housing crisis – The NEN – North Edinburgh News

Further reductions in short-term lets ‘could cost Edinburgh economy £57m’

Warning from the self-catering sector that a punishing regulatory framework will simply cost jobs and do nothing to resolve Edinburgh’s housing crisis

A new independent analysis shows short-term lets make a substantial economic impact in Edinburgh while only making up a tiny percentage of the total number of properties in the city.

BiGGAR Economics, a respected Edinburgh-based consultancy, calculated that the city’s short-term let sector generated £154m in GVA and supported 5,580 jobs in 2023, with guests spending more on local goods and services than the average visitor, particularly in hospitality, tourism and retail sectors.

Jointly commissioned by Justice for Scotland’s Self-Catering and STL Solutions, BiGGAR’s report lays out the economic and fiscal impacts of STLs in Edinburgh, its wider sectoral impact supporting business and tourism activity, and also assesses its effect on housing supply.

The report concludes that the share of secondary lets – properties entirety rented out entirely to guests rather than owner occupied – account for just 0.8% of dwellings in Edinburgh. Moreover, the number of long-term empty properties continues to rise, including in the period after licencing was introduced, with the city remaining a hotspot for empty housing.

The study comes as Edinburgh Council consult on their licensing scheme and the Scottish Parliament’s Local Government, Housing and Planning Committee will shortly take oral evidence from stakeholders on the Scottish Government’s STL implementation update report.

The key headlines include:

The self-catering sector is estimated to generate £154m GVA and supports 5,580 jobs.
A decrease in just 0.5% in the number of secondary let properties would have massive ramifications for the local economy, losing £57m in economic activity.
Empty properties far exceed the number of short-term lets in the city, with secondary lets making up just 0.8% of dwellings in Edinburgh compared to 4% for empty homes.

While it focuses on Edinburgh, the report will undoubtedly be of interest to other local authorities monitoring the impact of their short-term let regulations.

The findings have been shared with Edinburgh Council and the Scottish Government. The self-catering industry is committed to evidence-based policymaking, ensuring that robust and reliable data underpins public policy affecting the self-catering industry and wider tourism sector.

The industry continues to argue that the Scottish Government’s short-term let regulations have produced unintended consequences for the sector while failing to meet its underlying policy objectives, and Edinburgh’s approach in particular has been beset by three legal setbacks, most recently with the Council’s u-turn on issuing three-month suspensions on licensing applications.

Graeme Blackett, Director of BiGGAR Economics, said: “This independent research has found that the economic impacts of short-term lets will tend to be greater than residential use.

“This is a result of guest spending in the local economy, for example in the hospitality sector. The guest spending supports jobs in the Edinburgh economy, as well as sustaining a greater range of hospitality and other local businesses than would otherwise be the case, contributing to the quality of life for residents.

“The short-term lets sector is contributing at least £154 million to the Edinburgh economy each year. Our research also found that short-term let properties account for only 1.5% of Edinburgh’s housing stock, with secondary lets at only 0.8%, too low a proportion to have a meaningful impact on the local housing market.”

Fiona Campbell, CEO of the ASSC, said: “This major research study verifies that secondary lets are a huge economic driver for the capital, supporting over 5,500 jobs, and providing a much-needed boost to other local tourism and hospitality businesses.

“It outlines a proper holistic assessment of Edinburgh’s unique housing market, showing that secondary lets only account for 0.8% of housing stock. For us, the message is clear: you can’t solve a housing crisis by producing a crisis in Scottish tourism by decimating local businesses.

“Instead, we’ve got to build our way out and tackle the increasing problem of empty homes. We sincerely hope that this independent study can help refocus the policy agenda and inform the ongoing regulatory discussions.”

Iain Muirhead, Co-Founder of STL Solutions, said: “Short-term lets play a crucial role not only in supporting Edinburgh’s thriving tourism industry, which benefits all residents, but also in accommodating hundreds of visitors each year who come for economically important purposes such as work, festivals, and the education sector.

“We hope that local councillors will take this report into consideration when shaping local policies, especially planning regulations, to ensure a balanced approach is achieved. As the report indicates, overly restrictive measures could lead to the emergence of a black market, undermining the objectives of a well-regulated licensing scheme.”

Ralph Averbuch, Spokesman for JfSCC, said: “This report clearly demonstrates that full time Scottish Self-Catering operators have never been the issue. Yet we have been hounded as if killing off this vital part of Scotland’s tourism offering would be a magic cure for decades of government missteps.

“Politicians of all colours felt we were useful scapegoats but this economic analysis pinpoints that the problem is population growth and insufficient affordable house building. This problem will never be resolved by attacking a group which makes up less than 1% of Edinburgh housing.

