Title Conditions (Scotland) Act 2003 (Rural Housing Bodies) Amendment Order 2024: child rights and wellbeing impact assessment

Introduction

1. Brief Summary

Type of proposal: SSI

An organisation can become a Rural Housing Body (RHB) if they make an application to Scottish Ministers, and they meet the criteria. The criteria (section 43(6) of the Title Conditions (Scotland) Act 2003) is that the organisation’s aim is to provide housing or land for housing. Where an applicant meets the criteria, then an Order is drafted and presented to the Scottish Parliament.

The effect of becoming a RHB allows the body to place a rural housing burden (“burden”) which is a condition in the title deeds at the first sale of any property. The property will be sold at a discounted rate to make for affordable housing. The burden gives the RHB the first call to buy it back if the owner ever wishes to sell. If the RHB does buy the property back it may be at the discount percentage of the current market valuation and then be sold on at the same discount percentage. This ensures that the original discount made will endure in perpetuity – forever and provides the RHB the ability to control future sales.

Holiday and second homes market can drive the prices of properties up in rural communities making them beyond the reach of the local people, affecting communities and the individuals/families wishing to remain (or return) to their community. A RHB can assist local communities where there is a need for affordable housing. The aim of the policy is to make available houses or plots of land for self-build projects at an affordable price for a wide range of age groups and thereby maintaining the stock of affordable homes in rural Scotland.

Start date of proposal’s development: The two applications were received end of 2023 and early 2024.

Start date of CRWIA process: 08 August 2024

2. With reference given to the requirements of the UNCRC (Incorporation) (Scotland) Act 2024 which aspects of the proposal are relevant to children’s rights?

A rural housing body may make available property for affordable sale which may provide benefits to families. This could result in children being able to stay within their community and culture (Article 31 Leisure, play and culture of the UNCRC). It could enhance the standard of living to living in a property suitable for a family (Article 27 Adequate standard of living of the UNCRC). The reasons for purchasing the homes may be to allow the younger generation to stay in the community where parents and grandparents live. In addition, it may positively impact Article 2 non-discrimination) by allowing those in lower socio-economic brackets access to home ownership in these areas. While some potential positive impacts have been identified above, these are considered to be fairly remote. Accordingly, the overall impact of the Order on the rights and wellbeing of children and young people is considered to be neutral.

3. Please provide a summary of the evidence gathered which will be used to inform your decision-making and the content of the proposal.

The ability by a rural housing body to place a rural housing burden on any property or plot for sale allows control of the affordability to individuals and or families. The affordability may result in families benefiting and being able to stay within their own community or attract new families to the area and contribute to revitalise an ageing population. During the Business and Regulatory Impact Assessment (BRIA) interviews with local business there was evidence that the younger generation should benefit for this type of property. It is for the rural housing body to set a criteria on who would be open to buy such properties. But there is a probability that a couple or a family may wish to take advantage of applying to purchase a property.

4. Further to the evidence described at ‘3’ have you identified any 'gaps' in evidence which may prevent determination of impact? If yes, please provide an explanation of how they will be addressed.

No gaps have been identified.

5. Analysis of Evidence

The impact of a rural hosing body providing affordable housing to purchase may have a positive impact on the wellbeing of children and young people. The affordability may result in families benefiting and being able to stay within their own community and experience the culture from these areas. Attracting new families exposes children to the benefits and opportunities that can come from moving to rural areas. During the Business and Regulatory Impact (BRIA) interview with businesses it was highlighted that young people in the community may pick up Saturday jobs with the local businesses which can help them gain skills which will help them in their future careers. While some potential positive impacts have been identified, these are considered to be fairly remote.

6. What changes (if any) have been made to the proposal as a result of this assessment?

No changes have been made to the proposal.