Meeting of the Parliament 13 November 2024
When the Housing (Scotland) Bill was introduced, I was a member of the Local Government, Housing and Planning Committee. We took evidence on parts 1 to 4 of the bill, with only the section on rent controls creating much discussion.
It is important to understand the current housing situation across Scotland and all the key factors that are impacting on the Edinburgh housing situation, especially in relation to the 5,000 families who are currently homeless.
In 2022-23, the total supply of new housing reached the highest annual level since the financial crash of 2008-09. There are now 624,000 social homes in Scotland, which, at 23 per cent of all homes, is the highest proportion in the UK. A National Records of Scotland report that was published in June highlights that, across Scotland, there are 2.7 million homes and 2.5 million households. To be clear, that means that 186,000 homes are lying empty. Since 2007, the Scottish Government has supported the building of 133,000 affordable and social homes. Across all tenures and sectors, 293,000 homes have been built, which is a 12 per cent increase compared with a population increase of only 7 per cent.
I will set out the key factors that are impacting on the Edinburgh emergency housing situation, despite 33,500 homes being built in the city across all sectors since 2007. The capital’s population has increased by 15 per cent since 2007, while short-term let businesses have removed more than 8,000 properties to serve the ever-growing tourist market. The previous Tory Government policies pushed up construction inflation and reduced workforces through Brexit, forcing house building to construct less for more. The cost of living crisis pushed more families out of home ownership due to high mortgage rates, adding to the 7,000 private homes lying empty in the city. In the past year, there has been a 14 per cent increase in the rents for two-bedroom properties in the private rented sector, taking monthly payments to £1,000, compared with £400 for social rent. The situation is also not helped by the previous Conservative Government’s freezing of local housing allowance rates for a number of years, and they look likely to be frozen again by Labour next year.
The number of students is yet another factor, and that number has increased in recent years. Students now make up 20 per cent of the Edinburgh population, and there are now 50 per cent more students than school pupils in the city. Although there has been some building of purpose-built student accommodation in the city, it is only enough to guarantee a student’s first-year accommodation place, in most cases. After that, they join the general population looking for a home.
To tackle those increasing demands on the social rented sector, the City of Edinburgh Council has a stock of 20,000 homes, with a further 20,000 homes in the housing association sector. However, the council, which is a Labour-Conservative administration, has 1,200 empty council homes. The average time that a void council home is not available for rent in Edinburgh is 555 days, and the associated loss of rent is estimated at £1.7 million over a nine-month period.
Edinburgh is a challenging case in relation to housing, due to the many moving factors that impact on the availability of homes.
In addition to record house building, the Scottish Government has put in place policies that address some of the issues that I have raised, including funding the Scottish Empty Homes Partnership, the second home double council tax charge, short-term letting licences and rent control areas.
We need to get the balance right in the bill between protecting tenants in private lets and encouraging developers to build homes in the private rented sector.