“What’s needed is bold government action on housebuilding. Politicians have pretended that a crackdown on Scotland’s self-caterers is bold. It’s not. It’s been a master class in misdirection.”

Economic Impacts of Short-term Lets in Edinburgh 18Oct24 Download

Right There charity to pull out of Edinburgh housing programme

Council refuses to pass on uplift in Housing Benefit to charity housing provider as Scottish Government declares a housing emergency

Right There, a charity which helps prevent homelessness, has been forced to end its contract with City of Edinburgh Council, to provide critical housing in three locations for some of the city’s most vulnerable residents.

The charity, which was formerly called Ypeople, says this is its ‘absolute worst case scenario’, and ‘a last resort’ but after months of trying to negotiate with the Council, housing bosses are refusing to pass on its uplift in housing benefit to increase the Housing Management Payment.

The Housing Management Payment has remained unchanged since 2019 despite the cost of living skyrocketing in that time. Over the last five years, the local authority has received increased housing benefit which it refuses to pass on to providers to help deal with increased costs of running an assisted housing programme.

The housing facilities facing closure are one in Broomhouse and two residential units in Pilton. Their closure comes after the local authority failed to engage with the charity on contractual terms over recent weeks.

It will build pressure on the Council’s administration after a housing emergency was declared in the capital in November of last year, now even more so with the Scottish Government expected to announce a national housing emergency later today.

Janet Haugh, CEO of Right There said: “We are devastated that we are having to pull the plug on this service, this is our absolute worst case scenario, especially when Scotland is at the brink of a national housing crisis.

“We have done everything in our power to resolve this with the Council but sadly as a charity we simply cannot absorb a projected £2.5 million deficit over the next five years and continue running this service.”

Housing Benefit levels have increased across Scotland to reflect the increased cost of living, utilities and general inflationary increases. Despite that, the Council expects Right There to subsidise the cost of an essential service despite being in receipt of additional payments to which the residents are entitled.

The project run by Right There provides accommodation support for 44 of Edinburgh’s most vulnerable people, who live with the consequences of family breakdowns, homelessness, poverty, addiction, and many other challenges. In addition, the jobs of 19 support workers are now at risk.

Janet Haugh added: “We have exhausted all avenues with the Council and bringing the contract to a conclusion by triggering the three months’ notice period is our last resort.

“Our priority now is to work with the Council to hand over the running of the programme to either the local authority or another provider to ensure as much continuity and as little distress as possible for the 44 residents affected, and the support workers whose jobs are at risk.”

Report shows lack of strategic direction in the private rented sector is fuelling Scotland’s housing crisis

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.

The report can be viewed in full: Rapid Rehousing Transition Plans: Improving access to the private rented sector

Social homes vital for Edinburgh’s future Shelter Scotland tells summit

Delivering more social homes is the only way to end Edinburgh’s housing emergency according to a leading housing charity.

Speaking at a housing summit hosted by the Edinburgh Futures Institute, Shelter Scotland Director Alison Watson said investing in social homes would be vital in fixing the city’s broken housing system.

The summit comes just a day after new figures revealed that 1,525 children in Edinburgh are living in temporary accommodation, the highest number on record and more than any other local authority in Scotland.

The same figures also showed an increase in the number of households in temporary accommodation, the number of open homeless applications, and the number of breaches of the unsuitable accommodation order in Edinburgh.

Shelter Scotland Director, Alison Watson, said: “Record numbers of children in Edinburgh have nowhere to call home, rents are out of control, resource starved local services can’t cope and so people’s housing rights are being breached, the law is being broken, with alarming regularity.

“Undoubtedly the root cause of Edinburgh’s housing emergency is a chronic shortage of social housing. Addressing that shortfall is the only way to fix the capital’s utterly broken housing system.

“Only yesterday the Scottish Government has pressed ahead with brutal cuts to the housing budget – a choice which is set to make the situation much worse.

“Our politicians need to understand that you can’t slash funding for social housing then expect those who live in the capital to take you seriously when you say you’re committed to tackling Edinburgh’s housing emergency.”

Ways to work together to ease Scotland’s ongoing housing crisis

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.

EDINBURGH DECLARES HOUSING EMERGENCY

Shelter Scotland welcomes Edinburgh’s housing emergency declaration

https://twitter.com/i/status/1720109347743666177

Councillors in Edinburgh have overwhelmingly voted to recognise and seek to address the scale of Edinburgh’s housing crisis.

In a first for the city, members agreed to officially declare an emergency today (Thursday 2 November) during a Full Council meeting.

It comes as Shelter calls on local authorities to take concerted action across the country, and as homelessness reaches close to 5,000 households a night in the Capital despite a huge amount of preventative work by the third sector, Council and partners.

