Making changes to let property: equality impact assessment

Key Findings - Tenants

The PRS is home to 341,000 households^[12]. Tenants are staying in properties longer. Data from the Scottish Household Survey^[13] indicates in 1999, 46% of households lived at their current address for less than one year, 25% for between 1 and 2 years, 11% between 3 and 4 years, 8% for between 5 and 10 years, 6% for 11 to 20 years and 5% for more than 20 years. This compares with 32% of households living in a let property for less than a year, 27% for between 1 and 2 years, 15% between 3 and 4 years, 18% for between 5 and 10 years, 7% for 11 to 20 years and 3% for more than 20 years in 2022.

There is no available data on current level of requests by tenants for changes to the let property and landlords responses. However, survey findings^[14] published in 2022 on private renters’ experiences has provided some insight on the proportion of renters who feel their landlord would be open to them personalising the property (e.g. putting up pictures, changing curtains, painting a room). This found 45% of respondents strongly agreed that their landlord would be open to them personalising the let property, 35% tend to agree and 13% tended to disagree and 7% strongly disagreed.

It also found that of the renters surveyed 44% strongly agreed they feel at home in the property, 40% tend to agree, 10% tend to disagree and 5% strongly disagree. However, the research notes that ‘home’ is a complex concept with different meanings to different people.

The survey also asked about what renters find important in the PRS. 62% of those who responded identified being able to make the property a home by being able to decorate and keep pets as important.

An evidence review^[15] on the role of private landlords in making a rented house a home published in 2022 highlights evidence that allowing personalisation of a rented home offers tenants more stability, security of tenure and increases the likelihood that tenants will look after the property. It also highlights that where personalisation is not allowed, tenants lack autonomy and control has a negative impact on a tenants ability to feel safe, secure and settled in their rented home. Evidence from RentBetter^[16] research suggests that tenant awareness of the Tribunal system is low and can be intimidating, particularly for low income tenants. Targeted awareness raising and support should therefore be considered in implementation of the measures to address these findings.

Changes that give private tenants additional rights to make changes to a let property will give greater control over making changes to their rented homes and have a positive impact for all.

Age

According to the Scottish Surveys Core Questions 2022^[17], 25.5% of those living in the PRS 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.

Scottish Government data on Poverty and Income Inequality in Scotland^[18] 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 the period 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%. Evidence^[19] suggests that younger tenants reported feeling discriminated against in engagement with their landlord. Being perceived as ‘children’ and ‘less responsible tenants’. This sense of a lack of control can negatively impact on younger tenants’ wellbeing. Evidence from a survey of tenants conducted as part of the RentBetter project^[20] 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.

Research into the priorities for low income tenants also highlighted some of the difficulties private renters often face in personalising their home by redecorating and/or upgrading the property – for example, in cases where landlords did not allow drilling holes in the wall and/or painting the property. Being able to personalise and redecorate the home was particularly important to families with children, so they could create child-themed bedrooms and/or manage children sharing bedrooms^[21].

A report^[22] by Independent Age about older renters in Scotland found that that 21% of older renters surveyed reported that they don’t know anything about their rights, with a further 36% saying they are unsure. This supports findings from earlier research^[23] as part of the RentBetter project which has shown a low awareness of tenancy rights more generally.

New rights to personalise a let property will benefit tenants of all ages, but may be particularly beneficial for tenants who live in the PRS for longer, and families with children helping to improve their renting experiences by giving them greater control to personalise their home.

Disability

According to the Scottish Surveys Core Questions 2022^[24], the proportion of adults in the PRS who have a limiting long-term physical or mental health condition was 23.2%.

There is insufficient information about the experiences of disabled tenants to fully assess the impact of greater rights to make changes to their rented home. However, the changes will be beneficial for all tenants.

