Housing (Scotland) Act 1988 - converting tenancies: equality impact assessment

Key Findings - Tenants

Latest data indicates that around 35% of households in Scotland currently rent the home they live in from private landlords. This equates to around 341,000 households in the private rented sector^[11].

There is little available data on the protected characteristics profile of tenants who are letting a property which is still subject to a tenancy under the 1988 Act. We have therefore considered the available evidence in relation to each of the protected characteristics to inform our assessment. We recognise that the data available does not provide a complete picture of the experiences of those with protected characteristics. However, the EQIA has allowed the opportunity to consider the impact of this measure for these groups as fully as possible.

Age

According to the 2022 Scottish Surveys Core Questions^[12], 25.5% of those living in the private rented sector are 16-24, 35.3% are 25-34, 15.5% are 35-44, 10% are 45-54, 6.8% are aged 55-64, and 6.9% are 65 and above.

Findings from the 2022 Scottish Surveys Core Questions show that those in private rented accommodation are more likely to be aged 16 to 34 years compared to other tenures^[13], and there is evidence from previous studies to suggest that in some cases this may be because residents in this age group are unable to afford to access other tenures of housing such as home ownership^[14].

Scottish Government data on Poverty and Income Inequality in Scotland shows that in the last 15 years, the youngest households (household heads aged 16-24) have been consistently more likely to be in relative poverty compared to older households. In 2020-23, 39% of people in households with household heads aged 16-24 were in relative poverty after housing. In comparison, the age groups 25-34, 35-44, 45-54 and 55-64 all had lower poverty rates between 17% and 23%^[15].

Evidence from a survey of tenants conducted as part of the RentBetter project found that those who reported having less confidence to raise a dispute with their landlord tended to be those with less financial power, including those on lower incomes and in part-time work, or younger, inexperienced renters^[16].

A survey by Age Scotland (1,117 responses, 114 respondents in the PRS) found the majority of older respondents renting within the private sector had a Private Residential Tenancy (30%). A fifth (20%) had a Short Assured Tenancy, and 19% had an Assured Tenancy. A quarter (24%) were unable to identify which type of tenancy they had, indicating a significant proportion of older tenants living in the private rented sector that may be unaware of the protections afforded to them under their tenancy agreement and therefore potentially vulnerable to poor treatment by their landlord of letting agent. Over half of the respondents (57%) were aware of their specific rental rights under their tenancy agreement but a third (32%) were not, and 11% did not know^[17].

Based on the information available, the impact in terms of the public sector equality duty in relation to converting 1988 Act tenancies is considered to be neutral with regards to people of different age, although we consider that this proposal should enable any remaining tenants with tenancies under the 1988 Act to benefit from the protections under the 2016 Act, along with the proposed protections in the Housing Bill, and reduce complexity and confusion in the sector.

There is a requirement on Scottish Ministers to consult further on this proposal before laying the regulations, and this will allow for a more detailed assessment of any potential impacts on landlords and/or tenants.

Disability

According to the 2022 Scottish Surveys Core Questions^[18], the proportion of adults in the private rented sector who have a limiting long-term physical or mental health condition was 23.2%.

There is insufficient information about the experiences of tenants and landlords with disabilities to fully assess the impact of converting 1988 Act tenancies. We consider that this proposal should enable any remaining tenants with tenancies under the 1988 Act to benefit from the protections under the 2016 Act, along with the proposed protections in the Housing Bill, and reduce complexity and confusion in the sector.

There is a requirement on Scottish Ministers to consult further on this proposal before laying the regulations, and this will allow for a more detailed assessment of any potential impacts on landlords and/or tenants.

Sex (including pregnancy and maternity)

According to the 2022 Scottish Core Questions^[19], an estimated 50.2% of those in the PRS are women. Women earn less on average than men^[20], are less likely to be paid the Living Wage^[21] and are more likely to not be working due to looking after children or home^[22]. This may lead to women having a lower independent income. Whilst there may be income pooling within a couple with a high-income and low-income earner, there will be an unequal reliance on the sharing of income to maintain their standard of living^[23].The Wealth in Scotland^[24] report also shows that women are less likely to own property than men^[25], and lone parents (of whom 92% in Scotland are women) and working aged women with no children are the least likely groups to own any property.