Councillor Jane Meagher, Housing, Homelessness and Fair Work Convener, said: Edinburgh is a caring, welcoming city and our council officers, charities and partners do an incredible job supporting our most vulnerable residents. Sadly, however, despite us doubling the Council’s homelessness budget over the last three years, we are now at risk of failing households who need our help most.

“Edinburgh may be a wealthy city on the surface, but we are seeing demand for homes far outstrip supply. Close to 5,000 households including many children will need to live in temporary accommodation this Christmas, because of this housing shortage.

“This is not a new challenge, but it is at the stage of breaking point. Rents are being driven up, the cost of living continues to put pressure on household bills and homelessness is rising. We have ambitious housebuilding plans, but we face rising construction costs as a result of inflation and difficulties securing land. This is against a backdrop of Edinburgh having the lowest proportion of homes for social rent in all of Scotland.

“By declaring a housing emergency, we hope to draw widescale attention to an issue that demands urgent and united action. Every single person deserves a warm, safe, and affordable place to call home and we can address this, if we act now.

“I’m pleased this decision received such powerful support today from Councillors and we will now work towards establishing a Housing Emergency Action Plan, while seeking the resources necessary to achieve its success.”

Shelter Scotland has welcomed the City of Edinburgh Council’s declaration of a housing emergency.

The capital becomes the first city in Scotland to declare a housing emergency, with councillors backing a motion at today’s full council meeting.

The motion also commits the council to developing a housing emergency action plan alongside key housing, social justice, and other stakeholders from across the city.

The housing and homelessness charity pointed to the chronic shortage of social housing in Edinburgh, the record numbers of children stuck in temporary accommodation in the city, and the rising average cost of private renting as evidence of a housing emergency in Edinburgh.

Shelter Scotland Director, Alison Watson, said: “Rents are out of control, record numbers of kids have nowhere to call home, more and more people are becoming homeless – Edinburgh is clearly in a housing emergency.

“The housing emergency is touching communities across Scotland, but a chronic lack of social homes, and the enormous number of properties used exclusively for short-term lets are just some of the factors which have made the situation especially acute in Edinburgh.

“By coming together to acknowledge that reality today, councillors now have licence to deliver the emergency response we need.

“Of course, there are aspects of the housing emergency that are beyond the council’s control, both the UK and Scottish governments must share responsibility, but it’s clear that a business-as-usual approach isn’t going to cut it anymore.

“People in the capital are crying out for action – every level of government has a duty to respond.

“Today’s declaration of a housing emergency is just the start of the journey; Shelter Scotland is ready to support the council as it prepares its action plan and we’ll be monitoring progress closely.”

Scottish Labour Lothians MSP Sarah Boyack has today called on the Scottish Government to provide targeted and substantial resource to fix Edinburgh’s housing Crisis.

In anticipation of the City of Edinburgh Council declaring that Edinburgh is facing a housing crisis, Sarah Boyack MSP asked the First Minister to provide the resources and funding needed to fix Edinburgh’s broken housing market.

Commenting Ms Boyack said, “Humza Yousaf’s empty words at FMQs do nothing to alleviate the concern of the 5000 families living in temporary accommodation here in Edinburgh.

“With rents skyrocketing and families being forced out of Edinburgh the SNP Government has presided over a national failure in housebuilding.

“We need more affordable and social housing in Edinburgh, and with 84% of Scotland’s population growth being concentrated in the Lothians we urgently need the funding to address Edinburgh’s housing crisis.”

Lesley Anderson, Regional Director at the Scottish Procurement Alliance – which was crucial to the delivery of 567 affordable homes last year, including 193 in Edinburgh – commented on the city’s housing emergency.

She said: “The announcement of Edinburgh’s housing crisis is no surprise and a clear wakeup call that we need immediate action to empower social landlords to get social homes back on track.

“It’s a Scotland-wide problem. By providing better funding and cutting the red tape, we can enable associations to deliver quality, community-driven social housing.

“With a raft of head winds facing the housing sector at the moment, Scotland’s Housing to 2040 vision will be a major challenge to achieve.

“Other regulations and aspirations aren’t helping the cause. With the uncertainty of the proposed Scottish Passivhaus equivalent standard from December 2024, adding to the hefty load the sector is already carrying.

“Recent rent freezes, soaring prices, inflationary pressures, skills shortages and sustainability of contractors have all played a part in the reduction of new build development and existing unoccupied social housing.

“Housing providers across Scotland need more support and guidance if they are to have any chance of meeting government-led targets and manoeuvre this crisis. “

Choudhury: Housing crisis sweeping the nation

Commenting on the housing crisis sweeping the nation, FOYSOL CHOUDHURY MSP said: “Home is supposed to be a place of safety and comfort, yet for many households across Scotland their home has become a source of discomfort and illness, overridden with damp, mould and urgent repairs.

