More support for tenants

New measures to help with housing costs during the pandemic

Emergency legislation extended to ensure no evictions until March 2021

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A new £10 million fund will be part of a package to support people struggling to pay their rent due to financial difficulty associated with the COVID-19 pandemic.

The Tenant Hardship Loan Fund will open later in the Autumn and offer interest-free loans to those unable to access other forms of support for their housing costs.

The Discretionary Housing Payment (DHP) fund which helps tenants in receipt of benefits will increase by £3 million, bringing the total to £19 million. This is in addition to the £60 million DHP budget already being used to fully mitigate the bedroom tax.

Emergency legislation put in place to protect private and social tenants from eviction during the coronavirus pandemic will be extended by six months, pending approval from the Scottish Parliament.

Ministers will also introduce new regulations to allow for the notice period for eviction for anti-social or criminal behaviour to return to one month to protect other neighbours.

Housing Minister Kevin Stewart said: “Tackling inequality and supporting people is a central theme of this year’s Programme for Government and this package of support for tenants is part of that.

“We already know that the pandemic has hit the lowest earners hardest and the Scottish Government has already put in place a range of actions in place to support tenants.

“This new £10 million fund, along with a further increase in our Discretionary Housing Payment funds, will mean that no one should be left in a position where they cannot access support to pay their rent. The intention is that this fund will open in November for those unable to access other forms of support to help meet their housing costs.

“We have been clear that no landlord should evict a tenant because they have suffered financial hardship due to the pandemic.

I fully expect landlords to be flexible with anyone facing such challenges, signposting them to the sources of financial support available, and tenants in difficulty should engage with their landlord and seek advice on the options open to them.

“I can confirm today that emergency legislation will be extended to ensure no evictions can take place until March 2021. However, since the initial legislation was introduced we have listened carefully to tenants and housing authorities concerned that a three month notice period is too long where tenants have behaved in an anti-social or criminal way. We are therefore reverting back to a one month period for repossession for such cases to ensure we can protect other tenants, neighbours and landlords who should not have to tolerate such behaviour.”

The Coronavirus (Scotland) Act ensures evictions cannot take place before end of September and this will now be extended for a further six months to March 2021.

The Tenant Hardship Loan Fund will open later in the autumn and further details of how to apply will be announced in due course.

Landlords encouraged to look forward to new academic year

SafeDeposits Scotland is working with landlords who provide student accommodation to help overcome challenges brought on by Covid-19, as the number of overseas students returning to the UK drops.  

During lockdown, the not-for-profit organisation reached out to landlords and tenants to provide advice and information around changes to the sector due to the pandemic. It works closely with all landlords including those that have been impacted by the decrease in students enrolling this academic year.

The Glasgow-based tenancy deposit scheme holds deposits on behalf of landlords and agents in line with government regulations designed to ensure responsible leasing.

As the sector continues to work towards pre-Covid-19 levels of activity, SafeDeposits Scotland is urging landlords to focus on providing the best renting experience for current tenants, while considering options to diversify their future tenant base.

Mike Smith, operations manager at SafeDeposits Scotland, said: “UK universities expect to see a £2.6 billion shortfall in the next academic year due to the pandemic, with 20% of domestic students not returning to university, and 75% of overseas students not enrolling this September.

“Pre-lockdown, demand for student accommodation in Scotland was notably high. Boasting some of the UK’s top universities, it’s no surprise areas including Aberdeen, Dundee, St Andrews, Glasgow and Edinburgh experienced an influx of students each year looking for housing.

But despite the drop in numbers of students expected to enrol this year, it’s evident there’s faith in the resilience of the sector, with a number of high-profile developments announced in the past month alone.

“Two recent Edinburgh examples of long-term growth within the sector include the new 120-bed purpose built student accommodation complex set to be built at Haymarket, while Unite Student has confirmed plans for a £24 million build of student flats at Meadowbank.”

To understand the concerns of landlords in the private rented sector during these unprecedented times more clearly, SafeDeposits Scotland carried out research to find out how they have coped during lockdown and how they feel about leasing property in the new academic year. 

Mike explained: “We’re confident demand for student housing will return, whether it is in the private rented sector or for purpose-built accommodation. However, until we have a clearer picture of what future academic enrolment figures are like, landlords could consider alternative ways to lease properties.

