number of empty council homes.”
Matthew Algie donates 1,000 coffees to Pay It Forward scheme supporting people experiencing homelessness
Charity support worker explains how coffee can kick start conversations that ‘save lives’
Warning that housing emergencies are having impact on more people across Scotland and UK
Coffee roaster Matthew Algie hopes donation will inspire others to support Social Bite Pay It Forward scheme
People experiencing homelessness can use food and drink service in Edinburgh, Glasgow, and Aberdeen
A SUPPORT worker at one of Scotland’s most prominent homelessness charities has highlighted the ‘life-saving’ potential of conversation for some of the nation’s most vulnerable people ahead of this year’s Pay It Forward Day.
Euan Brock, a support and development worker at Social Bite, was speaking as leading Scottish coffee roaster Matthew Algie donated more than 1,000 coffees to the charity’s Pay It Forward scheme, which provides food and hot drinks to people experiencing homelessness, to mark the global event (Sunday, April 28).
The coffees will be provided through the Pay It Forward scheme across Social Bite’s three Scottish locations in Glasgow, Edinburgh, and Aberdeen.
Brock has been with Social Bite, the high-profile charity that provides homes, jobs, food, and support to people experiencing homelessness, for three years.
He explained how the number of people the organisation supports is rising, with more Scots facing challenging situations – from rough sleeping and living in temporary/emergency accommodation to facing the imminent threat of becoming homeless – as the impact of food poverty, housing emergencies in Scotland’s major cities, the cost-of-living crisis, and rising energy prices are felt.
Social Bite’s Pay It Forward scheme provides hot food and drinks to thousands of people in need, which Brock says can prove crucial in developing trust and providing a sense of inclusion for people who may have experienced traumatic events.
He said: “The biggest challenge I see at the moment is a shortage of adequate housing across the whole of the UK. Toward the end of 2023 Edinburgh and Glasgow declared a housing emergency with more councils following this year.
“This means more people are finding themselves homeless and declaring it with councils, but there is a lack of permanent and temporary homes, as well as hotels/B&B and emergency accommodation leaving people with no option but to sleep rough or sofa surf with friends or family if they are able to.
“The Pay it Forward scheme can support someone by providing food and drinks, but it also allows us to build a trusting relationship with people accessing the service and then can go on to support them going forward.
“Conversation and inclusion is hugely important in society and a major part of Social Bite. Isolation and loneliness are silent killers and research suggests it can be as damaging to someone’s health as smoking 15 cigarettes a day.
“Through Social Bite and Pay it Forward we can welcome people with a smile, a hot meal, and a simple ‘How are you today?’ – it can make someone’s day that hasn’t spoken to anyone and been ignored on the street.
“A simple ‘How are you?’ can save lives.”
The Pay It Forward Scheme has proved a gateway to thousands of people accessing support with housing applications, benefits applications, and other support services they are entitled to, as well as referrals into Social Bite’s Jobs First programme. Others have entered volunteering programmes.
Mel Swan, Social Bite’s Commercial and Operations Director, said: “Pay It Forward is part of the fabric of Social Bite. Food and drink helps people at their most vulnerable and leads to other support towards a more stable position in life. It all starts by talking.
“Matthew Algie’s donation of 1,000 cups of coffee will help hundreds of people across Scotland in the coming weeks. Each one offers the possibility of connection and building a relationship that can help someone experiencing homelessness get the support they need.
“Paying it forward is a small act that can mean a lot and brighten someone’s day. It also plays a big part in our ultimate goal of ending homelessness.”
Paul Chadderton, Managing Director at Matthew Algie, said: “Social Bite tirelessly works to address one of Scotland’s most pressing issues, homelessness, and is one of our most important partners.
“This donation will help kick off conversations that can make a difference, as well as providing a moment of enjoyment at a difficult time for those the charity supports.
“More importantly, we want to highlight the importance of Paying It Forward to people across Scotland. A small gesture can make a huge difference to those who need it most.”
Established 160 years ago this year, Glasgow based coffee roaster Matthew Algie supplies high-quality coffee to partners across Scotland, the UK, and Ireland.