There is insufficient information about the experiences of tenants and landlords of different sexes to fully assess the impact of converting 1988 Act tenancies. However, based on the information available, the impact in terms of the public sector equality duty in relation to sex (including pregnancy and maternity) is considered to be neutral. However, we consider that converting 1988 Act tenancies should enable any remaining tenants with tenancies under the 1988 Act to benefit from the protections under the 2016 Act, along with the proposed protections in the Housing Bill, and reduce complexity and confusion in the sector.

There is a requirement on Scottish Ministers to consult further on this proposal before laying the regulations, and this will allow for a more detailed assessment of any potential impacts on landlords and/or tenants.

Gender reassignment

Data around the prevalence and experiences of trans people in the Scottish private rental sector are limited. We do not have reliable estimates for the number of trans or non-binary people in Scotland at present, including those living specifically within the PRS, however as the next section will detail, there is evidence that other members of the LGBTI community are more likely to live in the PRS and within urban areas in Scotland.

Reported findings from a 2022 UK study of housing discrimination^[26] by Generation Rent and LGBTI homelessness organisation akt found that 43% of LGBTI respondents reported that they had been forced to live in unsuitable accommodation, compared with 29% of non-LGBTI participants. Insecurity and accessibility to affordable homes in the private rental market was raised as also an issue. However, limited information about the study or its underlying data were available so it is unclear as to how robust or representative these findings are.

In a published response to the recent consultation on A Human Rights Bill for Scotland^[27], the Equality Network cited (yet unpublished) data from a survey undertaken by Scottish Trans which ran from March 2023 – June 2023 and surveyed 575 trans and non-binary people from across Scotland about their experiences of housing and the cost-of-living, among other topics. The findings report experiences of discrimination by private landlords and housing insecurity. Detail of survey results and methodology were not yet available for assessment at the time of drafting so it is not possible to comment on the robustness of these findings.

Based on the information available, the impact in terms of the public sector equality duty in relation to gender reassignment is considered to be neutral. We consider that converting 1988 Act tenancies should enable any remaining tenants with tenancies under the 1988 Act to benefit from the protections under the 2016 Act, along with the proposed protections in the Housing Bill, and reduce complexity and confusion in the sector. Whilst there is insufficient information about the experiences of tenants and landlords in relation to gender reassignment to fully assess the impact of converting 1988 Act tenancies, we consider that this measure does not introduce changes that directly or indirectly discriminate against those with protected characteristics.There is a requirement on Scottish Ministers to consult further on this proposal before laying the regulations, and this will allow for a more detailed assessment of any potential impacts on landlords and/or tenants.

Sexual orientation

There is insufficient information about the experiences of tenants and landlords of different sexual orientations to fully assess the impact of rent controls.

The available evidence suggests that more cis lesbian, gay and bisexual people privately rent: people living in the private rented sector are more likely to identify as either 'lesbian, gay, bisexual or other' (LGB) than the population as a whole: 6.9% compared to 2.9%^[28].

A 2021 report by the Scottish Government on inclusivity in rural areas^[29] which drew on multiple data sources found that there is a higher prevalence of lesbian, gay, bisexual or 'other' people in urban areas, which may partially reflect experiences of LGBTI people of having moved to a different area due to their experiences as LGBTI.

Based on the information available, the impact in terms of the public sector equality duty in relation to sexual orientation is considered to be neutral. However, we consider that converting 1988 Act tenancies should enable any remaining tenants with tenancies under the 1988 Act to benefit from the protections under the 2016 Act, along with the proposed protections in the Housing Bill, and reduce complexity and confusion in the sector.

There is a requirement on Scottish Ministers to consult further on this proposal before laying the regulations, and this will allow for a more detailed assessment of any potential impacts on landlords and/or tenants.

Race

Recent data from the 2022 Scottish Surveys Core Questions^[30] indicate that just over half (52.3%) of adult respondents in the private rented sector recorded their ethnicity as 'White: Scottish', lower than all other tenures, and 16.5% recorded their ethnicity as White: British, and 2.5% as White: Polish. 6.8% recorded their ethnicity as White 'Other'^[31] and 15.6% recorded their ethnicity as Asian^[32], figures which are both higher than other tenures. All other ethnic groups make up 6.1% of the private rented sector ^[33]

As noted in a 2020 report of the Coalition for Racial Equality and Rights^[34], within Scotland, BME groups are demographically younger than white ethnic groups. According to the 2011 Census, those identifying as white are most likely to be aged 45-59, whereas as BME groups are largely younger in profile (most likely to be aged 25-34) – with the exception of Caribbean or Black where it is 35-44. However, although there is evidence to suggest that younger people in Scotland may find themselves in the PRS due to a lack of other options (often referred to as the 'generation rent' phenomena^[35], there is a lack of evidence about how this applies to BME communities in Scotland.

