housing – Page 18 – The NEN – North Edinburgh News

Over 80% of tenants satisfied with renting, according to new research

Most people renting their home in the private rented sector are happy with their property and landlord, according to new research from independent think-tank the Social Market Foundation.

The Social Market Foundation found that – contrary to some narratives suggest renting is an inherently unhappy experience – a majority of people who rent from a private landlord are content with what they get for their money.

In an SMF survey of renters, 81% said they are happy with their current property, and 85% said they are satisfied with their landlord.

The greatest source of dissatisfaction among tenants is with “being a renter”, though only a minority of renters (34%) said they are dissatisfied with this status. The SMF said that this suggests that where people are unhappy in the private rented sector it is not about their living circumstances, but about the fact of having to rent rather than own a home.

The SMF findings are contained in a report on the future of the private rented sector which is published today. The report was sponsored by Paragon Bank. The SMF retained editorial independence.

The SMF said despite renters’ current views of renting, major trends in housing over the coming years mean that several policy changes are needed to ensure the rented sector continues to work well for tenants.

Only half of renters expect to leave the private rented sector in the next 15 years, suggesting that significant numbers will remain renters for long periods. Among them, the SMF finds that 13% would be satisfied with long-term renting.

That will see the average age of tenants rising: by 2035, more than half of private renting households are likely to include someone aged 45 or older, the SMF forecast. Couples and families will also make up a rising proportion of renters.

The private rented sector has been under political scrutiny, with the UK Government’s Levelling Up White Paper promising “a secure path to ownership” and a crackdown on “non-decent rented homes”.

Labour, meanwhile, has promised to be the “party of tenants” and raised concern about quality, affordability, and security in private rentals.

The SMF’s research challenges some of the narratives around this policy agenda, and in particular, the assumption that private renting is unsatisfactory and exploitative for the typical renter.

At the same time, it acknowledges that a minority of renters have particularly negative experiences and so endorses measures expected to be in the rental reform white paper (due in spring), such as abolition of ‘no-fault’ evictions and introduction of a Decent Homes standard for rental properties.

The SMF’s key recommendation is to enable renters to build wealth while remaining in the private rental sector, addressing their number one concern: the financial opportunity cost of renting, which have prevented savings, for a deposit or later life needs.

Several innovative schemes could be implemented, including ‘deposit builder ISAs’ that offer a financial return on deposits, or ‘rentership’ models that offer tenants stakes in their building.

Other SMF recommendations to the UK Government:

Increase the stability of tenancy agreements – A large majority of renters support a fixed minimum contract length: 69% would be in favour of setting this at 24 months.
Giving renters more control over their homes – making it easier to keep pets or make reasonable alterations, such as to décor or energy efficiency.
Increase the accountability of landlords – Through a ‘Good Home, Good Landlord’ kitemark scheme, developed in consultation with renters to recognise landlords that offer good, and not just decent, accommodation.
Improve the standards of private rented properties – Offer tax incentives for landlords to invest in improvements that align with Good Home Good Landlord kitemark standards, including green investments.

Aveek Bhattacharya, SMF Economist and one of the report authors, said: “Dominant cultural narratives about the private rented sector paint a misleading picture. In contrast to the horror stories that get wide circulation, the majority of renters are satisfied with their living conditions and have decent relationships with their landlords.

“It is absolutely right that the Government should seek to help the minority with poor standard accommodation and unprofessional landlords.

“At the same time, it needs to think harder about what it can offer the typical renter – who is largely happy with their circumstances today, but has doubts about whether they want to keep renting long-term.”

“Giving renters more control over their homes – allowing them to keep pets or decorate would help. So would incentivizing landlords to make improvements to properties to make them good, and not just decent. But perhaps the biggest challenge is developing policies that can persuade renters that they are not missing out financial security and stability if they don’t own their home.”

Paragon Bank Managing Director of Mortgages Richard Rowntree said: “The outdated and tired cliches around privately renting need to be challenged and I welcome the findings from SMF’s report.

“In our experience, the vast majority of landlords seek to provide a good quality home and enjoy a healthy relationship with their tenants; the significant investment in private rented property by landlords has helped drive up standards over the past 15 years and today homes in the sector are generally newer, larger and more energy efficient than ever before.

