The growing government Housing Benefit bill is due to a shortage of social rented housing and increased subsidies for expensive private sector rents, new research from the Scottish Federation of Housing Associations (SFHA) has revealed.

The SFHA has called on the UK Government to stop stigmatising tenants in the social housing sector, and for both the UK and Scottish Governments to work together to maximise investing in new affordable homes for rent – the most cost-effective way to the public purse of meeting the huge need for affordable housing.

Evidence extracted from official government figures by the federation reveal that there is overwhelming evidence that expensive private rents are the cause of the growing volume and value of housing benefit claims.
Specifically, our research reveals:

UK-wide, in the past ten years the cost of Housing Benefit spent on private tenants has increased 153%, compared to a 21% increase for council and housing association tenants.

By 2011-12, 40% of the entire spend on housing benefit in 2011/12 went to tenants of private landlords, despite the fact that two-thirds of the entire caseload is made up of social tenants. Housing Benefit costs an average 70% more per week when used in the private sector than in council or housing association homes.

In Scotland, the last five years have seen housing benefit expenditure increase by 76% for private tenants, compared to just a 10% increase for tenants renting from councils or housing associations.

SFHA Chief Executive Mary Taylor said:

“Our research reveals that not only are social housing tenants being blamed, erroneously, for causing a huge increase in the housing benefit bill, but it also reveals that investing in more new build affordable housing is the most financially attractive option for the government to help provide the affordable housing that people so badly need.

“For many households, wages alone cannot support housing costs and that there is a persistent need for affordable housing.

“The SFHA therefore, is calling on the UK government to stop stigmatising social housing, and for both UK and Scottish Government to direct as much funding as they can to providing new build homes for rent, which achieves far better value for the public purse than subsidising expensive private sector rents. We call on the Scottish Government to take note of these figures as it sets its spending priorities for 2013-14.”

Liberal Democrat councillor Iris Walker has welcomed the announcement that the Scottish Government has agreed to legislate to ensure that letting agents do not charge private tenants unlawful fees.

A recent campaign by Shelter Scotland uncovered numerous cases where tenants were being ripped off by being charged hundreds of pounds for credit checks and inventories which only cost the agents a few pounds to produce. Under the new legislation, charges other than refundable deposits and rent will be deemed illegal.

Iris Walker, Councillor for Westhill and District said: “Private tenants are already penalised in Aberdeenshire by having to pay higher rents due to the buoyant economy. Due to the Scottish Government slashing investment in affordable housing, more and more residents are looking to the private rental sector for accommodation. Any move to ease the financial burden on these families and individuals is most welcome.”

This is the last section of the Local Housing Strategy consultation and I have picked a strand of what Aberdeenshire Council plan for Tenant Participation.

Procedures need to be developed to ensure that the views of applicants and other service users are also reflected in the housing service provision. There were 6,882 waiting list applicants at 31st March 2012, some of whom will be existing tenants or part of an existing tenant household. Applicants outwith these categories have not traditionally been consulted about aspects of the housing service other than about their application. The introduction of a Common Housing Register (Apply4Homes) provides an opportunity to engage with and hear the views of all housing applicants seeking accommodation in Aberdeenshire.

I think this is an important step by Aberdeenshire Council to listen to the views and needs of future tenants. This can only help shape service delivery and housing provision going forward.

Aberdeenshire Council’s housing stock has reduced by 20% during the period 2002 to 2011 mainly due to Right to Buy sales with far more houses and larger properties being sold than flats and smaller properties. A small number of new build properties were completed during the same period.

There is an acute shortage of family sized housing (3 and 4 bedroom houses) and over the last few years the council has operated a downsizing grant scheme to encourage tenants who are under-occupying their houses to transfer to smaller properties in order to help meet the demand for larger houses.

The housing waiting list continues to increase and has almost doubled in the period from 2002 to 2011 when 7,084 applicants were on the list. Over the same period, homeless presentations have gone up from 1,107 to 1,722 whilst relet rates within Aberdeenshire Council stock has reduced from 1,583 to 1,019.

In recent years the percentage of allocations to homeless applicants has steadily increased in order to comply with the council’s statutory duties. Consequently, fewer properties were available for other housing applicants and tenants wishing to transfer.

As a landlord, the council has a major challenge in addressing anti-social behaviour. A substantial minority of complaints are difficult to completely resolve to the satisfaction of the complainant. In addition, there is an awareness issue as some tenants’ perception of the measures a council can take is unrealistic.

Some tenants’ expectations of a quick resolution to anti-social behaviour may be unrealistic. It is not always clear in disputes who is the ‘perpetrator’ and who is the ‘victim’. Disputes can involve protracted negotiation prior to reaching a settlement.

The Scottish Housing Quality Standard guidelines places a duty on social landlords to ensure that all properties satisfy a minimum level of quality (e.g. heating, insulation etc). Within mixed tenure blocks of flats, obtaining the agreement of other owners to carry out work and pay their share of the cost presents difficult challenges.

Social housing rented stock in Scotland is 595,000, of which Aberdeenshire’s share (council and RSLs) is 17,300 (2.9%). The percentage on housing benefit nationally is 65% (varying between 42% and 74%). In Aberdeenshire, the figure is 50%. For Aberdeenshire Council, 46% of rental income is met by housing benefit, which equates to £16,000,000. This is a vital source of income and clear challenges exist when Universal Credit comes into effect between 2013 and 2017. There will also be clear challenges to RSLs in Aberdeenshire where reliance in housing benefit ranges from 11% to 100%.

