Housing, Poverty and Regulation in Scotland Alliances to Fight Poverty Seminar, Marseille 3 October 2014

Housing, Poverty & Regulation in Scotland Social Housing, Welfare and the Regulation – initial reflections The nature and scope of social housing in Scotland Housing and Poverty in Scotland Regulation as a means of tackling market failure – the ‘Scottish’ approach Address housing need – the role of the market and the state in Scotland

Housing, the Market & Regulation  Long history of debate over access to affordable, adequate housing being central to Scottish debates about social justice  Debates have centred around key issues of the right to adequate housing, the need for the state to address market failure, and the desire for regulation to improve access and quality  Our concern is with those with some kind of housing need that is not being met  Can a different regime of regulation allow these needs to be met and make housing a more effective tool for social justice?

Glasgow Rent Strikes, 1915

Gorbals, Glasgow, late 1940s

Gorbals, Glasgow, 1970s

Right to Buy, 1980s onwards

Housing Stock Transfer, 2000s

The Nature and Scope of Social Housing  Historically the share of social housing has been greater than other parts of the UK  However, social housing has declined significantly in the lat 20 years. Owner occupation rates have increased significantly since the 1970s.  Important implications for the kinds of regulation needed in the housing market in Scotland

Housing and Poverty in Scotland  There is a changing profile of poverty and social housing in Scotland  Previously 60% of people in poverty lived in social housing, now around 40%. Proportion of people in poverty living in private rented accommodation has increased from 10% to 25% over the last 10 years.  Affordability: social rents are cheaper than in other parts of the UK – this helps to keep Scotland’s poverty rate lower.  Private rented rates are significantly higher than social: average private rent is 86% higher than social rent  Important implications in relation to poverty and welfare: Housing Benefit cases have increased in PRS by 62% from

Scottish Approach to Regulation  A wide variety of factors impact on regulation – the current housing market, the welfare system, local and regional factors – can make it difficult to identify a clear approach to intervention and regulation  Key element in the Scottish approach has been the Homelessness Scotland Act Set an ambitious target of ending homelessness by Alongside other legislation, this allowed local authorities to do more to address homelessness.  Homelessness has fallen in Scotland – from a peak of 15K per quarter to less than 10K. Rough sleeping has been significantly reduced, but some cases remain

Scottish Approach to Regulation  Scotland has, to some extent, developed different approach to addressing affordability and access – for example allowing more generous grants for housing associations to develop new housing, restricting and ultimately end the ‘right to buy’  Also, greater use of planning rules to increase the the availability of affordable housing, and grants to Local Authorities to build more houses  Regulation has also prompted the improvement in existing and new housing stock to address fuel poverty – more than 600,000 homes classed as fuel poor

Scottish Approach to Regulation  Stronger in principle support for social housing, but still some mirroring of efforts to encourage ownership – Help to Buy  Despite support, new builds from private sector dominate: 10,686 compared to 2,911 social rented and 974 local authority  Significant areas have not been covered by Scotland’s approach to regulation – the private rented sector has been relatively immune to regulation both in relation to quality and cost

Conclusions: the role of the market and the state  Post war period has shown the necessity and effectiveness of intervention in the housing market  Regulation is the most effective way to ensure access to housing, improve quality and control costs  Opening up of the housing market from the 1980s has not led to increased security or access to housing, but has meant that many either cannot access housing or only at a very high cost

Contacts Peter Kelly, Director,