“We always seek ways to improve the experience of renting further and welcome the recommendations contained in the report. People from all walks of life now call the private rented sector home and we must strive to create a sector that meets everybody’s needs.”

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Councils are failing to deliver social homes for 7,500 homeless children, says Shelter Scotland

Council leaders are failing children across the country when it comes to social housing according to Shelter Scotland.

Ahead of the local authority elections in May, the housing charity has said council leaders need to urgently step up in order to tackle the deepening housing emergency.

In Glasgow alone there are 2,480 children stuck in temporary accommodation, while 1,515 children in the capital face the same situation. In Aberdeen, a household with children spend 103 days in temporary accommodation on average, while in Dundee that figure rises to 285 days.

Shelter Scotland’s analysis of council’s housing plans* shows that a minimum of 7,000 social homes are needed over the next five years in Edinburgh, 3,675 in Glasgow, 853 in Aberdeen and 655 in Dundee.

Each of the local authorities in those cities failed to deliver on their previous affordable housing targets.

Director of Shelter Scotland, Alison Watson, said: “Right now, thousands of households, including thousands of children, are trapped in temporary accommodation. Often, they’re living in cramped conditions which are entirely unsuitable. Many of them have been living in so-called temporary accommodation for months or, in some cases, years.

“Living in temporary accommodation can have devastating effects. It disrupts children’s learning, it places huge strain on family life, it can ruin people’s health. In the face of a deepening cost-of-living crisis this problem is only going to get worse unless action is taken now.

“As more people are exposed to the risk of homelessness, only social housing can stem the tide. The Scottish Government has promised the cash for new social homes, we need to keep fighting to make sure they’re actually built.

“With the local elections just around the corner our cities’ leaders can’t shirk their responsibilities. We need them to step up and finally contribute to building a future where everyone in Scotland, without exception, has their right to housing upheld.

“The scale of the challenge is clear, but council leaders must rise to meet it. The thousands of children without the security and safety a permanent home provides can’t wait a second longer.”

Shelter Scotland has launched a new campaign asking people to demand that council leaders pledge to build social housing.

For more information and to sign the petition, visit:

https://act.scotland.shelter.org.uk/social-housing-edinburgh

Short-term lets: professional advice is ‘the only real safeguard for owners’

As Edinburgh tightens the net on Airbnb-style short-term lets, what are the options for property owners and landlords?

By Calum Allmond

It was always on the cards that if restrictions were to be introduced on short-term letting in Scotland, Edinburgh would be first out of the blocks. And, sure enough, the council last month introduced a city-wide “control zone”.

The capital, which for obvious reasons is the country’s tourist Mecca, has become a magnet for Airbnb-style short-term lets over the last decade, leading to concerns about housing shortages and perceptions about anti-social behaviour.

Under draft proposals which will now go to Scottish Government Ministers for final approval, property owners will soon need planning permission to be able to operate short-term lettings and will have to apply for a change of use certificate from the planning department.

What is less well known is that the council has always had the power to require planning permission in the event of a material change in environment, such as short-term rentals. The difference is that, from now on, this will be mandatory.

It should be noted that the proposals only apply to secondary lettings, i.e., properties which are not an owner’s primary residence. People will still be able to let out their homes while on holiday, or rooms in their home while they remain in residence.

However, while the new restrictions appear to be forging ahead, it still remains unclear what policies the local authority will eventually apply. The current Development Plan – the overarching guide to future council thinking – makes no mention whatsoever of short-term lets.

Nor, surprisingly, does the document designed to replace it, the City Plan 2030, which again does not concern itself with the issue – making it increasingly difficult for property owners to plan ahead.

One can only speculate at the moment about whether permissions will be granted for continued short-term use, and on what grounds. Nor is there any clarity about whether numerical limits will be imposed.

Were there to be limits, it would be reasonable to assume that applications would be allocated on a first-come, first-served basis, so landlords hoping to remain in the market might be advised to act sooner, rather than later.

There is, of course, an existing provision in law whereby if a short-term let has been operating for more than 10 years, with no action against it by the council and no action to conceal its operation, then it is entitled to a Certificate of Lawfulness to continue operation, though necessary evidence will be required.