A good example is renting to young professionals that are looking to move away from home for the first time. The demands of these tenants are similar to students in the private rented sector, and it can be a way of keeping properties occupied until we know more about the future of higher education. 

“We recently carried out research with our landlords that are renting to students. This revealed that almost half (43%) secured new tenancies during lockdown while almost three quarters (73%) of this group expressed concerns around what this academic year will look like for them. 

“To alleviate concerns, we’ve been working closely with landlords to ensure the tenants they do have in place now have the best experience. To support, we’ve moved our face-to-face workshops online to offer free advice and information. Our Charitable Trust has also recently announced its funding towards research being carried out by the University of Stirling. This research is exploring the benefits of allowing tenants more flexibility to make a house a home.

“We believe having happy tenants leads to longer tenancies, creating more vibrant communities where people want to live. This boosts local economies and helps increase demand for rental property in that area.

“The property sector has been resilient during past economic challenges, but the full impact of the pandemic is yet to be seen. We know the government is working hard to support international students hoping to return to Scotland to continue their higher education studies. This will have a hugely positive impact for our landlords who rely on overseas students to rent their properties, and hopefully we will see the results of this work.

“In the short term, we urge landlords to implement safety guidance from the Scottish Government and manage risk wherever possible, while tenants adhere to the measures put in place.”

Charitable organisations welcome housing research report

The TDS Charitable Foundation and SafeDeposits Scotland Charitable Trust have welcomed a new report on compliance in the private rented sector produced by the UK Collaborative Centre for Housing Evidence (CaCHE) – part of a wider programme of work funded by the two charitable organisations.

The report, “Improving Compliance with Private Rented Sector Legislation”, explores how local authority enforcement and regulation in the UK’s private rented sector (PRS) could be improved.

The report details findings from 70 in-depth interviews with key stakeholders and professionals from 13 UK local authorities. The research finds considerable variation in stance, philosophy and approach to enforcement and compliance both across UK nations and also within them across local authorities.

The research was carried out by Dr Jennifer Harris, Professor Dave Cowan and Professor Alex Marsh of the University of Bristol – one of the 14 institutions in the CaCHE consortium which is led by the University of Glasgow.

The report makes a number of recommendations for UK policy makers, including:

  • Improving the data available to local authorities on the private rented sector.
  • Providing adequate funding to local authorities to allow them to develop appropriate and effective responses to the changing nature and context of the private rented sector.
  • Codification of the diverse legislative provisions which currently exist.
  • Providing sentencing guidelines to the criminal courts and tribunals to ensure that punishment is proportionate to the nature of the offence.

Professor Martin Partington CBE QC, Chair of the TDS Charitable Foundation, said: “With similar remits, both the TDS Charitable Foundation and SafeDeposits Scotland Charitable Trust work to raise standards in the private rented sector by advancing education on housing rights and obligations.

“This research is another example of the support we have given to many diverse and far-reaching projects within the rental industry. Together we are committed to bringing about a positive change that will benefit both renters and landlords.”

John Duff, Chair of the SafeDeposits Scotland Charitable Trust, added: “We are proud to support initiatives like this that support the work we do within the private rented sector.

“This is a comprehensive piece of research which we hope will stimulate debate across the industry, and ultimately create solutions to the issues identified as we work to continually improve the sector.”

The full report can be found at: https://housingevidence.ac.uk/publications/improving-compliance-with-private-rented-sector-legislation

The report has been published alongside two briefing papers:

Green light for Gilmore Place student accommodation

A planning application by S1 Developments for the St Joseph’s Nursing Home site at Gilmore Place has been granted unanimously – subject to conditions – by the city council’s Development Management Sub-Committee yesterday.

The committee voted in favour of a 230-bed student scheme, over 29 cluster flats, on the former Little Sisters of the Poor nursing home site. This C-listed main building includes a chapel.

The proposed project will see communal facilities installed in the retained and refurbished chapel, while existing east and west outbuildings and extensions will be demolished and replaced with new three storey accommodation around a retained landscaped courtyard. These buildings will be of high-quality stone and zinc and this will be a predominantly car free development with provision for 230 cycle parking spaces.

