Consultation on Affordable Rented Housing: Analysis of Consultation Responses

11 Proposal 10: Short SSTs To Let Intermediate Rented Housing

Proposal 10 - Allow social landlords to use Short SSTs to let intermediate rented housing.

11.1 The Scottish Government's housing strategy sees a growing role for intermediate rented housing in the coming decade. Currently, most of this is developed and managed by private-sector landlords who are subsidiaries or partner organisations of social landlords. Some social landlords have asked for more flexibility to develop and manage this themselves, rather than through a subsidiary or partner organisation. Committed to retaining secure tenancies, the Scottish Government are exploring whether social landlords could be given greater flexibility to let intermediate rented housing using a Short SST rather than a Scottish Secure Tenancy. Therefore, the Scottish Government has developed the following proposal:

THE SCOTTISH GOVERNMENT'S PROPOSALS – PROPOSAL 10
(Source: Consultation Document Page 29)

The Scottish Government invites views on:

• whether we should allow social landlords to let houses using Short SSTs for intermediate rented housing

11.2 An analysis of the responses provided to proposal 10 is set out below.

Views on the Proposal (Q45)

11.3 Nearly 40% of respondents who answered this question were in agreement with the proposal, with just 17% against the proposal. However a large proportion of respondents (44%) were unsure. These are reflected in the qualitative responses to the questions under this proposal which provided less content than some of the other proposals. In addition, these proposals were not discussed at the regional events.

Proposal 10 - Do you think the law should be changed to allow social landlords to grant Short SSTs for intermediate rented housing?
Respondent Source	Yes		No		Not sure
	Number	%	Number	%	Number	%
Written (n=185)	73	39	31	17	81	44
Facebook (n =5)	3	60	1	20	1	20
Total (n=190)	76	40	32	17	82	43

11.4 The table overleaf breaks down the 185 responses to this question via written questionnaires by respondent type. The responses to this question vary quite significantly across the different respondent groups who answered this question.

11.5 Just less than 50% of landlords and 75% of landlord representative groups were in favour of this proposal, whereas just 31% of individuals and about 31% of tenant groups and 41% of other groups were in favour of allowing social landlords to grant Short SSTs for intermediate rented housing.

Proposal 10 - Do you think the law should be changed to allow social landlords to grant Short SSTs for intermediate rented housing?
Respondent Source	Yes		No		Not sure
	Number	%	Number	%	Number	%
Individuals (n=26)	8	31	6	23	12	46
Landlord Representative Groups (n=4)	3	75	0	0	1	25
Landlords (n=74)	35	47	11	15	28	38
Other Groups (n=22)	9	41	5	23	8	36
Tenants Groups (n=59)	18	31	9	15	32	54
Total (n=185)	73	39	31	17	81	44

How to restrict the flexibility (Q46)

11.6 Consultees were asked how the flexibility could be restricted to only intermediate rented housing. Approximately 60% of respondents did not answer this question, 15% did not know and 3% felt that there were no ways to restrict flexibility.

11.7 Of those that responded, there were three core ways in which flexibility could be restricted. These are as follows, with the percentages referring to the proportion of the 237 written responses:

• Provide greater clarity on the definition of intermediate rented housing and the circumstances in which Short SSTs can be used (about 11% of respondents), for instance in terms of defining the parameters of intermediate rent, creating a different type of tenancy for intermediate rent and clarity on whether it is mid-market rented housing or higher rented social housing;
• This would need to be explicit within changes to legislation or provision of clear guidance (about 6%). In particular the Housing (Scotland) Act 2001 (schedule 6) would have to be amended to include intermediate rented housing as one of the grounds for granting a Short SST and permit a percentage of a landlords housing stock to be designated for intermediate rented housing;
• Through greater consultation with landlords / housing agencies (approximately 2%).

11.8 A small number of other respondents suggested other ways in which flexibility may be restricted to only intermediate rented housing including only applying the law to stock identified as intermediate rent only (by local authorities or RSLs); or through local allocation protocols which ensure that houses are primarily allocated to those on low incomes.

Views of social landlords on using the proposed flexibility (Q47)

11.9 Social landlords were asked whether they would use the proposed flexibility. Out of the 85 social landlords who responded to the consultation, 64 responded to this question as set out below.

Proposal 10 - If you are a social landlord would you use the proposed flexibility?
Respondent Source	Yes		No		Not sure
	Number	%	Number	%	Number	%
Written (n=64)	20	31	19	30	25	39

11.10 The responses were evenly split between those who would use the proposed flexibility (31%) and those who would not (30%). The largest proportion (39%) were unsure whether or not they would grant Short SSTs for intermediate rented housing.

Benefits (Q48)

11.11 Respondents were asked about what they saw as the benefits of the proposal. Approximately 60% of respondents did not provide an answer and 9% did not know. Of those that responded, the answers were broad-ranging although there were three main benefits suggested. These are as follows, with the percentages referring to the proportion of the 237 written responses:

• The proposals would provide a greater choice or broader range of housing choice across the sector and meet needs that otherwise would not be met (about 1% of respondents) particularly for younger couples or those on low incomes. This may lead to the delivery of more mixed communities;
• Social landlords would not have to establish a subsidiary to let intermediate housing (about 6% of respondents) which would result in time and cost savings;
• It would give greater flexibility and control to social landlords to develop and manage properties and allow tenancies to be tailored to meet different circumstances (about 6%).

11.12 Some respondents suggested other benefits to granting Short SSTs for intermediate rented housing. These included it being better than having an empty property; it being a better way of meeting the needs of local communities in social and economic terms; giving people a chance to prove they are responsible and highlighting the importance of good behaviour; and making intermediate rented schemes more viable/attractive.

Problems (Q49)

11.13 Respondents were asked about what they saw as the problems with the proposal. A large proportion of respondents (about 62%) did not provide an answer, about 8% did not know and 3% felt that there were no problems. Of those that responded, the answers were broad ranging. Three main problems were suggested. These are as follows, with the percentages referring to the proportion of the 237 written responses:

• The problems would blur the boundaries across different market tenures and would lead to less focus on social housing (about 8% of respondents);
• The proposals would result in a lack of security and not be conducive to the creation of sustainable communities (about 5% of respondents);
• The proposals would lead to discrimination against certain groups and result in a two tier system (about 4% of respondents).

11.14 A small number of respondents (approximately 11%) suggested other problems with the proposal to granting Short SSTs for intermediate rented housing. These included the mechanism through which council tax would be paid for such a short tenancy; the potential to 'abuse the system' by moving from one SST to another; confusion over the nature of tenancies and the rights of landlords and tenants; and the potential for conflict due to people paying different rents for similar products which highlights the need to keep the different housing products very distinct.

Actions to overcome problems (Q50)

11.15 Respondents were asked about the actions required to overcome the problems with allowing social landlords to grant Short SSTs for intermediate rented housing. About 72% of respondents did not provide an answer and 3% did not know. Of those that responded, answers were broad ranging. Only one theme was referenced by 4% of respondents as follows, with the percentages referring to the proportion of the 237 written responses:

• The better management of housing stock/tenants (about 4% of respondents). This includes communication with tenants, applying decisions fairly, well developed and targeted allocation policies to meet the needs of tenants and having policies that give tenants the rights to appeal decisions.

11.16 Other themes suggested include the increased resources to encourage the creation of social housing; basing the provision of mid market rentals on local housing strategy objectives; reviewing the charitable rules around low cost home ownership; and what constitutes helping people in need which would reduce RSLs' costs in operating a subsidiary.