As of the start of this month, there have been nine applications so far this year for planning permissions for short-term lets, only two of which have been granted – and they both involved Certificates of Lawfulness.

What to do if applications fail is clearly now a matter of immediate concern for property owners and DM Hall’s specialist rural arm Baird Lumsden is currently embarked on an information campaign around the sales, letting and management options which remain open.

It has gone into the issue in depth, in anticipation that Highland Council will be the next authority to impose short-term let restrictions around the Badenoch and Strathspey area, and is reaching out to concerned parties.

Informed and impartial advice of this nature is something of a port in a storm for property owners who are caught between a rock and a hard place as the restriction net tightens.

There has been anecdotal evidence of landlords exiting the short-term market and moving to longer lets in the private rental sector. But regulation in this sphere of activity is getting stricter all the time, and the imminent New Deal for Tenants will do nothing to ease landlord pain.

On a superficial level, it is easy to understand the council’s hope that properties taken out of short-term lets will find their way back into the housing stock, thus easing ongoing shortages.

But a counter-argument, articulated by bodies such as the Association of Scotland’s Self-Caterers, is that lack of house-building is as much of a contributory factor to shortages, and that short-term lets bring in huge volumes of valuable tourism revenue to the city.

As things are, some smaller operators may indeed be forced to sell up and quit the market, although larger letting concerns will almost certainly continue to jump through the necessary hoops.

In this volatile environment, expert professional advice is the only real safeguard, and prudent property owners and landlords will seek it out as timeously as possible.

Calum Allmond is Head of Architectural Services at DM Hall Chartered Surveyors.

For further information, contact DM Hall Chartered Surveyors, 27 Canmore Street, Dunfermline KY12 7NU. T: 01383 621262. E: dunfermline@dmhall.co.uk.

W: www.dmhall.co.uk http://twitter.com/dmhallLLP.

For further information about DM Hall’s nationwide network, please contact:

Caroline Wayte, Marketing Manager

M: 077863 62517

DM Hall, 12 Bothwell Street Glasgow G2 6LU

E: caroline.wayte@dmhall.co.uk

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Number of new mortgages in Scotland up 24 per cent last year

Rise in mortgage demand fuelled by appetite to buy homes with more space, and the Land and Buildings Transaction Tax (LBTT) holiday
There was a 22 per cent increase in first time buyer mortgages, and a 27 per cent increase in mortgages for people moving home in 2021 compared to 2020
The loan-to-income (LTI) ratio for all homebuyers hit its highest level in 2021

Demand for homes with more space during the pandemic helped drive a 24 per cent increase in new mortgages in Scotland in 2021. Figures from UK Finance show that there were 70,190 new mortgages approved during 2021, up from 56,450 in 2020.

The total overall new mortgage figure is made up of first-time buyer mortgages and homemover mortgages:

First-time buyer mortgages were up 22 per cent to 35,100 (2020: 28,740). This is also up from the pre-pandemic level of 32,630 in 2019.
Homemover mortgages were up 27 per cent to 35,090 (2020: 27,710). This is also up from the pre-pandemic level of 33,620 in 2019.

At the same time, the loan-to-income (LTI) ratio for homebuyers hit its highest level, reflecting the strong growth in house prices.

The LTI ratio is the number of times greater the amount a mortgage is compared to the total income of the borrower. For first-time buyers in Scotland this reached 3.24 in the final quarter of last year, while it was 2.97 for homemovers.

This is compared to an average LTI of 3.59 and 3.37 for first-time buyers and homemovers respectively across the whole of the UK.

Lee Hopley, Director of Economic Insight and Research, said: “Appetite to buy or move home was up last year with demand boosted from the LBTT holiday and changing housing needs from the pandemic.

“The increase last year follows suppressed activity in 2020 at the start of the pandemic, but it’s notable that homebuying numbers in 2021 also exceeded those in 2019.

“We expect to see a return to a more stable mortgage market this year with continued appetite to buy property; however, the pressure on real incomes from rising inflation is likely to bear down on effective demand.”