Evidence from the survey of renters^[25] indicated that those respondents with a disability or longer-term illness were more slightly more likely to experience an issue with their landlord or letting agent (40% of respondents with a disability compared with 35% without). The same survey asked all renters who reported experiencing an issue about what steps had been taken to resolve it. The most common response (28%) was that they did not raise the issue for fear of what might happen. This, along with the general lack of awareness of tenancy rights indicated by RentBetter research^[26], make clear the importance of awareness raising of new rights and the mechanisms for resolving disputes as part of the implementation of the new rights.

To advance equality of opportunity, any guidance on the new rights or existing legislation should use more straightforward language, explanations, concepts and include images as well as text.

Sex (including pregnancy and maternity)

Experiences of renting can have a gendered dimension. According to the Scottish Core Questions 2022^[27], an estimated 50.2% of those in the PRS are women. Women earn less on average than men^[28], are less likely to be paid the Living Wage^[29] and are more likely to not be working due to looking after children or home^[30]. 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^[31].

Over recent years, evidence shows that households with children under one are at a heightened risk of poverty, and that families with a new child are more likely to enter poverty, even when controlling for other factors^[32]. Evidence from a recent focus report on poverty and households with babies^[33] suggests that new mothers found Universal Credit payments helped to relieve housing costs by covering their rent. However most of the interviewees were in social housing and it was suggested that private rented accommodation is unaffordable. Many within the study mentioned that having a baby prompted a change in housing; often moving out of pre-pregnancy housing to avoid overcrowding. While rental costs were not a prominent concern, mothers highlighted the challenges of securing homes which suit their family's needs.

There is insufficient information about the experiences of male and female tenants to fully assess the impact of greater rights to make changes to their rented home. However, the changes will be beneficial for all tenants.

Evidence from the CACHE survey of renters^[34] indicated that a higher proportion of female renters had experienced an issue with their landlord and letting agent^[35]. Of all respondents who had experienced an issue, 28% did not raise the issue for fear of what might happen. This, along with the general lack of awareness of tenancy rights indicated by RentBetter research^[36], makes clear the importance of awareness raising of new rights and the mechanisms for resolving disputes as part of the implementation of the new rights.

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.

A 2018 report by Stonewall^[37] reported one in four trans people (25%) were discriminated against when looking for a house or flat to rent or buy in the last year. The same proportion had also experienced homelessness at some point in their lives, while one in five non-binary people (20%) had experienced discrimination while looking for a new home.

Reported findings from a 2022 UK study of housing discrimination^[38] 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^[39], the Equality Network cited (yet unpublished) data from a survey undertaken by Scottish Trans which ran from March–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, housing insecurity, and in the case of trans respondents, the cost of living crisis causing respondents to have to make choices between necessities and gender affirming purchases. 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.

The consultation response also expressed that trans people may experience an additional layer of difficulty when seeking benefits via the Department of Work and Pensions due to administrative issues arising from either not having a GRC (gender recognition card), or due to issues caused by current and previous details such as names no longer matching on the system. According to the UK Government’s national LGBT Survey Report (2018)^[40], only 12% of the trans men and trans women respondents who had either started or finished transitioning had obtained a GRC.

There is insufficient information about the experiences of transgender tenants and landlords to fully understand the impact of greater rights to make changes to their rented home. However, the changes will be beneficial for all tenants.

Sexual Orientation

There is insufficient information about the experiences of tenants and landlords of different sexual orientations to fully assess the impact of greater rights to make changes to their rented home. However, the changes will be beneficial for all tenants.

The available evidence suggests that more cis lesbian, gay and bisexual people privately rent: people living in the PRS 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%^[41].

A 2021 report by the Scottish Government on inclusivity in rural areas^[42] 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.

Poverty and income inequality analysis data suggests the poverty rate has been consistently higher for LGBTI adults compared to straight/heterosexual adults. In the period 2020-2023 it is estimated that 25% of those identifying as LGB+ were in relative poverty after housing costs, compared to 19% of straight adults^[43]. However, it should be noted that the analysis flags that there were too few LGB+ identifying adults in poverty in the sample to produce a robust estimate of their population and measurement uncertainty is quite wide for this group.

