Cost of Living (Tenant Protection) (Scotland) Bill: equalities impact assessment

Consideration of the protected characteristics and financial security of household in rented accommodation

This section sets out a summary of what we know about protected characteristics and financial insecurity of tenants by tenure type in Scotland.

Given the significant impact of the cost of living crisis on all households in Scotland, particularly those on the lowest incomes, this overall position is considered first and the following information on specific tenure types should be taken in this context. Data and evidence in many instances is drawn from surveys, in particular the 2019 Scottish Household Survey which predates both the Covid pandemic and the cost of living crisis – both of which have exacerbated existing inequalities.

We do not have parallel data on the profile and characteristics of landlords in Scotland. The Scottish Government does not have access to the data or registration held on the Landlord Register. The purpose of the Landlord Registration database is to assess the fit and proper status of a landlord in terms of letting of private properties, the data is not used by the Scottish Government for profiling of the private rented sector landlords. In the absence of time to consult fully, we therefore cannot assess the equality impacts on landlords in Scotland.

The effects of the Cost Crisis

Tenants as individuals, and landlords as individuals and businesses are likely to be affected by the current economic environment.

However, evidence suggests that the group of people most likely to be worst affected by increases in the cost of living in the immediate term (e.g. over the next year) are low income households, with little or no savings. Within the broad grouping of low income households there are a number of groups of people who are likely to incur additional costs and / or receive real terms reduced income because of their particular characteristics and / or circumstances, and are therefore likely to be disproportionately affected by increases in the cost of living:

• People from ethnic minority backgrounds
• Unemployed adults
• Women
• Single parents
• Unpaid carers
• Children living in poverty
• People with disabilities
• Older people
• Children and young people

Households in the rented sectors have a higher proportion of people who are in relative poverty^[1], as well as children in relative poverty^[2]. They are also more likely to be financially vulnerable^[3].

In addition, households in the rented sectors, especially those on lower incomes, in general pay more of their income on housing costs than owner occupiers, have higher rates of poverty (including child poverty) and have less resilience to cope with financial shocks. Measures to support tenants in the rented sector are therefore likely to help those tenants most affected by increases in the cost of living.

Recent results from the Scottish Housing Regulator National Panel of Social Housing Tenants and Service Users indicate that cost of living pressures have been increasing:

• A quarter of panel members who responded to the 2021/22 survey said that they are not currently managing well financially and 6 in 10 saying their financial circumstances are worse than before the pandemic. Many linked these difficulties to increased cost of living and rent increases and more than 7 in 10 were concerned about future affordability of their rent.
• More than half of respondents reported experienced difficulty heating their home, with more than double the number from the previous year stating energy costs as the main factor contributing to these difficulties^[4].

Households in the rented sector

Available data suggests a strong correlation between particular protected characteristics and households who do not own their own property, either outright or through a mortgage^[5] with the following household types likely to rent: households where household heads were widowed, cohabiting, single and never married, or divorced (including separated and Civil Partnership dissolved); disabled household members; a minority ethnic household head; a female household head and; households with younger household heads^[6]. The Wealth in Scotland report also shows that 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.

The intersection of these household characteristics is not considered in detail in this impact assessment. However, it is considered that households with more than one of these characteristics are less likely to own their own home and therefore more likely to rent their property.

Whilst a precise gender breakdown isn’t available for other household types on Housing Benefit or for households receiving the housing element of Universal Credit, the available data suggests that it is likely that women in Scotland are overall more likely to be in receipt of Housing Benefit or the housing element of Universal Credit than men.

People who live in the private rented sector and social rented sector are more likely to identify as being 'Muslim' or ‘other religion’ compared to those who own their homes outright and those who own their homes with a mortgage. In 2015-20, Muslim adults and adults identifying as ‘other religion’ were more likely to be in relative poverty (52% and 21% respectively) than adults overall (18%) and adults belonging to the Church of Scotland (15%), after housing costs were taken into account.