“Many across our nation sadly don’t even have homes, stuck on seemingly endless waiting lists for both permanent and temporary accommodation.

“There is no doubt that Scotland is deep in a housing crisis and that urgent action is needed to change this sector before it’s too late.

“As of September 2022, 9, 130 children were reported to be living in temporary accommodation, which is an 100% increase from a decade ago.

“This is unacceptable, all children deserve a safe, healthy and stable home.

“Last week, during the Scottish Labour Business Debate on Housing and Homelessness Prevention, I urged the Scottish Government to act quickly and effectively to reverse the record numbers of children trapped in temporary accommodation.

“I also noted both in my speech then, and the day before during topical questions at the Scottish Parliament, that a new NUS report shows that a fifth of international students in Scotland had experienced homelessness during their studies.

“This problem was also made evident to me in a Student Housing Roundtable I hosted earlier this year, where I heard stories of racist landlords, sofa surfing and damp infested homes.

“Clearly, these are problems which are striking constituents across many sectors of society.

“This demonstrates that there is an overbearing crisis in the housing sector, with particular weaknesses of rising homelessness, striking levels of poor conditions and a worrying prominence of unscrupulous landlords.

“These three areas of great concern must be addressed urgently and I will continue to urge for solutions in these areas.

“I’ve already held my Member’s business debate on Damp Housing in Scotland and my motion for this noted my call for a whole house retrofitting programme and a grant scheme to tackle damp housing.

“I’ve also lodged a student housing motion at the Scottish Parliament, urging for legislation which would give equal rights to all tenants in terms of protections offered to them.

“Scottish Labour are also calling on the Scottish Government to deliver 38,000 social homes by 2026, and to build 25,000 all tenure new homes annually.

“We urgently need a two-pronged approach which both builds more social and affordable housing, in addition to also prioritising equal access to settled housing for all.

“Once we do this, we also need to ensure that legislation holds landlords accountable, prioritises rights for tenants and awards funding for retrofitting and damp management to combat the problems with much existing housing stock in order to generate safer, liveable conditions.

“Recently, we’ve had weeks of talking on all aspects of Scotland’s housing crisis.

“That’s fantastic.

“But, now it’s time to show the value of our words and start the action.”

Solving the housing crisis: council looks to private sector for ideas

The City of Edinburgh Council has this month invited the private sector to bring forward proposals to deliver affordable housing on sites not owned by the Council.

As agreed at the Housing, Homelessness and Fair Work Committee in November, through a Prior Information Notice (PIN), published on the Public Contracts Scotland website, the Council is looking to encourage the private sector, particularly investors, landowners and developers, to consider what ways they could work with the Council to accelerate the ambition to deliver 20,000 affordable homes by 2027.

The PIN focusses on three key areas: purchase of development sites, purchase of completed homes and an opportunity to propose innovative solutions such as leasehold proposals and partnerships.

The PIN also sets out a range of outcomes that the market must consider when putting forward proposals and overall gives the market an opportunity to tell the Council what they can do.

It will also help to inform the next steps, including whether there needs to be a procurement exercise and what that should look like. Establishing a structured approach to market engagement will allow the transparency and assessment of best value that the public sector needs but there is also a desire to make the process as accessible as possible and allow the Council to react to opportunities over the coming years.

Released through Public Contracts Scotland it is open for everyone to take a look, consider the options and register interest in this engagement process. The PIN will close on 31 January 2022.

Housing Convener, Councillor Kate Campbell, said: “Edinburgh needs more affordable homes. We’re doing everything we can through the Council’s own housebuilding programme, and working with housing associations, to provide social and mid-market homes. But we need to look at every possible way to create additional affordable housing – so I am really keen to see what ideas come from the private sector.

“I hope this process will create new and innovative ways to provide even more affordable homes that are so needed in our city.

“By going out to the market we’re asking the question of housing developers or landowners about what they could deliver now. But we’re also inviting them to start thinking about what might be possible, and how they can contribute to helping us deal with one of the biggest challenges facing our city.”

Vice Housing Convener, Councillor Mandy Watt, said: “We are looking forward to seeing what comes back in through this process. It’s an opportunity for the private sector to consider what they might be able to contribute to Edinburgh in terms of affordable housing.

“We expect any proposals submitted to fit with our strategy of providing affordable, good quality, sustainable homes that deliver value for money. We are open to both traditional and innovative ideas which achieve the outcomes that our citizens need.

“Some landowners or developers maybe interested in this but are unfamiliar with this process, so we’d encourage them to come forward and speak to our procurement team to find out more.”

If you have any queries on the PIN or accessing Public Contracts Scotland please contact Kelly Faulds Kelly.faulds@edinburgh.gov.uk

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