The private rented sector must play an even greater role in meeting Scotland’s housing need the Communities and Sport Minister Stewart Maxwell has said.
Speaking at Shelter's housing conference in Edinburgh today, Maxwell set out the Scottish Government's wish to see an even greater involvement from the sector in light of the credit crunch.
He also outlined for the first time the main objectives of the current government review of private rented housing, which, as well as ensuring that the sector is capable of delivering the right types of housing in the right places, it will also examine a range of options for increasing supply of rented housing for low income and homeless households.
The review will also promote partnership working between local authorities and private landlords and assess current trends alongside the views, experiences and aspirations of both landlords and tenants through large scale surveys. It will also consider international comparisons particularly where governments can pool together and use a raft of policy, fiscal and other tax incentives which can stimulate activity in the market.
The review will support the ongoing consultation on regulations to give local authorities greater flexibility to discharge homelessness duties in the private sector.
Maxwell said: “In Firm Foundations we set out our aim to see a modern, vibrant private rented sector, able to meet housing need through the provision of good quality and well managed accommodation.
“Since then we have seen a downturn in global financial markets and the credit crunch lead to turbulence in the housing market.
“While we are confident Scotland's economy is well placed to address the challenges presented by the current economic climate, this Government will not just sit back and wait for conditions to improve.
“Last week the First Minister set out our vision for the housing market in this changing economic climate. In this context, our ambitions for the private rented sector to play a greater role in meeting housing need have become even more sharply focussed.
“It is worth reflecting on the achievements of the last year, including the effort that Councils have put in to successfully delivering landlord registration, the launch of the National Landlord Accreditation Scheme, and the introduction of the Repairing Standard.
“The Scottish Government believes that this sector can make a greater contribution to accommodate those in need of housing.
“This will only happen where there is a genuine spirit of partnership between national and local government and landlords, and a commitment from the sector to continue to drive up standards in letting practice. I certainly believe this is achievable.”
Responding to the speech, Shelter Scotland say a new longer lease for renters should be considered as part of a wider review of the private sector in Scotland - and could help house people as the effects of the credit crunch continue.
Graeme Brown, the director of Shelter Scotland, made the call for better security for people living in the private sector, in his first public appearance as director of the charity.
Brown said: “For too long, tenants have had short term contracts that have short changed them on settling down and knowing they have a secure place to stay.
“The current system of six-month tenancies is 20 years old. We believe it should be looked at afresh - as part of a wider review of the sector - to see what appetite there is to increase tenancy lengths.
“We recognise that the short assured tenancy has a place for some people but we're keen to look at something like the Republic of Ireland model, which allows for a six month settling in period, followed by the greater security of a fixed-term three and a half year lease.”
“This would be particularly useful at a time when housing is in short supply. With people finding it increasingly difficult to get a mortgage, invariably private renting will be seen as an option that may have to serve them in the longer term.”
He added: “Scotland has an internationally acclaimed homelessness target to give everyone the right to a home by 2012. Housing people who are homeless in the private sector can help towards meeting that target. But we believe, along with other homelessness organisations, that a two to three year tenancy is a better option. We will continue to push for this as part of our Hometime Scotland campaign (5), which is aimed at ensuring we deliver on the 2012 target.”
The current Government consultation focuses around changing secondary legislation to allow local authorities to discharge their duty to homeless households by ensuring provision of a short assured tenancy. The consultation is currently available on the Scottish Government's website, and the closing date for the consultation is 19 September.
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