The Bill contains six main parts, addressing areas such as rent control, eviction procedures, tenant rights, and homelessness prevention.
It seeks to introduce measures to enhance tenant protections, prevent homelessness, and promote sustainable housing solutions.
Before the Bill was introduced to Parliament, the Local Government, Housing and Planning Committee established a Tenants Panel and a Landlords Panel, representing renters and landlords from across Scotland, to advise the Committee on the key issues within Scotland’s private rented sector.
These panels will now provide feedback on the Bill alongside the responses to the joint public consultation to inform both Committees’ scrutiny of the proposals.
Commenting on the launch of the Committee consultation, Local Government, Housing and Planning Committee Convener Ariane Burgess MSP said:“The new Housing Bill offers an opportunity to enact meaningful reforms that will positively impact the lives of tenants, homeowners, and communities across Scotland.
“Even before the Bill was published, we had already been gathering views from our Tenant and Landlord Panels to learn about what both need from new legislation.
“Now we want to hear from other stakeholders with an interest in Scotland’s housing policies, to ensure that the Bill is responsive to and reflective of the significant challenges facing the sector.”
Collette Stevenson MSP, Convener of the Social Justice and Social Security Committee, which holds the remit on scrutiny of the homelessness and domestic violence aspects of the Bill said:
“Everyone should have a warm and safe place to live and tackling rising levels of homelessness across Scotland should be a priority for us all.
“The proposals in this Bill seek to shift the focus away from crisis intervention and towards homelessness prevention.
“It’s important that we hear from a wide range of stakeholders, including tenants, landlords, advocacy groups, local authorities, and members of the public, to understand if the proposals go far enough to prevent so many people reaching crisis point.”
The Committees want to hear your views on the Housing (Scotland) Bill. The Key areas for feedback include:
Rent control mechanisms and affordability measures.
Tenant rights to pet ownership and property modifications.
Proactive homelessness prevention strategies by local authorities.
Enhancements to eviction procedures and tenant protections.
To participate in the consultation and contribute to shaping Scotland’s housing future, individuals and organisations are invited to submit their views through the official Scottish Parliament consultation portal.
Preventing homelessness and strengthening tenants’ rights
New legislation which aims to keep people in their homes and help prevent homelessness has been published.
The Housing (Scotland) Bill will introduce an ‘ask and act’ duty on social landlords and bodies, such as health boards and the police, to ask about a person’s housing situation and act to avoid them becoming homeless wherever possible.
It also reforms provision for people threatened with homelessness up to six months ahead and includes provisions for tenants experiencing domestic abuse.
The Bill will outline proposals for a New Deal for Tenants, a key part of the Bute House Agreement between the Scottish Government and the Scottish Green Party.
Proposals include long term rent controls for private tenancies, new rights to keep pets, decorate rented homes and stronger protection against eviction.
Housing Minister Paul McLennan and Tenants’ Rights Minister Patrick Harvie will lead the Bill’s passage through Parliament.
Mr McLennan said: “Scotland already has the strongest rights in the UK for people who become homeless – but nobody should have to experience the trauma and disruption of losing their home.
“Early action, through the kinds of measures included in the Housing Bill, results in fewer people reaching the point of housing crisis. It also means people facing homelessness have more choice and control over where they live, helping them to maintain relationships in their community and stay in work.”
https://twitter.com/i/status/1772914704547033115
Mr Harvie said: “A fairer, well-regulated rented sector is good for both tenants and landlords. Tenants benefit from improved conditions and security, while good responsible landlords will thrive when their good practice is recognised by regulation.
“Scotland has led the way across the UK in improving the experience of people who rent their homes and this reform has been at the same time as significant growth in the size of the private rented sector. So progressive reform can lead to better conditions and a healthy rented sector overall.
“I want to keep working with both tenants and landlords to achieve that goal.”
THE housing bill published today by the Scottish Government fails to address the systemic issues driving the housing emergency, Shelter Scotland has said.
The charity warned that there was no realistic prospect of councils being able to fulfil new statutory obligations given that local authorities are regularly failing to meet their existing legal duties.