The proposal ensures an effective new use for a unique listed building and its grounds whilst causing the least possible harm.

The potential to deliver the site for another care home was not considered suitable for modern requirements, and upgrades to meet Care Commission standards were prohibitively expensive. Delivering housing was severely constrained by a number of factors including access constraints and the layout of the site.

The introduction of new build elements in order to deliver a viable proposal will only deliver  a 4 per cent increase in the current building footprint, while the delivery of a high-quality courtyard will see a 12 per cent increase in the green space.

The site is in an accessible location and close to university facilities.

Provision of new purpose-built student accommodation (PBSA) will support the growth and development of the higher education sector in Edinburgh. In doing so it will increase the range and choice of accommodation offered to students.

The current ratio of approximately three students per one bed space in Edinburgh, demonstrates the demand for new purpose-built student accommodation (PBSA).

A spokesperson for S1 Developments, said: “I’m delighted with the decision taken today by councillors. As an Edinburgh-based family company, we are thrilled to see this exciting project given the green light and look forward to breathing new life into this former nursing home.

“Redevelopment will restore the existing care-home building into high quality student accommodation, allowing the retention of the central chapel in its existing form.

“We look forward to getting these proposals underway and to continue working with council officials and the local community to deliver them.”

Urban Union sees an increase in new home reservations during lockdown

Since lockdown began at the end of March, Urban Union – a construction company which delivers large-scale, housing-led regeneration projects across Scotland – has handed over 23 properties and secured 52 reservations at its developments in Glasgow, Perth and Edinburgh.

To ensure none of its clients found themselves homeless during the coronavirus pandemic which put much of the UK housing market on hold, Urban Union has been using key safes, hosting video demonstrations and conducing handovers via FaceTime in order to continue operations in line with social distancing guidelines.

Urban Union, which is part of Robertson, one of the largest family-owned construction, infrastructure and support services businesses in the UK, has also been providing advice to those moving on how to do so responsibly to respect social distancing measures.

Neil McKay, Managing Director of Urban Union, said: “Coupled with the raising of the Land and Buildings Transaction Tax threshold for residential properties, it’s a promising sign for the industry that we have continued to see strong interest from new homebuyers.

“Despite the economic uncertainty and temporary hold on the property market, the extra time we’ve been spending at home has given many people the opportunity to reflect on what they want from their living spaces.

“Whether it’s extra room to work from home more comfortably or access to an outdoor space, many people will have re-evaluated their priorities when looking for a new place to call home and this has been reflected in the interest we have received over the last few months.” 

Urban Union currently has a collection of properties ready to be called home at Muirton Living in Perth.

The Anderson and the Grant at Muirton Living in Perth are one-bedroom apartments perfect for first-time buyers ready to get onto the property ladder, with prices starting from £105,000. Featuring a bright open-plan kitchen and lounge, the properties also benefit from wide hallways, a spacious bathroom and built-in storage throughout, giving a real sense of modern living.  The development also sits close to a number of shops and offers good transport links for those commuting to Perth city centre and Dundee.

Key workers interested in buying a new home at the Muirton Living development are also eligible to receive up to £2,500 from Urban Union as a thank you for their help and dedication during the COVID-10 crisis. 

The Ross and the Adam at Pennywell Living in Edinburgh are one and two bedroom apartments available from £140,000. 

Located only a few miles from the centre of Edinburgh, the development is ideal for those who work in the city centre with good bus services to and from the area. With a selection of primary and secondary schools, as well as a wealth of useful amenities in the area, the development would suit young professionals and families.

At Urban Union’s newest development – Pollokshaws Living in Glasgow’s Southside – there are a number of apartments available, including The Stewart, a one bedroom apartment priced from £160,000.

In addition, there are three types of two bedroom apartments – The Glen, The Collins and The Monteith – all of which start from £175,000.

