Tag: private rented sector

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 

Shocking new research shows the Scottish private rental market is unaffordable

92 per cent of the private rented sector in Scotland is unaffordable for people claiming benefits

New research commissioned by the Chartered Institute of Housing (CIH) Scotland in partnership with Fife Council highlights the shortfall between Local Housing Allowance (LHA) and the actual cost of renting a home in the private rented sector (PRS).

The research, conducted by the UK Collaborative Centre for Housing Evidence (CaCHE) and based on analysis of Zoopla data on advertised rents, found that:

  • Across Scotland, just one in 12 advertised properties in the PRS (eight per cent) are covered by LHA
  • Aberdeen and Shire had the largest percentage of “affordable” properties at 19.7 per cent, still significantly below the 30th percentile West Dunbartonshire had no properties available at or below the LHA rate
  • The average shortfall in rent for a two-bedroom home was £108.10 per month
  • The smallest difference was found in Aberdeen and Shire at £6.64 per month, in Greater Glasgow the shortfall was £201.78 per month.

The report concludes that, “the PRS is now largely unaffordable to new entrants or those seeking to move within the sector who are in receipt of LHA.” It recommends:

  • Reinstating LHA at the 30th percentile in the short-term. This is likely to cost around £98 million per year in Scotland. This cost could be covered by the UK Government or a ‘top up’ by the Scottish Government similar to ‘bedroom tax’ mitigation in the social rented sector.
  • Reviewing the process for setting LHA in the longer-term, including consideration of how rental data is gathered and the geographical boundaries of BRMAs.
  • The Shared Accommodation Rate (SAR) which limits single people under the age of 35 to a room in a shared home, rather than a one bedroom home, is unfair and impractical, and consideration should be given to scrapping it.

Gavin Smith, Chair of CIH Scotland said: “The PRS is a vital part of our housing system and can play a greater role in preventing and responding to homelessness in Scotland.

“We cannot ignore the link between affordable housing supply, the rising number of people in temporary accommodation and the emergence of Scottish councils having to declare housing emergencies.

“The PRS plays a vital role but must be affordable and as this research shows freezing LHA rates has had a devastating impact on its affordability for those that need it the most. All UK governments must urgently unfreeze LHA rates”

Andrew Watson, lead author of the research by the UK Collaborative Centre for Housing Evidence (CaCHE)  added: “Due to changes in housing choices and a lack of social housing, the PRS plays a critical role in the provision of homes for households in receipt of LHA.

“A combination of rising rents and frozen LHA rates have rendered the sector unfordable for those seeking entry, whilst also limiting the ability of existing tenants to move within the sector.

“The lack of affordability has many drivers, but the actions of UK and Scottish Governments (and in particular the freeze in LHA rates and the introduction of rent caps) have played a significant role. It is therefore reasonable to expect that government action will play a key role in addressing the problem.”

You can read the research report in full here, which includes a breakdown of the findings by region and property size.  

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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Edinburgh tenants could cash-in on share of six figure windfall

  • Edinburgh residents could be due share of £210,776
  • The capital city has the largest number of unclaimed deposits – with one worth £3,484
  • More than 1,000 long-standing tenancies in Scotland have an EH postcode
  • One city resident reunited with deposit seven months after moving, thanks to SafeDeposits Scotland

SafeDeposits Scotland has revealed that tenants in Edinburgh could be due a share of £210,776, after failing to claim back deposits at the end of their tenancies.

The Glasgow-based tenancy deposit scheme holds deposits on behalf of landlords and agents in line with government regulations designed to ensure responsible leasing. When a tenancy ends and all parties agree to repayment, the scheme will then release the funds back to the tenant.

Currently, the EH postcode has 700 unclaimed deposits with a combined value of £210,776, with one individual claim worth £3,484 – the highest in Scotland. In total across Scotland, there are 2,513 unclaimed deposits, amounting to £690,383.

One Edinburgh resident, Fraser Hamilton, was recently contacted by SafeDeposits Scotland about his unclaimed deposit after he left his property seven months ago.

Fraser said: “I moved out of my flat near Fountain Park just before lockdown and I completely forgot about the deposit. A part of me just assumed that my landlord would have my details and send it to me when it was ready. Between that and the moving process itself, it just slipped to the back of my mind.

“Obviously, this isn’t how the process works so when I received the call from SafeDeposits Scotland, it was great to hear I’d be getting this money back. It was as simple as sharing my bank details and soon enough, my deposit was back in my account. It’s a great boost, especially just before Christmas, and I’d urge anyone else moving to remember to claim their deposit back.”