Research undertaken as part of the RentBetter Project in 2020^[36] found that, of the non-white minority ethnic PRS tenants in Scotland sampled, just over a third found it difficult to find a place to rent, compared to one fifth of all tenants in the sample. For non-white minority ethnic tenants, this difficulty in finding a place to rent was more commonly attributed to affordability or being on benefits than for other tenants^[37]. This research also found that found that tenants from non-white minority ethnic groups were still less likely to feel confident in challenging their landlord and dealing with disputes compared to their white counterparts.

A 2021 Scottish Government evidence review^[38] noted that some families may choose to live in the PRS due to fear of discrimination or lack of culturally appropriate accommodation within the social sector, however:

"[s]ome studies presented a more complex view of over-representation in the PRS, where minority ethnic families chose to rent privately for the greater flexibility and choice it offered compared to other tenures, suggesting a more positive image of the sector (Netto & Abazie 2012; Strachan & Donoghue 2009). For some participants, the sector was seen as an attractive alternative to the social rented sector in terms of greater choice of properties and more attractive neighbourhoods for families (Netto & Abazie 2012), allowing them to live nearer to places of worship and other amenities such as halal shops and cultural centres (Netto et al. 2011)^[39]."

A 2023 report by Netto et al on work carried out by researchers at the Urban Institute at Heriot Watt University in partnership with Shelter Scotland and Cemvo Scotland aimed to improve this gap in evidence^[40]. This was based on a systematic evidence review, an online survey with social landlords and interviews with a small sample of thirty ME and ten white Scottish participants on low and middle incomes from urban and rural locations with a range of ages, household compositions, tenure and employment statuses.

Findings from this report included indications that, compared to white Scottish interviewees, a different set of drivers motivated ME interviewees to seek new housing, including changes to or difficulty in securing employment, fear of and experience of racial harassment including intergenerational impacts, poor housing conditions and lack of space.

The Scottish Government's Evidence review^[41] identified language barriers and awareness of rights as particular issues for minority ethnic groups. To advance equality of opportunity in the implementation of these measures care will be taken in producing guidance on new rights or existing legislation, and consideration will be given to using a range of appropriate, accessible and inclusive means and methods, including internet and social media in order to maximise understanding of changes.

Based on the information available, the impact in terms of the public sector equality duty in relation to race is considered to be neutral. However, we consider that converting 1988 Act tenancies should enable any remaining tenants with tenancies under the 1988 Act to benefit from the protections under the 2016 Act, along with the proposed protections in the Housing Bill, and reduce complexity and confusion in the sector.

There is a requirement on Scottish Ministers to consult further on this proposal before laying the regulations, and this will allow for a more detailed assessment of any potential impacts on landlords and/or tenants.

Religion or belief

According to the 2022 Scottish Surveys Core Questions^[42], the most common religious designation across all housing tenures is 'no religion'. People who live in the private rented sector and social rented sector are more likely to identify as being 'Muslim' or 'other religion'^[43] compared to those who own their homes outright and those who own their homes with a mortgage.

In 2018-2023, Muslim adults and adults identifying as 'other religion' were more likely to be in relative poverty (61% and 31% respectively) than adults overall (19%) and adults belonging to the Church of Scotland (16%), after housing costs were taken into account.^[44]

Based on the information available, the impact in terms of the public sector equality duty in relation to religion or belief is considered to be neutral.

However, we consider that converting 1988 Act tenancies should enable any remaining tenants with tenancies under the 1988 Act to benefit from the protections under the 2016 Act, along with the proposed protections in the Housing Bill, and reduce complexity and confusion in the sector.

There is a requirement on Scottish Ministers to consult further on this proposal before laying the regulations, and this will allow for a more detailed assessment of any potential impacts on landlords and/or tenants.