By Carolyn Lochhead, Director of Public Affairs and Communications, Scottish Federation of Housing Associations
The UK is facing an escalating cost-of-living crisis, and it’s people on the lowest incomes, many of whom will be social housing tenants, who are experiencing the worst of it. The Scottish Federation of Housing Associations (SFHA) and our members want to help people who are struggling, but this support must help those in need and not threaten the very structures that exist to protect them.
On 6 October, the emergency Cost of Living (Protection of Tenants) (Scotland) Bill, which includes a rent freeze in the social and private housing sectors until 31 March 2023, with the possibility of extension, was passed by the Scottish Parliament. While the legislation doesn’t affect our members’ current rent period, it’s still having a destabilising effect – which probably comes as no surprise to readers working in social housing in England and Wales, where government rent control is already in place.
“These significant effects on both the quality and future provision of social housing are not balanced by any immediate, material benefit to most tenants”
With rental income vital for securing private lending for building new homes, there’s concern over reduced lender appetite, and we’re already seeing members halting development plans. We’ve also learned of housing associations that are diverting resources away from decarbonisation programmes to focus on maintaining their existing homes, while others have been forced to cancel plans for kitchen and bathroom upgrades for the next several years due to their projected loss in income. Some members have also told us they will be forced to cut back on non-statutory services, such as welfare rights advice, housing support and community-based programmes, which will not only make life harder for tenants but will also create greater pressure on already-stretched services such as Citizens Advice. These significant effects on both the quality and future provision of social housing aren’t balanced by any immediate, material benefit to most tenants, as between 60–70% are entitled to have their rents covered by welfare benefits.
SFHA and our members worked incredibly hard, as the bill passed through parliament, to highlight to the Scottish Government and opposition parties why a rent freeze in the social housing sector is unnecessary and, indeed, likely to be counterproductive. While we didn’t want to see even a temporary rent freeze introduced, we were glad to hear MSPs of all parties acknowledging the vital work of our members and calling for a more proportionate approach going forward.
SFHA will continue to make the case as to why this legislation must not continue after 31 March 2023. A rent freeze beyond this date would threaten our members’ ability to build, improve and maintain existing homes and deliver vital support services to tenants.
In the months ahead, we’ll work constructively with the Scottish Government, and other stakeholders, so that Scotland doesn’t see the damaging longer-term consequences of a rent freeze in the social sector. We’re keen to find solutions that work for tenants, social landlords and the government.