In 2020 to date, SafeDeposits Scotland has tracked down 1,093 tenants across the country that had forgotten to claim their deposits back. The not-for-profit organisation has so far managed to return £416,887 from the scheme to these tenants this year.

Research carried out by SafeDeposits Scotland also looked at the quantity of deposits the scheme holds for longer-standing tenancies. The average tenure length for tenancies with deposits protected by SafeDeposits Scotland is just over 2.5 years, however the scheme found over 4,500 active deposit accounts for tenancies of 10 years or more.

There are more than 1,000 long-standing tenancies in the EH postcode area alone, with a deposit for one tenancy in Peebles starting in 1976. While many of these tenancies will still be active, there may be some cases where a tenancy has ended and none of the parties have ever instigated the repayment process.

Mike Smith, operations manager at SafeDeposits Scotland, said: “Edinburgh has the largest amount of private rented sector homes in Scotland with 62,000 currently in the market*. And it’s our job to make sure deposits are kept safe, and that both landlords and tenants have access to our dispute resolution service should there be any disagreement once the tenancy ends.

“The private rented sector in Edinburgh accounts for 25% of the capital’s entire housing market, and with the city recently awarded the top UK place for millennials to live, we predict the sector to continue growing as more people, especially young adults, chose to work and live in Edinburgh.

“Our research revealed that 700 people who lived in or around Edinburgh have left their homes without claiming back their deposit. This figure relates to where the landlord has instructed for the deposit to be repaid to the tenant, but the tenant hasn’t completed the process to receive their funds.

“We know moving home can be quite hectic but there’s no reason why a tenant shouldn’t claim what money they’re entitled to when they leave.”

Any surpluses generated by SafeDeposits Scotland are donated to its related charity, the SafeDeposits Scotland Charitable Trust.

Among the organisations to have received funding from the Trust this year is Edinburgh-based Deaf Action which, with a grant of £20,000, is developing a project to support Scottish landlords and tenants affected by hearing loss.

If tenants in Scotland think they have left a deposit with SafeDeposits Scotland unclaimed from a previous tenancy, they should enquire with the scheme on 03333 213 136.

Landlords can be loveable too!

Landlords aren’t villains, they’re just ordinary people says new report

While the public’s image of a typical landlord might be a money-grabbing property professional, the reality is different. Office admin roles, alongside jobs in IT, teaching and accountancy are the four most common occupations for landlords, according to new research.   Continue reading Landlords can be loveable too!

Council backs renting reform campaign

“In the 21st century, we need a private rented sector that is modern, stable, flexible, predictable and fair for those individuals and families that call it home” – Graeme Brown, Shelter Scotland

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The City of Edinburgh Council has signed its support for a national campaign calling for fair rent for all.

Leader Councillor Andrew Burns and Deputy Leader Councillor Sandy Howat put their names to Shelter Scotland’s Make Renting Right campaign, which aims to make Scotland’s growing private rented sector fit for the 59,000 households in the capital that rent privately.

The campaign complements existing work between the Council and private landlords, which includes giving advice about what they must do by law, and how they can resolve problems with tenants. They are also legally required to register with the local authority by law and apply and comply with specific licences.

Councillor Burns said: “The Council has given its full backing to Making Rent Right because we are committed to housing people in high quality and affordable homes, which is a vital step in our battle against poverty.

“Renters are entitled to be treated fairly and while the majority of landlords do so, too many people are still experiencing the opposite. This campaign is a great step towards protecting them.”

Councillor Howat said: “We are delighted to support such an important and worthwhile campaign. Thousands of people rent in this city for many reasons, with many of them doing so by choice, and ensuring that they can do so safely and at a fair price is vital.

“The Capital Coalition is committed to providing affordable homes and will continue to work closely with our partners in order to do so.”

Graeme Brown, Director of Shelter Scotland, said: “We are pleased that the City of Edinburgh Council has joined our calls for a better private rented sector for tenants and landlords.

“Along with the council, we want to see a private rented sector that is fit for families and protects all tenants – a sector that provides long-term homes, not short-term housing.

“Too often we hear of people being moved on, evicted or rents increased unreasonably, forcing people into the disruptive cycle of having to move house – every six months in some cases – preventing them from ever being able to put down strong roots and being part of a community.

“In the 21st century, we need a private rented sector that is modern, stable, flexible, predictable and fair for those individuals and families that call it home.”

Pictured (L-R): Matt Lock, Hubs Manager for Shelter Scotland; Fiona King, Shelter’s Campaigns and Public Affairs Manager; Deputy Leader Councillor Sandy Howat; Leader Councillor Andrew Burns; Adam Lang, Shelter’s Head of Communications and Policy.