For more information on the properties available, please visit

www.urbanunionltd.co.uk

Pay rises – but house prices rise higher

The team at Coulters Property have looked into the housing landscape for first-time buyers to discover how much you would need to be able to afford a 10% deposit around the country, how much this is as a percentage of average annual income, and how this has changed over the last 20 years.

https://www.coultersproperty.co.uk/first-time-buyer-changes

Scotland First Time Buyer Landscape (1999-2020)

1999202010 YEAR DIFFERENCE (£)10 YEAR DIFFERENCE (%)
House Price£49,924£152,469£102,545.00205.40%
Deposit£4,992£15,247£10,255205.43%
Earnings£16,914£30,000*13,08677.37%
Deposit % Earnings29.50%50.70%21.20%

*2019 earnings data used


You can clearly see that in Scotland, house prices have risen by 205.40% but earnings have only risen by 77.37%. The deposit as % of earnings has increased by 21.20%.

How Has Housing Affordability Changed in the UK?

  • In 1999, the average house price in the UK was just £77,961. Fast forward twenty years and that figure has almost trebled, to £230,735.
  • At the same time, the average income has also increased, but only from £17,803 a year to £30,353, an increase of 70%.
  • In 1999, a 10% deposit would have worked out at about 43.8% of your annual salary, these days, that figure has risen by about three quarters to 76%.

You can see the full research here.

Artisan launches new standards for sustainable homes development

Urban Regeneration Specialist Creates New Design Framework to Boost Low Carbon City Living

 

Niche homebuilder Artisan Real Estate has launched an ambitious new blueprint for sustainable development, responding to the changing requirements of local people and communities in a post-Covid world.

Smart, energy-efficient building design has been matched with an innovative approach to placemaking and community, introducing such creative concepts as green roofs, ‘edible’ gardens and green transport plans to sensitive city centre environments. 

Initially focusing on new homes’ projects in Edinburgh, the plan is geared to achieving low to zero carbon development – as well as creating a more open and landscaped environment to benefit general health and well-being.

Linking closely with the City of Edinburgh Council’s ‘Future Edinburgh’ strategy which aims to make the city carbon neutral within the next ten years, Artisan is now applying its radical design philosophy to two major developments in the city: Canonmills Garden to the north of the city centre and the recently acquired Rowanbank Gardens in the popular Corstorphine area and currently subject to a planning application.

“The challenges highlighted by the Covid 19 pandemic has accelerated the importance of changing the way we deliver new home development,” said Clive Wilding, Artisan’s Group Development Director.

We are now very much going above and beyond the existing Council guidelines as outlined in its ‘Future Edinburgh’ strategy. As well as reducing urban sprawl by optimising the number of people living in well-designed, sustainable homes in low car-use locations well-served by public and ‘self-propelled’ transport, we are also envisaging what people want from their living environment, post-Covid 19.

“Significant emphasis is placed on the quality of internal space and light to create enjoyable home-working environments, whilst accessible gardens and landscaping promote health and well-being by making nature and well-designed outdoor space integral to the day-to-day living experience.”

Artisan’s Canonmills Garden development, scheduled for completion in early 2021, has pioneered the integration of low and zero carbon generating technology.

This includes a combined heat and power system helping to support building energy loads whilst charging electric vehicles, reducing both building and transport CO2 emissions.

This strategy, combined with well-designed green roof spaces and climate responsive building facades, helps improve and enhance environmental integration, natural light provision and the quality of indoor and outdoor air.

Similar development principles have been applied to the major planning application for 126 new homes at Artisan’s Rowanbank Gardens.

The former care-home site in Corstorphine is set to answer the Council’s requirement for well designed, high density living whilst providing spacious communal areas and well-established public transport links ensuring low car ownership.

The development is designed around a central courtyard garden providing nearly twice the level of open space recommended by council planning policy, filled with fruit trees and communal planting and growing beds.  Apartments are designed for open plan living with large windows giving views of the courtyard and the wider area, while green roofs ensure benefits of surface water retention, insulation and ecology.

Artisan is perhaps best known in Scotland for large-scale city regeneration projects like the award-winning New Waverley, which has transformed the heart of Edinburgh’s historic Old Town.

The developer is now applying the same values and philosophy which has guided the successful design and execution of New Waverley to its residential developments, setting it apart from other major homebuilders in Scotland.

Remaining true to our urban regeneration credentials, at the heart of all Artisan’s developments is building a strong sense of place,” adds Clive Wilding.  

“We are specialising in niche urban developments in the most exciting parts of the city centre, creating a high-value premium product for a wide range of homebuyers, including young professionals, families and downsizers. 

