New fund to prevent homelessness

Cash-first approach to keeping tenants in their homes

A partnership programme to help prevent people from becoming homeless has been launched by the Social Justice Secretary Shirley-Anne Somerville. This is in addition to the £4 million investment in homelessness prevention pilots in 2025-26 highlighted by the First Minister in the Programme for Government.

The £1 million Upstream Homelessness Prevention Fund will bring together Registered Social Landlords (RSLs), third sector organisations, community groups and other local partners to expand on existing successful approaches to preventing homelessness and explore innovative ways to sustain tenancies.

Partnerships funded by the programme will receive a cash fund for individual payments of up to £1,300 to help prevent people becoming homeless. The year long programme will also help to inform how RSLs will carry out the new Ask and Act prevention duties outlined in the Housing Bill currently progressing through Parliament.

The Scottish Federation of Housing Associations and Homeless Network Scotland will administer the Scottish Government funded scheme which is open for applications.

Ms Somerville said: “The aim of the fund is to break the cycle of repeat homelessness by providing targeted joined-up support for people struggling to pay their rent while also having to navigate housing, health and social care services.

“This early intervention approach will help to minimise evictions by upstream prevention activity and identifying opportunities to build up support systems where they are needed. This will help people to keep their tenancies and prevent them from becoming homeless.

“The scheme will also provide valuable feedback for the wider RSL network and provide examples of service design and delivery that can be replicated in other places and contexts.”

Scottish Federation of Housing Associations Chief Executive Sally Thomas said: “We are delighted to administer this important funding, which will complement the significant efforts housing associations make to help people remain in their homes. 

“This could include providing direct cash interventions to those facing financial difficulties, or forming local partnerships to make use of shared spaces and staff to create joined-up approaches to homelessness prevention.

“Beyond the funding, this programme will also provide vital insights on the support needed to help people at risk of homelessness and inform future approaches to partnership working to deliver the Ask and Act duty.”

Homeless Network Scotland Chief Executive Maggie Brunjes said: “Housing associations and third sector organisations are ideally positioned to prevent homelessness by delivering early, community-focused interventions.

“This Scottish Government funding will support local partnerships, enabling tailored solutions that tackle material hardship and leverage community resources to help people remain in their homes.”

Housing Bill amendments lodged to strengthen tenants’ rights

Amendments to the Housing (Scotland) Bill have been lodged by the Scottish Government setting out how rents will be capped in rent control areas.

The proposed measures will help protect tenants facing cost of living pressures and rising energy prices, whilst providing appropriate protection for the property rights of landlords and supporting investment.

Rent increases in control areas would be limited to the CPI annual rate of inflation plus 1%, up to a maximum increase of 6%. If approved, the rent cap will apply both to rent increases during the term of a tenancy, and in between tenancies, in areas where rent control is applied.

Ministers will determine which areas should be subject to rent control in order to protect tenants. The amendments build on a package of renters’ rights already in the Bill including the right to keep pets and to decorate rented properties without having those unreasonably refused.

Social Justice Secretary Shirley-Anne Somerville said: “Eradicating child poverty remains this government’s top priority and having a home can make a direct contribution to achieving this.

“Ensuring families can have secure and affordable homes that meet their needs is part of our approach to tackling the housing emergency. These measures will also help protect tenants against a backdrop of a continuing cost of living crisis and rising energy costs. We are doing what we can with the powers that we have as we know our policies are working to improve the lives of families in Scotland.

“Scotland already has some of the strongest rights in the UK for tenants, but we want to improve the renting experience even more to create an affordable, high-quality and fair rented sector.

“We have been working closely with tenants’ organisations to develop provisions in the Housing Bill to improve renters’ rights, including a system of long-term rent controls that is fair for tenants and encourages investment in the sector.

“Our rented sector is a crucial part of tackling the housing emergency and these measures provide important certainty for tenants.”

Council extends financial support for tenants struggling to pay rent

City councillors have announced plans to increase the Tenant Hardship Fund maximum average payment to around £480.

Launched in 2023, the Fund was created in response to the additional financial burden that tenants were facing from the cost-of-living crisis. It offers financial assistance to tenants struggling to make rent payments.

By 31 March 2024, the Council had received 2,741 applications to the Fund with 2,585 approved.

For 2024/25, the award has increased to a maximum of two fortnightly charges which will help tenants who need intervention to prevent court escalation and secure an affordable repayment plan.

Around 80% of Council tenants in Edinburgh receive assistance with their rent in the form of housing benefits or Universal Credit. The changes will also apply to new Universal Credit claimants, where deferred payments may create a rent pressure. 

The new two fortnightly payment is expected to support tenants during this period and protect them against an arrears spike.

Housing, Homelessness and Fair Work Convener Jane Meagher said:We don’t want tenants to fall into a situation where their debt becomes unmanageable, and we absolutely want to help people remain in their home. It’s so important that we continue to collect rent but that we do everything we can to support tenants in arrears.

“By extending the fund, we are providing a vital lifeline for those facing difficult times, allowing them to stay in their homes and avoid the devastating impact of eviction. I want tenants and residents’ groups to know that they can come to us if they’re worried about being able to pay their rent or have already missed payments.”

Tenants who are struggling to pay rent can speak to their housing officer or contact tenanthardshipfund@edinburgh.gov.uk.