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

4. Assessment

Our assessment doesn’t identify any unique impacts on island communities.

Whilst we appreciate that any potential decrease in PRS supply could have a proportionately greater impact in those island communities where supply is low, this would also be true of a number of communities in mainland Scotland, and we therefore do not consider that island communities specifically would be disproportionately affected by any potential negative outcomes to these measures. This is also true of any decrease in investment in the condition or energy efficiency of properties which may result from the impact of the rent capon landlord incomes.

Furthermore, we intend to put in place appropriate safeguards to protect landlords which will also reduce the likelihood of them leaving the sector as a result of the emergency measures. Given the need to put measures in place quickly, necessitating emergency legislation, it is also intended that a three-monthly reporting requirement will be included in the legislation, to demonstrate the need for provisions to either continue or expire, where appropriate and based on evidence at the time.

We will also continue our work to increase affordable housing supply in island communities. Over the last parliament we delivered 6,000 affordable homes in remote, rural and island communities, and we have a target of delivering 110k affordable homes in Scotland by 2032, with at least 10% of these in remote, rural and island communities.

We did not identify any potential barriers or wider impacts, although there will be a need across the whole of Scotland to ensure landlords and tenants aware of the new measures in order for them to be effective, and we are aware that not every island has reliable internet access for easy access to information about the new measures.

We consider that this can be mitigated by a broad campaign of awareness-raising which includes other forms of media beyond online information. Rural and island households are considered as a specific audience and a key focus for the communications plan around cost crisis measures, which will include a campaign on Renters Rights, as they are one of the groups which are likely to be disproportionately affected by increases in the cost of living.

Whilst some of the communications work will have an online focus, there are also plans to raise awareness by other routes, to ensure that communities and individuals in island communities – and those on mainland Scotland – who have limited internet access will still have information on their rights.

Is a full Island Communities Impact Assessment required?

There is insufficient evidence to indicate that these temporary emergency measures will put an island community at a disadvantage and, as set out above, residents in island communities may already be suffering disproportionately from effects of the cost crisis, and may therefore be in particular need of the emergency measures.

The Scottish Government’s view is that the proposed rent cap is a necessary measure to stabilise housing costs, and to support people to stay in their homes at a time of substantial pressure on household budgets which is likely to disproportionately affect those in the rented sector.

We consider that the temporary moratorium on evictions will prevent negative impacts on the health and wellbeing of tenants who are facing eviction and potential homelessness at a time when they may be already struggling as a result of extraordinary financial stress for many. As well as relieving pressures on housing and homelessness services in the short term, during the peak in the cost crisis, and when housing and homelessness services are already under acute pressure. A delay in the enforcement of evictions proceedings will also provide tenants with more time to find suitable alternative accommodation.

The eviction moratorium may also ensure that landlords do not wrongly evict using one of the existing grounds for eviction but intending instead to increase rents, and the increase in potential penalties for unlawful eviction should also serve to protect tenants from evictions which do not follow the correct processes put in place to protect tenants.

We anticipate that these outcomes will be similar across Scotland and, if anything, will support existing community cohesion in island communities and reduce pressure on housing services by supporting more tenants to stay in their homes – both those living in island communities, and those living away from home such as students in PBSA in island communities or on mainland Scotland.

Whilst there is the potential for adverse effects such as a reduction in supply or in investment in property quality and energy efficiency measures, we do not consider that this is likely, as the proposed rent cap is temporary in nature and should therefore be limited in impact. As set out above, the temporary measures proposed include safeguards for landlords, to mitigate against potential negative impacts on supply in the sector.

We therefore consider that any negative outcomes are likely to be limited in nature and to be similar across Scotland and that this, coupled with the steps we are taking to mitigate adverse effects, means that there are unlikely to be differing impacts for island communities.

More generally, and as set out in the Programme for Government, we intend to publish our Remote, Rural and Island Housing Action Plan to support the provision of homes in these areas, including consideration of funding arrangements for community housing trusts to ensure they can support the delivery of our enhanced rural home building plan.

A full Islands Community Impact Assessment is Not required

In preparing the ICIA, I have formed an opinion that our policy, strategy or service is Not likely to have an effect on an island community which is significantly different from its effect on other communities (including other island communities). The reason for this is detailed below.

Reason for not completing a full Islands Communities Impact Assessment:

Based on the data available, we consider that there are unlikely to be differing impacts for island communities as a result of the temporary emergency measures, and we consider that the emergency housing measures are likely to affect landlords and tenants equally both in island communities and in communities on the Scottish mainland.

It is intended that stabilising housing costs and supporting people to stay in their homes in the rented sector will help to mitigate some of the effects of the cost crisis both in island communities and in communities on mainland Scotland.

Screening ICIA completed by (name)

Position

Signature and date

ICIA authorised by (we recommend DD level)

Catriona MacKean

Position

Deputy Director Better Homes

Signature and date

27 September 2022