“Artisan now has an opportunity in Scotland to set a new benchmark for high quality urban regeneration in sensitive city-centre environments – whether it be commercial, residential or mixed-use.

“Our track record in Edinburgh and in Scotland has given us a strong understanding of the importance of high quality placemaking, which is at the heart of all Artisan’s developments.”

For more information on Artisan’s developments in Scotland and the UK visit:

www.artisanrealestate.co.uk,

www.rowanbankgardens.com

www.canonmillsgarden.com

Housing and homelessness: biggest challenges are still to come

The response from organisations working to prevent homeless during the pandemic in Edinburgh has been phenomenal (writes Councillor Kate Campbell, Edinburgh’s Housing, Homelessness and Fair Work Convener).

The council’s homelessness service has been working with the Scottish Government, third sector, the police, the NHS, social care and volunteers to provide housing, food, health care, advice and support throughout the lockdown period.

Front line workers and volunteers have powered this work, putting their own health at risk to make sure that our most vulnerable residents are supported. We owe them a massive thank you.

And what is even more phenomenal is the level of engagement we’ve received in return. Turns out showing that you actually care builds trust. So people we have been describing as ‘hard to reach’ have actually been reached, and are engaging, and are being supported on the journey to permanent housing.

So we have learnt a lot – things, frankly, we already knew. But now we can evidence them. If you put in all the support upfront, then people will engage. You have to take services to people and they have to be tailored to meet their needs.

It has cost a lot in the short term, but we also need to learn the lessons about what we are saving in the longer term. Not just money on future services that hopefully won’t now be needed. But life chances, health outcomes, dignity, respect.

There’s a big debate here. And one we need to manage carefully: when our city shut down, suddenly we were able to end rough sleeping.

Now partly it’s to do with resources. It was a public health emergency and so funding became a secondary consideration. And we were allowed, because of public health, to spend money accommodating people with ‘no recourse to public funds’ – where their immigration status means a person isn’t entitled to any benefits, even if they have the right to remain in the UK. Usually the law prohibits us from doing this.

The other thing that happened is accommodation became available to us. Short term let properties were suddenly accessible for people experiencing homelessness. Hotels opened their doors to people who had been rough sleeping.

And we have to be honest. This is about supply and demand. There was no demand from tourists, so residents were the only market.

We will welcome visitors back to the city in the months and years to come. We need to make sure that the balance is right. That visitors are not staying in accommodation that could be used as homes. And we need to support hotels who employ more people, are tightly regulated and have to pay their business taxes.

So we will be pressing ahead with controls on short term lets as they pass into legislation, whether that’s licensing powers or through planning. It’s important for both the hospitality sector, and for our residents, that homes stay as homes after the pandemic.

But there will be more challenges to come. We know that there will come a point when we are no longer legally allowed to accommodate people with no recourse to public funds. The idea that we will have to say, because of the law, that people must leave their accommodation – and we will know that they have nowhere to go – is horrific.

We have limited powers (unfortunately we can’t change legislation at Westminster from the city chambers) but we can start to plan pathways, look at options and work with our partners. Kevin Stewart, Scotland’s Housing Minister, has written to the UK government. We will need to work with the Scottish Government to make the case for legislative change – and funding to go alongside it.

We know too that the economic situation is likely to worsen before it gets better. We know that we are likely to see job losses as the furlough scheme winds down and that alongside this there is a risk of increased homelessness.

We need to increase preventative work to help keep people in their homes. Advice and support are crucial so that people are able to access the benefits they are entitled to and receive help with housing costs. It’s also vital people know their housing rights.

We will also need to increase the supply of temporary accommodation, and make sure that accommodation is suitable for the people that need to stay in it.

Ultimately though, we want people to move into permanent, secure and safe homes – so our housebuilding programme, and the provision of social housing, will be even more critical than ever.

We’ve reconvened the homelessness task force to look at all of this. To have a space where we can learn best practice from each other – and there is so much innovation happening – and where we can share our concerns about what we see coming down the line. And work together to plan solutions.

In the months ahead we will need to keep re-evaluating, and planning, and adapting. This crisis is far from over. But the strength of the partnerships we have now across the city, and the enormous determination to work together to overcome any obstacles, give me confidence that we will collectively rise to the challenges that come.

This article first appeared in the Edinbugh Evening News