The bill’s publication comes in the wake of figures which show a significant decline in the delivery of social homes, which Shelter Scotland says is essential in tackling the systemic issues driving the housing emergency.
Shelter Scotland Director, Alison Watson, said:“There is a growing consensus that Scotland is in the grip of a Housing Emergency. Already four local authorities have declared housing emergencies, with more expected to follow in the coming weeks.
“Today’s housing bill was an opportunity to address the causes of that emergency and end the scandal of 10,000 children trapped in temporary accommodation.
“What we need is urgent action to drive up the supply of social homes, invest in local services and stop to councils breaking existing homelessness laws.
“Instead, we have a Housing Bill that does none of that and risks diverting frontline staff from the task in hand. By proposing new additional duties on councils already failing to deliver existing laws, we run the risk of making the situation worse.
“It is time for Scottish Ministers to listen to what our communities are telling them – declare a housing emergency and bring forward a new plan to deliver the social homes we need.”
Responding to the Housing (Scotland) Act being published, Citizens Advice Scotland Housing spokesperson Aoife Deery said: “The pandemic and cost of living crisis underlined the need for better protections for tenants and more affordable housing. In many ways the market is simply broken and urgently needs repaired.
“The CAB network in Scotland gives out hundreds of thousands of pieces of advice a year on housing, and it was one of the top areas of crossover advice – where people seeking help with housing also needed help with something else, often social security, debt or energy bills. In fact a third of all single working age households contacting CABs do so for advice on housing.
“We welcome this once in a generation opportunity to improve the rented sector and shape a fairer system. We look forward to getting into the detail of the Bill, change needs to happen with both landlords and tenants involved, we will be contributing our evidence as this work moves forward”
Cyrenians welcomes the introduction of the Housing (Scotland) Bill to the Scottish Parliament today. Long awaited, the new prevention or ‘Ask and Act’ duties included within it have the power to reach people before they become homeless and get them the right help, much faster.
‘Ask and act’ forms the cornerstone of a wider set of reforms to homelessness legislation. If passed, the Bill will require public bodies – including healthcare and justice agencies to implement systems whereby people at risk of homelessness are easily identified and directed to the appropriate services before they reach crisis point.
These duties will implement recommendations from the Homelessness Prevention Task and Finish Group (co-chaired by Crisis and Cyrenians), published in August 2023 [click here to read the Group’s report].
The group drew on its collective knowledge of the housing sector, as well as the lived experience of people who were homeless, through the All in for Change programme.
Throughout the process, building up to the publication of the Housing Bill, Cyrenians has consistently argued for increased funding to resource new prevention duties. We will continue to advocate for the necessary resource that our public bodies and local authorities will need to make the promise of the Housing Bill possible.
Ewan Aitken, Chief Executive of Cyrenians, said: ““Scotland is in the grip of a housing crisis. Several local authorities have now formally declared a housing emergency as the numbers of people facing homelessness is reaching record levels.
“But we know from our work across 60 services in Edinburgh, the Borders, Falkirk and the Lothians, that in many cases homelessness can be stopped long before people reach crisis point.
“To do that we need to widen the scope of responsibility, giving people within public bodies the right training and resource to be able fulfil this role. We believe that this, a public health approach to homelessness, is key to tackling the housing crisis.
‘We are very pleased to see the plans for prevention duties within the Housing Bill, published today. This legislation has the potential to prevent homelessness in Scotland. However, to do that, it needs to be properly resourced.
“As a charity which tackles the causes and consequences of homelessness, we regularly work with people whose situation could have been prevented, if they had received help earlier. We urge the Scottish Government to ensure that these duties are properly funded so that the bill can live up to its potential.”
Cats Protection has welcomed the new Housing (Scotland) Bill, which will for the first time give renters the right to own a pet.
The charity’s Advocacy & Government Relations Officer for Scotland, Alice Palombo, said: “This is a landmark day for renters in Scotland, who will finally be given the right to own a pet with an end to blanket ‘no-pet’ policies.
“We hope this new law will stop the misery faced by animal lovers who have been denied the chance to ever own a pet cat, simply because they rent rather than own their own home.
