Fit for purpose: a focus on Scotland's private rented sector

According to director of Shelter Scotland, Graeme Brown, Scotland needs a private rented sector which is modern, stable, flexible, predictable and fair for those individuals and families that call it home. Speaking at the launch of the housing charity’s national campaign, Making Renting Right, Brown said the benefits of reforming the private rented sector would not just be felt by tenants.  “Landlords too would see a more constant and predictable income with less downtime between rents and happier more stable relationships with their tenants,” he added.

Shelter Scotland’s campaign, which was launched at the end of October, aims to raise awareness and build public support for reforming the private tenancy regime which sees households forced to move constantly due to short-term rental agreements.

The charity said the shortage of affordable social housing in Scotland has driven more and more people into the private rented sector, which is now home to 312,000 families and individuals.  

Brown said: “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. Short-term tenancy agreements do not provide the stability and security individuals need and, in particular, the more than 80,000 families with children need in order to live a settled life.

“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.”

The campaign launch coincided with the Scottish Government’s consultation on proposals to reform tenancies in the private rented sector. Housing Minister Margaret Burgess said the plans are intended to give tenants a greater sense of security and provide appropriate safeguards for landlords, lenders and investors.

Through the proposals landlords must offer a minimum tenancy of six months and the notice to quit will be linked to how long the tenant has lived in the property. The Scottish Government said this consultation is part of its commitment to reform the private rented sector tenancy by enabling more effective regulation, applying tougher enforcement and attracting new investment.

We want to see a private rented sector that is fit for families and protects all tenants

The document will consult on proposals to modernise the reasons a landlord can use to get back possession of their property; enable tenants to stay in their home at the end of their lease unless one of the new reasons above occur; and introduce longer notice periods for landlords and tenants.
It will also explore issues relating to rent levels.

Burgess said: “If tenants have more security in their tenure, they may feel more confident in asserting their rights and flagging any concerns about their rented property without fear of eviction. In addition to this if tenants know they can only be asked to leave their home on certain specified grounds they will have a greater feeling of security.

“But equally a new tenancy system provides an opportunity to improve the private rented sector for landlords. We can tackle some of the longstanding issues they face, like problems around recovering the possession of their property and rent arrears. These changes could give landlords more reassurance in the system.

“Housing is a priority for this government, which is why we are consulting on these proposals to make sure our private rented sector is a strong as it can be. Our vision is for Scotland’s private rented sector to be an attractive and affordable housing option for anyone who wishes to live in it. Reforming the tenancy system is an important part of achieving this vision.”

Recent statistics show mixed trends in private sector rent levels across Scotland. Between 2010 and 2014, most average rents increased below the rate of inflation, with some falling. In particular, a total of 16 out of the 18 rental market areas across Scotland have seen below-inflation changes in average rents for two-bedroom properties, the most common size of property in the private rented sector.

Burgess said: “These statistics highlight wide variations in the rate of rent increases, with hotspots in the Lothian area and in Aberdeen, but modest rises, or even falls elsewhere. This is clearly good news for those tenants whose rents have risen at or below the rate of inflation, but a real problem for those affected by larger increases in the hotspot areas.”
She also said Scottish Government funding for the appointment of Gerry More as Homes for Scotland’s private rented sector champion will “drive forward initiatives to boost the supply of new homes purposely built for private rent and will unlock new sources of housing investment”.

Some areas of the country have seen higher increases over these years, including Aberdeen and Aberdeenshire where average rents for all property sizes have increased well above inflation. In Lothian increases for one, two and three-bedroom properties have been above inflation.

 Scottish Labour infrastructure spokesperson, James Kelly MSP, said: “The SNP cannot continue to ignore the need for rent reform. It has now become clear that we need to create a system that works for tenants.

“Too many families in Scotland are choosing between heating and eating. Too many families in Scotland are living from pay cheque to pay cheque, and too many families in Scotland are trapped in the private rented sector, unable to access social housing or get a foot on the property ladder.

“The SNP were wrong to side with the Tories and rogue landlords to block rent reform. They have a chance to do the right thing, work with Scottish Labour and deliver a system which will offer some protection and security to over 100,000 Scots who live in poverty in the private rental sector.”