Scotland’s property rental market is under intense scrutiny. Many tenants are struggling to access affordable and well-maintained tenancies, the Scottish Parliament declared a housing emergency earlier this year, and a hotly debated Housing Bill is currently progressing through Parliament.[1] Tenants on low incomes or with vulnerabilities are particularly feeling the pinch, with tenants on low incomes often being driven into the Private Rented Sector due a shortage of available social housing.
In a report published by Consumer Scotland, we looked at the evidence around issues private and social tenants face in relation to affordable housing, housing standards and conditions, and exercising tenancy rights.[2] Our study highlights a number of key findings and evidence gaps. In this blog we focus on the impacts of renting privately for tenants with low incomes or vulnerabilities and on what they might do when things go wrong in a tenancy.
Value for money?
Research has found that over half of low-income private tenants in Scotland report feeling that they had no other option but to rent privately.[3] However, the costs associated with private lets - including high rents and deposit requirements – are generally higher than social housing, and can make it difficult for tenants on a low income to access or sustain an affordable home in the Private Rented Sector. The impact of rent increases is felt by many, but most acutely by those on low incomes or in vulnerable circumstances, posing serious risks to housing security.
However, despite the generally higher rents, satisfaction levels in the Private Rented Sector are lower overall due to reported unsatisfactory housing conditions - and even more so amongst tenants on lower incomes.[4] Differences in regulatory standards between the Social and Private Rented Sectors may contribute to this difference in tenant experiences.
Seeking a resolution
Evidence suggests a gap between the level of issues Private Rented Sector tenants experience and the use of formal pathways available to them to resolve such issues. These pathways include the Housing and Property Chamber of the First-Tier Tribunal.
Many tenants don’t experience issues, and many of those who do are able to resolve them directly with landlords or letting agents. However, evidence suggests that tenants who are on low incomes remain reluctant to seek resolutions, fearing potential eviction or further complications.[5] Tenants also often believe that their issue is not serious enough to endure the hassle of dealing with any resolution process and that with a lack of affordable rental homes, staying and putting up with it may be easier than finding somewhere else to live.
Advice agencies provide vital assistance to those who do seek support, including guidance through the Tribunal process and information on potential remedies. Yet even with advice, many tenants still don’t use the existing resolution pathways available. Many cite concerns over the time, effort, and potential risks as barriers to resolving issues and the question is: what can be done to assist tenants who wish to do so, to formally pursue resolutions?
What next?
Our report finds that the current housing crisis has left low-income and vulnerable tenants particularly exposed. Many have been driven into the Private Rented Sector, where they face higher costs, are more likely to experience issues, and have less security of tenure. With fewer options and with more financial constraints, these tenants are less likely to seek help when problems arise.
Following this study we are now conducting more research on the experience of private tenants on low incomes faced with tenancy issues. We aim to identify improvements which can break down barriers to pursuing a solution. We are not only listening to them, but also drawing on the expertise of those who advise them. Following this research we will publish our conclusions and recommendations to help more tenants resolve their issues, and will continue to work with others to identify and advocate for potential improvements for tenants across Scotland.
Endnotes
[1] Response to Housing (Scotland) Bill: Call for Views | Consumer Scotland
[2] This included the Nationwide Foundation’s recently published RentBetter study, works by the UK Collaborative Centre for Housing Evidence, and a variety of other sources.
[3] Living in Scotland’s private rented sector: a bespoke survey of renter’s experiences - UK Collaborative Centre For Housing Evidence
[4] RentBetter Wave 2 Full Reports | RentBetter (indigohousegroup.com)