WIDER POLICIES
Scottish Housing Policy

Key policies:

• Empty homes
• Lead tenancy schemes
• Rent guarantee schemes 

Housing policy is fully devolved to the Scottish Executive.

The amount of affordable rented housing in Scotland has declined sharply over the last fifteen years, although it remains more common than affordable rented housing in either England or Wales .  The Scottish Executive has announced its plans for investment in new affordable housing over the period to 2006.

A variety of schemes are in place to improve access to the private rented sector.

The supply of affordable housing

The amount of affordable rented housing in Scotland has been declining.  Over the last ten years, Scotland has seen a net loss of around 20,000 social rented homes each year -  a rate of around of 2½% per year.  As a result, the social rented sector reduced from 40% of the total stock in 1991 to 26% in 2004.

The reduction of stock is largely as a result of Right to Buy.  The level of new build has not replaced the loss - for each house built, around four are lost from the stock.

Research by the Scottish Council for the Single Homeless in 2004 estimated that an additional 12,000 affordable rented homes are required each year.  It warned that failure to invest would result in difficulties to deliver the 2003 Homelessness etc (Scotland) Act and cause homeless people to remain for longer periods in temporary accommodation.

The Affordable Housing Review carried out in 2004 on behalf of The Scottish Executive estimated that an extra 7,000 affordable homes were needed each year.   In the 2004 Spending Review, The Scottish Executive announced plans for the investment of £1.2bn in affordable housing over the next three years - the supply of 21,500 homes, of which 16,500 (6,500 per year) are to be affordable social rented homes.  The Scottish Executive also formed the 2012 planning subgroup to monitor the situation.  Some organisations in the homeless sector have considered this commitment to be inadequate with regards to the challenges which abolishing the priority need categories by 2012 will present^[1].

Each local authority has developed a local housing strategy.  Amongst other matters, these are meant to consider the implications of the planned introduction of a right to accommodation for all homeless people.  The main tool for this is the local housing needs assessment.  More specifically, local authorities are obliged to consider affordable accommodation for young people seeking accommodation for the first time.  Whilst all authorities have completed housing needs assessments, there is less evidence of strategic consideration of young people's needs.^[2]

Improving access to the private rented sector

Empty homes initiative

There are approximately 87,000 empty homes in Scotland (3.8% of stock in Scotland compared with an average of 3.4% across the UK).   Around half of these empty homes (48,000) are in the private sector, and around half of these (22,500) have been empty for more than six months.

The Empty Homes Initiative ran in Scotland between 1999 and 2003. The aim was to encourage owners of empty property to voluntarily lease them to the local authority or a Registered Social Landlord (RSL) to supplement social housing stock.  An evaluation report concluded that on a national scale the use of empty homes would represent a significant number of properties brought back into use more cost effectively than building new affordable rented stock.

Lead tenancy schemes

Since 1992, Registered Social Landlords have been funded via a grant system to enter into arrangements with private sector landlords to provide reasonable quality housing for rent.  The Homelessness Task Force recommended that such developments be actively pursued.

Rent guarantee schemes

Rent guarantee schemes are viewed as important for people of limited means to obtain access to the private rented sector.  They guarantee the deposit of a tenant and no money is actually handed over.  Following recommendations from the Homelessness Task Force, all local authorities had a duty to provide access to rent guarantee schemes by 2004.  This has been achieved by most local authorities, with some still in the process of developing their schemes.  A National Rent Deposit Officer was appointed by the Scottish Executive in July 2004 to facilitate the process.

Tenancy deposit schemes are a similar initiative.  This is where the deposit is handed over to an independent organisation, which keeps the money on behalf of the tenant and landlord.  The idea of such a scheme is to simplify the return of the deposit.  Although not strictly about improving access, it has wider implications as it could lead to increased confidence in the sector and improve the image of private rented housing, making it more attractive as an option for both tenants and landlords.  The Scottish Executive is currently considering a national scheme for Scotland in its private sector housing bill.

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End notes

[1] e.g. Shelter and the Scottish Council for the Single Homeless. Back to text

[2] Homelessness Monitoring Group Report, Helping Homeless People, 2005. Back to text

Page last modified on 06/07/2007 at 10:39