Over £106m contributed to the economy by Barratt East Scotland

– Housebuilder supports 1,652 jobs, completes 732 new homes and 13.1ha of green space –

Barratt Developments Scotland, which includes Barratt Homes and David Wilson Homes, has made a substantial contribution of £256.3m to the Scottish economy, with the housebuilder’s East Scotland division supplying £106.9m in GVA itself.

In the year ending 30 June 2021, Barratt East Scotland has also completed 732 new homes of which 144 were affordable and supported 1,652 direct, indirect and induced jobs across the region.

2021 also saw the largest UK housebuilder reinforce its commitment to creating homes for nature as well as people. The business created 13.1ha of public green spaces and private gardens around the region, the equivalent of 19 football pitches, to help support wildlife on and around its sites.

Barratt is working towards reducing its direct carbon emissions by 29% by 2025 and indirect emissions by 24% per square metre by 2030. In the past year, CO2e emissions per 100m.sq. of completed build area fell to 2.25t. across the East Scotland business.

98% of construction waste was also saved from landfill and 26% of new homes were built on previously developed land, up 54% on the previous year.

Alison Condie, managing director for Barratt East Scotland, said: “As the UK’s largest housebuilder, and one of the most sustainable, we place considerable emphasis on supporting people, the environment and generating strong economic growth for the region.

“To have contributed over £106m to the economy and supported over 1,652 jobs is a fantastic achievement and we’re determined to do even better this year.”

As part of its housebuilding activity, Barratt East Scotland has made £5.4m in local contributions to help build new facilities and community infrastructure. This contribution includes the provision of 320 new school places.

More than £19.3m has also been spent on physical works within communities, such as highways, environmental improvements and community facilities.

Other key findings from the Barratt East Scotland 2021 socio-economic report include:

· Increased support for public services with £23.9m in generated tax revenues

· Over £36,400 donated to local charitable and community causes

· 284 supplier and 335 sub-contractor companies supported

· Increased support for the UK supply chain with 90% of all components centrally procured, assembled or manufactured in-country

· More than £10.7m in retail spending by new residents, helping support 114 retail and service-related jobs

The development of new and future talent remains a key priority for Barratt Developments Scotland and 53 graduates, apprentices and trainees launched their careers with the company in 2021, 15 from the East Scotland Division.

The assessment of Barratt Developments’ performance was carried out by independent consultants Lichfields, who analysed socio-economic impacts through the delivery chain for new housing based on Barratt datasets, published research and national statistics.

Contract agreed for Waterfront’s Western Villages project

Part of the City of Edinburgh Council’s major £1.3 billion regeneration of Granton Waterfront, the Western Villages project, will now be taken forward by CCG (Scotland) Ltd following a competitive tender process.

On track to begin construction in mid-2022, Western Villages will offer a mix of one, two- and three-bedroom flats with wheelchair accessible homes and a range of tenure options including social, mid-market rent and homes for sale.

The masterplan for the area will take account of the sea views and the nearby parkland, and will focus on active travel, electric car charging points, car club spaces and public transport links.

The decision was taken by the Finance and Resources Committee on Thursday (3 March).

The City of Edinburgh Council Depute Leader, Cammy Day, said: “Particularly on the back of COP26 and our own 2030 Climate Strategy, approving this contract gives us certainty that that we’ll be able to deliver this major aspect of the Council’s £1.3 billion Granton Waterfront regeneration.

“Housing will be integral in meeting our net zero ambitions by 2030 and Western Villages will be a gold-standard for other new development across the city.

“The wider regeneration project will also create one of Europe’s largest coastal city parks, providing opportunities for residents and visitors to reconnect with the city’s waterfront by offering more areas for leisure and outdoor experiences, civic spaces and sustainable housing.”

Convener for the Housing, Homelessness and Fair Work committee, Councillor Kate Campbell, said: “The decision by Finance and Resources Committee is great news and will help us deliver this development, which will help us accelerate the delivery of affordable homes. Granton’s regeneration is a key part of our commitment to build 20,000 social and affordable homes by 2027.

“The steps we’re taking now to make homes more sustainable will make homes easier and cheaper to heat, which helps us to tackle climate change. But it’s also crucial for tenants, reducing fuel bills at a time where the cost of living crisis is pushing too many people in poverty.”