“People in rented housing pay significant amounts of their income every year on fees and rent, and it is only right they should be able to feel at home in that property. Pet ownership – whether it’s a cat or another companion animal – provides companionship to all sorts of people. Whether it’s older people at risk of loneliness or young families with children learning how to care for others, pets play a vital role in our lives.
“We’re particularly pleased to see the Bill introduces an obligation for local authority and social landlords to publish a policy relating to domestic abuse. Cats Protection operates a free fostering service for cat owners fleeing domestic abuse, but many victim-survivors can struggle to find cat-friendly housing. We hope that domestic abuse policies will include a commitment to ensuring victim-survivors can keep their pets when they settle into new housing.
“A survey by Cats Protection and Dogs Trust found a lack of sufficient pet-friendly rented housing in Scotland, with only 22% of Scottish landlords allowing pets. This puts a strain on rehoming charities, and landlord-related issues is one of the top reasons for cats coming into our care.”
The Housing (Scotland) Bill was informed by three public consultations and will now by scrutinised by the Scottish Parliament.
THE lack of a strategic, evidence based approach to the private rented sector (PRS) by the Scottish Government is impacting the effectiveness of the sector to assist with Scotland’s housing crisis. This is one of the key findings in the latest Rapid Rehousing Transition Plan (RRTP) report by the Chartered Institute of Housing Scotland (CIH Scotland) and Fife Council.
The sector report urges the Scottish Government to show leadership in ensuring all elements of Scotland’s housing market work together, effectively, to tackle the housing crisis. It calls on government to set a clear evidence based vision for the PRS, highlighting the vital role the PRS plays in addressing Scotland’s housing needs.
The Scottish Government’s latest homelessness statistics covering the period April to September 2023 show a continuing increase in homelessness levels with a 10 per cent increase in the number of open cases and an eight per cent increase in the number of households in temporary accommodation compared to the same period in the previous year.
Underlining the findings of the report Gavin Smith, chair of CIH Scotland said: “The private rented sector is a vital part of our housing infrastructure and has the potential to alleviate homelessness in Scotland.
“However, we’re currently seeing Scotland’s PRS contract, with 68 per cent of local authorities who took part in this research reporting an increase of private landlords leaving the market in their area and 47 per cent concerned about increasing levels of homelessness from the PRS.
“The reduction in supply, further amplifies the issue of demand with record levels of people living in temporary accommodation and building figures dropping. This report calls on the Scottish Government to acknowledge the PRS as a systemic part of Scotland’s housing infrastructure and implement an evidence and strategic based approach to its legislation and policy making in this area.”
The report highlights that the percentage of homeless households being housed in a private rented tenancy has steadily decreased each year since 2021.
Homes for Good – Scotland’s first social enterprise letting agency – are committed to creating secure quality homes for tenants and enabling landlords to successfully manage their investments.
Joey Lawrie, head of lettings and tenancy support at Homes for Good sets out why it is so important not just to provide a tenancy but to create beautiful spaces where tenants can feel at home.
“We deal with all types of people at Homes for Good, with the aim of providing safe, secure homes. In a recent survey, all the tenants we spoke with expressed that they felt safe and secure in their tenancy.
“This is mainly because we provide a supportive, open service working with tenants to resolve any issues that arise. We know from speaking with tenants that many people’s experience of the PRS is one of uncertainty.
“At Homes for Good, we know that doesn’t have to be the case and support the findings of the report, advocating for a plan to enable all of the private rented sector to be an effective part of Scotland’s housing solution.”
The report is the fourth and final in a series examining local authority approaches to tackling homelessness through Rapid Rehousing Transition Plans (RRTPs) first introduced at the end of 2018.
It follows the publication at the end of 2023 of the third report, which analysed the affordability of the PRS for local housing allowance recipients in Scotland and found 92 per cent of private rent was not affordable.
Additional reports in the series made the case for continuing to provide dedicated funding to tackle homelessness through RRTPs for the next five years and provided a monitoring framework for local authorities.
Phil Rosenthal from hit Netflix show, Somebody Feed Phil, can be seen stopping by Social Bite’s Edinburgh coffee shop on Rose Street in the latest series which launched last night.
