Committee
Local Government, Housing and Planning Committee 05 December 2023
05 Dec 2023 · S6 · Local Government, Housing and Planning Committee
Item of business
Scottish Housing Regulator: “Annual Report and Accounts 2022-23”
Michael Cameron
Watch on SPTV
Yes. Specifically on retrofit to tackle energy efficiency and net zero, George is right that the financial projections show a reduction in planned investment by landlords in existing homes. Also, the vast majority of plans did not necessarily include the future cost of meeting energy efficiency requirements and net zero, largely because of the on-going review of energy efficiency in social housing. The proposal was published last week for the social housing net zero standard. When the consultation has concluded, landlords will have greater certainty about the expectations and the standards that they will have to meet. We expect to see landlords starting to plan the costs of delivering those standards, and we will see that coming through in the financial projections. We anticipate that the cost of retrofitting will be substantial. The other uncertainty—you will hear this from landlords, if you speak to them—is the level of public subsidy that might be made available to help them to invest in their homes to meet the new standards. At the moment, there is a degree of uncertainty about that. We anticipate a substantial investment requirement. The exact impact on rent levels for tenants will be, in a large part, determined by the answer to the question about public subsidy.
In the same item of business
The Convener
Green
We turn to agenda item 3, under which we will take evidence on the Scottish Housing Regulator’s “Annual Report and Accounts 2022-23” from George Walker, who ...
George Walker (Scottish Housing Regulator)
Thank you very much, convener. I might take a minute or so more on my opening statement this time than I have done previously, because so much has gone on si...
The Convener
Green
Thank you very much for that very thorough introduction and for getting into some of the detail about homelessness. Thank you, too, for highlighting your awa...
George Walker
I am happy to take that. I will start, and Michael Cameron might want to add something. It is a very sensible question. There is no doubt in our minds that ...
The Convener
Green
It is very helpful to hear that that is your approach. You spoke extensively about the thematic review of homelessness, and you covered part of the question...
George Walker
Michael, do you want to take that?
Michael Cameron (Scottish Housing Regulator)
Yes, I am happy to pick that up. As you said, in February, we published our thematic report on homelessness services in Scotland, in which we flagged the ve...
The Convener
Green
Is the issue the same across all 14 of the councils concerned, or is it nuanced? Is it really just about a lack of housing stock? 10:30
Michael Cameron
We looked across six different aspects of performance and statistics for each of the councils. For example, we looked at breaches of the unsuitable accommoda...
The Convener
Green
I will bring in Pam Gosal for a supplementary question.
Pam Gosal
Con
Thank you, convener. Good morning, panel. I have two supplementary questions. You mentioned 14 councils. Three councils have declared a housing emergency so ...
Michael Cameron
We set out very clearly that we consider that there has been systemic failure in provision of services to homeless people. Language such as “housing emergenc...
Pam Gosal
Con
Thank you for that response, but councils are going through really challenging times. I have, over the past couple of weeks, had the opportunity to speak to ...
Michael Cameron
Our role is to regulate individual landlords, including local authorities. That said, we engage with the Scottish Government on the wider systemic situation....
Pam Gosal
Con
Thank you.
Willie Coffey
SNP
Good morning to you both. I will follow up on Pam Gosal’s point. After this item with you guys, we will discuss a paper that tells us that, in Scotland, ther...
Michael Cameron
Many of those empty houses are, obviously, not in the social rented sector, so there is an imperative to understand where those homes are and how quickly and...
Willie Coffey
SNP
Do you track the important figures, such as the number of long-term empties in the social rented sector that are being allocated to people who are temporaril...
Michael Cameron
We monitor landlords’ performance in letting and management of empty homes, and we produce annual statistics on that. We are in conversation with the Scottis...
Willie Coffey
SNP
That is really helpful, Michael. Thank you very much for that. George, in your remarks and in response to questions, you made really positive comments about...
George Walker
I have some information to give you. I probably do not have specific numbers to hand, but I can provide you with more data. What I am about to say is maybe m...
Willie Coffey
SNP
Again, that is really helpful. The only other thing that occurs to me to ask is this: if the median rent rise is below inflation, will that have any impact o...
George Walker
Michael Cameron might have something to say specifically on retrofit. I do not, at the front of my mind, but I touched on the idea of reinvesting in existing...
Michael Cameron
Yes. Specifically on retrofit to tackle energy efficiency and net zero, George is right that the financial projections show a reduction in planned investment...
Willie Coffey
SNP
Thank you, Michael. George Walker anticipated my last question and almost answered it. You obviously have second sight and know what I am going to ask. The ...
George Walker
We hear a mixed economy, if you like, of answers on that. There is a flow through from two things. First is the availability of the services and providers fo...
Willie Coffey
SNP
George Walker mentioned a figure for loss of income due to lost rent. Was it £38 million or around that?
George Walker
It was £38.7 million, I think, just to be clear.
Willie Coffey
SNP
Can landlords attempt to recoup that?
George Walker
That is the cost of lost rental while properties sit empty, which they do for an average period of 56 days now, as I said.