Race

Recent data from the Scottish Surveys Core Questions 2022^[44] indicate that just over half (52.3%) of adult respondents in the PRS 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'^[45] and 15.6% recorded their ethnicity as Asian^[46], figures which are both higher than other tenures. All other ethnic groups make up 6.1% of the private rented sector^[47].

In the social rented sector, the Scottish Surveys Core Questions 2022^[48] indicate that the majority (79.6%) of adult respondents in the social rented sector recorded their ethnicity as ‘White: Scottish’, and 7.3% recorded their ethnicity as White: British, and 1.9% as White: Polish. 2.2 % recorded their ethnicity as White 'Other'^[49] and 3.2% recorded their ethnicity as Asian^[50]. All other ethnic groups make up 5.7% of the social rented sector^[51].

A Scottish Government analytical paper^[52] drawing together evidence about cost of living found that:

“[m]inority ethnic groups are significantly more likely to live in larger households^[53], to be unpaid carers and live in private rented accommodation. Minority ethnic households are also more likely to have deeper levels of poverty^[54] and so a greater proportion of their income is likely to be spent on essentials which are subject to inflation.”

As noted in a 2020 report of the Coalition for Racial Equality and Rights^[55], within Scotland, black and minority ethnic (“BME”) groups are demographically younger than white ethnic groups. According to the 2011 Census^[56], 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)^[57], there is a lack of evidence about how this applies to BME communities in Scotland.

A Scottish Government evidence review of the housing needs of minority ethnic groups^[58] sought to uncover trends in housing for minority ethnic groups. The review found that multiple trends in housing for minority ethnic groups were present across the literature including those identified above. People from minority ethnic groups were more likely to be living in relative poverty after housing costs than people from the white Scottish/British group which is still the case^[59], and some ethnic groups such as ‘African’, ‘White: Polish’ and the ‘Other ethnic’ group, were much more likely to be living in some of the most deprived areas in Scotland.

The review also notes that it remains a partial view and that gaps in the data exist, given that the available evidence on the demographic and geographic profile of the population is often dated or limited in terms of sample size, and that this restricts the insight offered by the available evidence.

Research undertaken as part of the RentBetter Project in 2020^[60] 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^[61]. 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.

The 2021 Scottish Government evidence review^[62] 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).”

A 2023 report by Netto et al on work carried out by researchers at the Urban Institute^[63] at Heriot Watt University in partnership with Shelter Scotland and Cemvo Scotland aimed to improve this gap in evidence^[64]. This was based on a systematic evidence review, an online survey with social landlords and interviews with a small sample of 30 minority ethnic (“ME”) and 10 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 report also found that the majority (95%) of ME interviewees found their current housing unaffordable. Affordability issues led to ME interviewees living in the PRS to seek social housing. However, the 2022 Scottish Household Survey^[65] reported similar rates of difficulties in paying the mortgage or rent when comparing households where the person with the highest income was either white or minority ethnic.

In terms of intersectional experiences, the Scottish Government’s Evidence review^[66] found that for ME women, isolation, language difficulties and experiences of racism, may increase their risk of experiencing homelessness or prevent them from escaping domestic abuse.

Evidence has also identified language barriers^[67] and lack of awareness of and confidence to act on rights^[68] as potential issues for ME groups. To advance equality of opportunity in the implementation of these measures any guidance on the new rights or existing legislation should use a range of appropriate, accessible and inclusive means and methods, including internet and social by maximising understanding of changes.

Religion or belief

There is insufficient information about the experiences of tenants and landlords of different religion or belief to fully assess the impact of greater rights to make changes to their rented home. However, the changes will be beneficial for all tenants.

According to the Scottish Surveys Core Questions 2022^[69], the most common religious designation across all housing tenures is ‘no religion’. People who live in the PRS and social rented sector are more likely to identify as being 'Muslim' or ‘other religion’^[70] compared to those who own their homes outright and those who own their homes with a mortgage.

In the period 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^[71].