The coffee shop, which offers customers the chance to ‘pay it forward’ to help support people who are homeless or vulnerable, features on the show.
Members of the Social Bite team and Phil discuss the charity’s mission to help end homelessness as they enjoy some great coffee and baked goods available from the shop.
Mel Swan, Commercial and Operations Director of Social Bite, said: “Having a big star and foodie icon visit our Edinburgh coffee shop really helps share our mission with the world. We want to bring people together to end homelessness, and that can start with good food and a conversation.
“Phil really enjoyed our cakes and cookies, and hearing about what we do. We can also claim to have given him his first taste of our national drink, Irn-Bru – that’s one for the books!”
Image: (Back row from left to right) Aimee Latham, Louise Hutson, Babs Haig, Amanda Traill. (Front row from left to right) Colin Childs, Monica, Phil Rosenthal, Mel Swan
Just before Scottish Ministers slashed Scotland’s affordable homes budget by 26 per cent, Glasgow last month (November 30) became the latest major local authority in Scotland to declare a “housing emergency”, following the lead of Edinburgh and citing “unprecedented pressures” facing the council’s services (writes RICCARDO GIOVANACCI).
While of course there is a political element to these dramatic gestures – Labour-led Edinburgh is blaming Holyrood and SNP-led Glasgow is pointing the finger at Westminster – the declarations are a sure sign that the housing market isn’t working and that something needs to be done.
New statistics just released (December 13) show that the country’s housing crisis is intensifying, with plummeting numbers of both new starts and completions. Starts were down 24%, meaning that the crisis will only become more acute in years to come.
In more pragmatic times, before the private rental sector became public enemy No 1 in the eyes of some of the country’s more radical politicians, private landlords would have stepped into this breach and filled the gap between supply and demand.
They would have done this by bringing properties to market which would have accommodated a fluid and flexible population of tenants at rents they could afford until they found homes of their own or longer-term social rentals which suited their needs.
Now, however, many of the landlords who might previously have provided this service are abandoning the market, driven out by increasingly punitive legislation, fewer tax breaks, rent controls and the mora attractive market of holiday let sites such as Airbnb.
Is this sea change factored in to the concept of a housing emergency in the City Chambers of our great cities? There is little evidence to suggest that it is. Instead, councillors, single-issue charities and NGOs focus exclusively on the perceived plight of tenants. There is a marked lack of balance in current political thinking.
There does not appear to be much in the way of appreciation that elements such as the cost of living, rents, running costs, disposable income and inflation impact on landlords as well as the people for whom they are providing a roof over their heads.
Tenants’ Rights Minister Patrick Harvie was told in April this year by delegates at the Scottish Property Federation that rent control legislation he introduced the previous year had led to investors pulling millions of pounds out of Scotland.
Despite such warnings, the word on the street is that the Scottish Government is considering making the temporary restriction imposed on rent increases to help with the cost of living into a permanent rent control.
It is all very well to criticise others for inaction or for incomprehension of the seriousness of the situation, but what can realistically be done to help alleviate this escalating crisis?
Here are five suggestions which might go some way to help:
The overall tax burden on landlords needs addressed. They are currently taxed full amount and there needs to be a reward to encourage further investment, since the activity is by no means risk-free. There is nothing at the moment withing the tax regime to encourage participants into the sector.
Landlords should be treated with respect, rather than the current disdain. They are responsible grown-ups who want happy tenants. Longer-term lets are in everybody’s interest.
There is no reason not to keep regulation as it is. Landlords have factored the current regime in. But upcoming legislation needs more balance, as it is too heavily weighted in favour of tenants at the moment.
Rent caps are not working and experts said they wouldn’t work. The Government and other interested parties should listen to advice from professionals when it is asked for.
Career advice for young people to consider the trades as a career to improve housing stock in long term.
These are simply suggestions, but the more the parties involved in Scotland’s housing market can work together, rather than against each other, the more likely it is that the current and future crises will ease.
Riccardo Giovanacci is Managing Director at Glasgow-based Rosevale Letting.
