Private renting plays a key role in addressing housing requirements in Aberdeenshire. Renting often provides long term homes for households, particularly in remote areas.  According to the Scottish Housing Condition Survey 2008-2010, the private rented sector accounts for approximately 11% (11,000 properties) of all housing stock within Aberdeenshire.

As at December 2011, 19% of households in receipt of housing benefit in Aberdeenshire were within the private rented sector. This relatively small proportion, alongside tight housing market conditions, suggests that this sector could be aiming at households who are mobile and in better paid jobs, who do not want the additional responsibilities of home ownership. If housing need and demand remain high compared to supply, then landlords may further restrict access to households reliant on housing benefit rather than accept lower rents once the downward adjustments of the Local Housing Allowance take effect.

If the private rented sector are to play a greater role in providing affordable housing, particularly in rural areas, the Government will need to review current capital gains and inheritance tax regulations whereby 40% of the value of assets such as private rented housing stock would have be be paid. Conditional exemptions to these tax regulations would secure existing affordable housing within the private rented sector; encourage an increase in affordable housing provision by the private rented sector by encouraging lower rents to be charged from existing portfolios in return for the conditional exemption.

I would value your views on the above.