Partnering with CCG (Scotland) and architect Cooper Cromar in the creation of the new housing, the Council is also adopting CCG’s new Net Zero Home housebuilding standard for this build which will support its ambition of achieving net zero by 2030.

This standard brings improved insulation, low carbon heating and renewable technology that will help the Council make big strides in building sustainable housing for its residents.

Over the next 15 years, 3,500 net-zero carbon homes, a low energy heat network, a primary school, health centre, commercial and cultural spaces, sustainable transport provision and a new coastal park are all planned to be delivered in Granton Waterfront alongside progress underway in growing a cultural and arts cluster.

Newington Residences launch to market this weekend

A selection of four-bedroom townhouses and a three bedroom mews home available in first release at Royal Blind School site

THE FIRST release of homes at the anticipated redevelopment of Edinburgh’s former Royal Blind School and Braille Press will launch to market this weekend (26^th of February).

Launching from its existing Cammo Meadows development, Cala Homes (East) has confirmed that the first release of four bedroom townhouses along with a three bedroom mews home – will be available for interested buyers, with prices ranging from £810,000 to £849,995.

Located in the heart of Edinburgh’s popular Newington area, Newington Residences by Cala Homes (East) will comprise a modern reimagining of the striking original school building into 21 apartments and a further mix of new build townhouses.

Regarded as one of south Edinburgh’s best-known buildings, the original school building dates back to 1874 and has been left vacant since 2014 after pupils were relocated to a new facility.

Cala will take it back to its former glory – removing extensions and outbuildings to revitalise its surrounds.

Building on the success of its award-winning conversion of the nearby former Boroughmuir High School, the developer will refurbish the historic main building into a selection of 21 one, two and three-bedroom apartments, with selection of new build townhouses a mews home and the fully refurbished gate house also featuring within the school’s attractive landscaped grounds.

Philip Hogg, Sales Director for CALA Homes (East), said: “This is a really exciting development for us, in one of Edinburgh’s most desirable postcodes.

“There’ll be a great mix of homes likely to appeal to a broad range of discerning buyers looking for high specification finishes and a tranquil location within easy reach of the city centre and the amenities Edinburgh has to offer.

“We believe the attractive renovation at the heart will give the development real character and charm, while preserving a historic local landmark.”

The development, within the Craigmillar Park conservation area has been carefully designed to respect the surrounding area, with new build homes boasting beautiful sandstone detail in keeping with local architecture and facades of the main building.

Townhouses will range from 1600 to more than 2700 square feet, with a mix of semi-detached and terraced properties.

Sporting ceiling heights of up to 3.4 metres and many with views of Edinburgh castle and the city skyline, the apartments will see the creation of modern open-plan homes, maximising the features of the existing building, whilst delivering contemporary design, high specification and convenience with the addition of lift access to upper floors.

The first buyers are planned to move in from summer 2022, with show homes launching in April.

For more information on Newington Residences – and to register your interest – visit:

https://www.cala.co.uk/homes-for-sale/scotland/edinburgh/newington-residences-edinburgh/

Over 80% of renters already rent burdened as cost of living set to soar

New data reveals the shocking amount of money being spent on rent every month, on top of drastic cost of living increases set for April

Over 80% of renters are spending more than 30% of their take home pay on rent every month, with women hit the hardest
Almost one in three (29%) are spending more than 50% of their monthly pay on rent
Over 85% of women spend more than 30% of their income on rent, 10% more than their male counterparts
59% of renters don’t believe their rent is affordable

New data by flatshare site SpareRoom reveals the shocking amount of money being spent on rent every month, with over 80% of renters spending more than 30% of their take home pay on rent, and almost one in three (29%) handing over more than 50% of their pay.

People spending more than 30% of their household income on rent are traditionally considered ‘rent burdened’, those who spend over 50% are considered ‘severely rent burdened’. SpareRoom’s data shows the majority of renters are currently ‘rent burdened’. This means many will already have difficulties affording necessities including food, transport and medical care on top of rent, not to mention finding money for increases in living costs come spring.

With increased energy bills and national insurance costs looming, women are most likely to feel the pinch, with over 85% spending 30% or more of their income on rent, compared to 75% of men, highlighting the affordability gap between men and women.