One of the key actions by Aberdeenshire Council to house minority and ethnic communities is:

Provide one well-maintained stopover site every two years that meets the needs of the Gypsy/Traveller Community and manage stopover and established sites effectively.

Unauthorised encampments:

Several locations are used by Gypsies/Travellers on a temporary basis, such as lay-bys. Many of the sites traditionally or previously used by Gypsies/Travellers are no longer available to them either due to the development of that site or barriers being put in place. This has resulted in Gypsies/Travellers using relatively few locations and for longer periods of time with quite often larger numbers of caravans present than in the past. The location chosen by Gypsies/Travellers is influenced by the type and extent of work available.

To date, no Gypsy/Traveller stopover sites have been developed in Scotland. The Scottish Government has yet to publish guidance ono the key elements necessary to design, develop and manage Gypsy/Traveller stopover sites.

The permanent site currently operated by Aberdeenshire Council in Banff is checked in February each year with any maintenance work carried out in March before the site opens for the summer season. Aberdeenshire Council is currently in discussions with Aberdeen City Council to develop and possibly expand the number of pitches currently run as stop-over pitches on Aberdeen City Council’s Clinterty Travelling Persons Site. Options are being explored in terms of providing a further stop-over site in North Aberdeenshire. This will also include the management of these stop-over pitches as well as those that may be developed in the future both at Clinterty and throughout Aberdeenshire including those sites detailed within the council’s Local Development Plan.

Changing demographics

Across Scotland, changing demographics are recognised with an increased healthier, ageing population projected. In addition it is suggested that there will be more people living alone with greater life expectancy. The number of people aged 75 and over is projected to increase by 82% between 2010 and 2035. The number of people pensionable age is to rise by 26%. In the same 25 year period, the number of people aged between 60 and 74 is projected to increase by 27%. In 2010, 23% of the population was aged 60 and over, by 2035 this figure is likely to increase by 30%.

In Scotland, the figures show an increase of 59% of people aged between 75 and 84 with dementia and a rise of 157% in people aged over 85 expected to have dementia. This presents a challenging picture which clearly demonstrates the need to change the way housing and support is delivered to ensure that peoples varying needs are met as they move into old age.

Key actions for Aberdeenshire Council for older people include:

Ensuring there is sufficient diversity in all new build housing, all sizes and tenures to meet the changing needs of Aberdeenshire residents, ensuring a minimum of 15% of new affordable homes developed meet identified need requirements per year.

Continuing to review ways to best maximise existing housing stock across all tenures, through the provision of equipment and adaptations in order to reduce the number of households with an unmet particular need by 2,310; 1,550 in the private sector and 760 in the public sector per year.

Identifying current and future housing support needs and harmonise housing support services across Aberdeenshire.

Critical disrepair is any disrepair to the critical elements of the dwelling. The critical elements are those whose condition is central to a dwelling being wind and weather proof, structurally stable and safeguarded against further rapid deterioration. Examples of critical elements are roof coverings, external doors/windows/walls and chimneys.

Based on figures from 2008-2010, in Aberdeenshire there are 39,000 (or 48%) of private sector houses with some form of critical disrepair.

20,000 (or 24%) of private sector houses have some form of urgent disrepair.

The main challenges in Aberdeenshire are:

Promoting greater responsibility amongst homeowners to carry out repairs and maintenance to their homes. Homeowners are generally not always aware of the condition of their property and do not always know the best way to carry out repairs.

Improving the energy efficiency of housing that is hard to treat or expensive to treat, especially in areas where there is no access to mains gas.

Promoting greater responsibility

The Scheme of Assistance is a major part of the Housing (Scotland) Act 2006 and is a policy designed to improve the condition of private sector housing. Aberdeenshire Council’s Scheme of Assistance is available whereby homeowners are helped to carry out repairs and maintenance to their homes. It aims to bring about a cultural change in the attitudes of homeowners, whereby they take more responsbility for the repairs and maintenance of their homes.

The Scheme of Assistance aims to help homeowners to become more proactive in investing in the condition of their houses. Achieving a more proactive approach across Aberdeenshire, as with the rest of Scotland, is a major challenge and it is recognised that the required levels of repairs and improvements cannot be achieved through financial assistance alone. What is required is a culture amongst homeowners that promotes greater responsibility when dealing with repairs and improvements to their homes.

Scottish Government policy is focused on improving the standards in the private rented sector. Various pieces of legislation have been introduced, including the Housing (Scotland) Act 2006 and the Private Rented Housing (Scotland) Act 2011 to raise these standards to ensure landlords and agents are operating the best management practises. Whilst it is recognised that the majority of landlords and agents operate high management standards, work will continue with private sector landlords to help improve the standards by offering training courses and providing information sessions to landlords and agents so they are aware of what their responsibilties are. It is recognised that the private rented sector plays an increasingly important role in the housing market and Aberdeenshire Council would like to see this sector thrive. In 2012/2013 a policy on the private rented sector in Aberdeenshire will be developed and implemented.

What would you like this policy to include?

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.