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

Households in Social Housing

In 2019 it is estimated that 590,000 households and 1,170,000 people were resident in the social rented sector, either in local authority or housing association properties^[7].

Within the social rented sector some of the characteristics of social housing tenants highlight their vulnerability to the cost crisis. Tenants of social landlords are less likely to be in employment than those in households generally, with less than half of tenants being in employment.

In addition, an estimated 54% of social rented households have a highest income householder who is female. Households where women are the highest earner are overrepresented in the social rented sector, with these the households less likely to own or rent a private property than those where men are the highest earner. Scottish Household Survey findings for 2019 show that 60% of social rented sector households have a net household income of £20,000 or under.

When looking at children in relative poverty, 47% of children in social rented households are in poverty, compared to 10% of children in households buying with a mortgage and 18% of children in households who own outright^[8]. In addition, around two-thirds (66%) of social rented households are receiving some level of support for housing costs through Housing Benefit or Universal Credit^[9].

Available evidence finds social renters are more likely to have a limiting, long-term physical or mental health condition (45%) than those in the private rented sector (22%), those who own their homes outright (28%) and those who own their homes through a mortgage (14%).

Households in the Private Rented Sector (PRS)

In 2019 it was estimated that 340,000 households and 680,000 people were resident in the Private Rented Sector^[10].

There is more variation in experience and circumstances among those living in the private rented sector. Whilst the private rented sector is dominated by younger households, there are a mix of household types living in the sector, with over a third (37%) having a household income of £20,000 or less, over a fifth (22%) of households having children, almost a fifth (17%) of adults being in further or higher education, and 8% of adults being retired from work.

The experience of affordability within the private rented sector is also likely to be very different for tenants with lower incomes compared to the tenants with higher incomes. Over the latest period 2017-20, private rented sector households in the lowest income quintile were paying an average of almost half (47%) of their household income on housing costs, compared to only 17% for private rented sector households in the highest income quintile^[11].

Research by Joseph Rowntree Foundation (JRF)^[12] suggests that minority ethnic households are less likely to be managing well financially due to lower incomes and higher costs. JRF highlighted that minority ethnic households were over-represented within the PRS and are less likely to own their own home than white households.

In 2019^[13], Asian, Asian Scottish or Asian British made up 6% of adults in private rented households, 2% of adults in socially rented households and 2% of adults in owner occupied households. In the same year, African, Caribbean or Black Minority made up 4% of adults in socially rented households, 1% in private rented households, 1% in other tenures and 0% in owner occupied households. People from minority ethnic groups are, in general, more likely to be living in relative poverty after housing costs than people from the ‘White – British’ (including white Scottish) group. In 2015-20 the poverty rate was 41% for the ‘Asian or Asian British’ ethnic groups, and 43% for ‘Mixed, Black or Black British and Other’ ethnic groups, compared with 24% for ‘White - Other’ and 18% for ‘White – British.

Available evidence highlights close links to residency in PRS housing and other protected characteristics. For example, in relation to sexual orientation, 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%.

Student Households

A significant number of students in Scotland live in college and university halls or residence and in Purpose Built Student Accommodation (PBSA). The majority of those in such accommodation are women. Almost half of students in halls are from outside the UK and hence, those staying in college and university halls of residence and PBSA are potentially more likely to have a wider variety of ethnic backgrounds. There are also strong links between student households and the protected characteristic of Age, with the majority of students residing in college and university halls of residence and PBSA aged 21 and under. Recent research by the Mental Health Foundation Scotland and NUS Scotland highlighted the impact of financial concerns on student mental health.

Students renting college and university and PBSA accommodation did not receive the £400 energy cost support which was for households. Although they are eligible for support from other routes such as via hardship funds, these are already under significant pressure and should utility cost increases be passed onto students there may be insufficient financial resource to meet all individual needs. Moreover, as PBSA and halls of residence providers are businesses, students in this type of accommodation, unlike those in the PRS, will not benefit from the energy price cap announced for households by the UK Government. They will, instead, have to rely on providers using the UK Government's Energy Bill Relief Scheme, announced on 21 September 2022, which provides a discount on gas and electricity for non-domestic customers (including all UK businesses and charitable organisations) for 6 months until end March 2023. The level of support, however, for each organisation will vary depending on type and date of contract. Even with this action, electricity and gas prices will increase and there is no guarantee they will not be passed onto students.