Unsurprisingly the data showed people in London, South East and South West England are spending more of their take home pay on rent than in other regions – 84% of Londoners, 83% of South East and 82% of South West spend over 30% of their salary on rent*.

The pandemic saw rents drop in London and increase everywhere else, but recent data from SpareRoom’s Rental Index now shows the capital’s rents are back on the up, which will no doubt cause more of an affordability issue for Londoners.

Matt Hutchinson, SpareRoom director comments: “The general rule of thumb for affordability has always been that you should spend around 30% of your income on rent.

“Even before the pandemic hit that definition felt outdated, but we’re about to see people’s financial situations hit hard over the coming months and years. With over 80% of the UK already rent burdened, and almost a third spending over half of their salary on rent, people are already feeling the squeeze.

“Although wages are rising, they aren’t growing fast enough to make up for cost of living increases that are rising at their fastest pace for 30 years**. This doesn’t just affect renters, it also makes life difficult for the huge numbers of young people who moved back home to their family over the course of the pandemic, not to mention those who were already there.”

Survey conducted by SpareRoom in January 2022 with 11,130 respondents

* What % of your monthly take home pay goes on rent?

Region	Over 30% of salary on rent	Over 50% of salary on rent
East Anglia	80%	29%
East Midlands	73%	25%
North East	65%	17%
North West	74%	24%
Northern Ireland	52%	13%
Scotland	73%	30%
South East	83%	32%
South West	82%	31%
Wales	75%	28%
West Midlands	73%	26%
Yorkshire and Humberside	69%	21%
London	84%	30%

** https://www.independent.co.uk/news/consumer-prices-inflation-london-rishi-sunak-jonathan-reynolds-b1996254.html

Kate Campbell: Why we’re choosing to freeze rents for our council tenants

Housing, Homelessness and Fair Work Convener, Cllr Kate Campbell wrote in yesterday’s Evening News about how the council’s housing budget is managed:

The council’s housing budget is entirely ringfenced from the rest of council spending. Tenant’s rent is only spent on housing: services for council tenants, repairs, large scale upgrades to existing homes – things like new roofs or lifts or windows – and building new council homes.

Every year we set a one year budget, which includes setting rent levels for the coming year; a ten year strategy which sets investment plans for new and existing homes; and a 30 year strategy which makes sure that the HRA remains healthy and that we can afford all of the investment we want to make.

And there is a lot of investment we want to make. We’ve proposed £2.9bn of investment in council housing over the next ten years. Much of this is about building desperately needed new council homes to replace the stock we lost through the Right to Buy policy, which has sadly seen many former council homes turn into unaffordable private lets.

We’ll also invest £850m in existing homes. Energy efficiency measures are a big part, improving the quality of life for council tenants and resulting in warmer homes that are cheaper to heat.

We’ll continue with improvements inside tenant’s homes but also spend money on communal areas and the wider estates. Tenants have said they want better bin stores, playparks, community growing spaces, benches, landscaping and planting. This will make outdoor space useable, safe and bring a wealth of wellbeing benefits.

We can’t compromise our ability to make these investments. They’re crucial to the quality of life for tenants. Which is why proposing a rent freeze this year was a hard decision to make.

Due to Covid, there have been delays to construction. At points sites were completely closed, but there have also been social distancing and health and safety requirements that have slowed work down over the last two years.

So there has been an underspend. This means that although over the ten-year plan we need the additional funding we would have got from a 1.8% rent increase, we don’t need it now. We can freeze rents and not affect investment as long as it is made up from slightly higher increases in later years.

And right now we have a cost of living crisis which is hitting people on the lowest incomes the hardest.

We’ve already seen the cut of £20 a week to universal credit – a loss of over £1000 a year to many families in Edinburgh. Energy prices have rocketed, with predictions that they’ll continue to rise.

Too many people face the stark choice between feeding their families and heating their homes. And from April 2022 there will be an increase in National Insurance contributions.

And the ONS announced last week that inflation is the highest it’s been for nearly 30 years. But while overall it’s 5.4%, essentials go up by much, much more. Again, hitting people already struggling far harder.

So a rent freeze in this exceptional year feels like a difficult choice, but the right one.

It surely goes without saying that the rent freeze has nothing at all to do with the Council elections coming up in May, of course! – Ed