Rent control: equality impact assessment results

Key Findings – Tenants

Households in the rented sectors have a higher proportion of people who are in relative poverty^[8], as well as children in relative poverty^[9]. Private renters are also more likely to be financially vulnerable and have less resilience to cope with financial shocks^[10]. In addition, households in the private rented sector, especially those on lower incomes, in general pay more of their income on housing costs than owner occupiers^[11]. Over the 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 26% for households who owned their home with a mortgage and 5% for those who owned their home outright, also living in the lowest income quintile in Scotland.^[12]

Recent YouGov polling from the Public Insight Monitor (March 2024)^[13] shows that when asked how they and their household were managing financially, a combined 36% of all renters said that they were either not managing very well, having some financial difficulties or were in deep financial trouble. The corresponding figures for those who owned with a mortgage and owned outright were a combined 20% and 11%. Those in the PRS were also more likely to express concern over paying rent/mortgage^[14] in the next 2-3 months compared to all tenures as a whole (27% for private renters compared to 12% all tenures in March 2024).

A 2022 study by the UK Collaborative Centre for Housing Evidence for the Joseph Rowntree Foundation (JRF) and the Scottish Government^[15] explored what lower income tenants in Scotland’s PRS want to see from a new rented sector. This study also provided insights into the experience of private renters in Scotland and found that many private renters, particularly those on lower incomes, are renting not through choice, but because they feel it is their only option. In fact, 44% of tenants in the survey reported they were renting privately because it was their only option, and this figure rose to 54% for those respondents on lower incomes.

Age

Young Adults

Those renting in the PRS tend to be younger than those in other tenures. PRS households are likely to contain a highest income householder who is between 16 and 34 years old than in social renting or home ownership^[16]. Evidence suggests that in some cases this may be because residents in this age group may be unable to afford or access other tenures such as home ownership^[17].

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 the period 2020-23, 39% of people in households with household heads aged 16-24 were in relative poverty after housing costs. In comparison, the age groups 25-34, 35-44, 45-54 and 55-64 all had lower poverty rates between 17% and 23%[18].

According to the UK-wide National Student Accommodation Strategy 2023, 46% of students rent from a private landlord which means that almost half of the student population relies on the PRS sector for accommodation^[19].

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^[20].

Given the mechanism for challenging unauthorised rental increases requires the tenant to initiate, this may disadvantage some groups who are less confident in challenging landlords, and there may be opportunities during the next phase of design to work with stakeholder groups to further consider how best to support tenants who need to take this step.

Children

We know that households with children are at higher risk of experiencing poverty.^[21] Households living in poverty will have less disposable income and more likely to spend a higher proportion of their monthly budget on housing costs. Indeed, results from a bespoke survey of PRS renters’ experiences in Scotland from 2022 suggest that higher proportions of renters living in a household with children may worry about being able to afford rent, may find it difficult to afford their current rent, and may report that they regularly cut spending on household essentials in order to pay their rent, in comparison to households without children^[22].

Older People

According to 2022 data from the Scottish Surveys Core Questions^[23], 13.7% of those in the PRS are aged 55+. A recent report by Independent Age^[24] included a YouGov Survey aimed at understanding the experiences of older private renters in Scotland. They found that, of their respondents, a third (34%) have felt anxious about paying their rent, and 61% reported experiencing a rent increase in the last year.

Based on the information available, the impact in terms of the public sector equality duty in relation to the introduction of a framework to allow rent control areas to be created is considered to be neutral in regards to people of different age. However, whilst rent control will support tenants of all types with private residential tenancies in areas where rents are controlled, it may be of particular benefit to groups on lower incomes such as families with children; the youngest households (household heads aged 16-24); and older adults accessing housing in the PRS in those areas.

Disability

According to the 2022 Scottish Surveys Core Questions^[25], the proportion of adults in the PRS who have a limiting long-term physical or mental health condition was 23.2%.

According to evidence compiled from multiple sources for a 2022 Scottish Government analytical paper on the cost of living^[26]:

“[h]ouseholds with one or more disabled people are more likely to be in poverty. 23% of people in households with a disabled household member were in relative poverty after housing costs in 2017-20, compared to 17% of people with no disabled household members. The percentage of net income spent on housing, fuel and food is higher for households with a disabled household head Food insecurity is also more common among adults with a limiting longstanding illness (18%). Disabled people often use more energy, as many need to keep heating on for medical reasons, or use electricity to charge essential equipment such as mobility aids. Many disabled people have needs which mean that economising on energy can bring severe hardship.”

Results from a study of PRS renters’ experiences published in 2022 suggested that a higher proportion of respondents with a disability or long-term health condition reported finding it more difficult to afford their current rent, and higher proportions were worried about being able to afford their rent and/or other essentials than those without a disability or long-term health condition^[27].

Based on the information available, the impact in terms of the public sector equality duty in relation to the introduction of a framework to allow rent control areas to be created is considered to be neutral in regards to disabled tenants. However, whilst rent control will support tenants of all types with private residential tenancies in areas where rents are controlled, it may be of particular benefit to those with disabilities or long-term health conditions accessing housing in the PRS in those areas, given affordability concerns.

Sex (including pregnancy and maternity)

Experiences of renting can have a gendered dimension. According to the 2022 Scottish Core Questions^[28], an estimated 50.2% of those in the PRS are women. Women earn less on average than men^[29], are less likely to be paid the Living Wage^[30] and are more likely to not be working due to looking after children or home^[31]. 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^[32]. The Wealth in Scotland^[33] report also shows that women are less likely to own property than men^[34], 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.

The previously mentioned 2022 CaCHE/JRF^[35] survey of 1,012 private renters in Scotland found that a higher proportion of women reported worry about affording other essentials in comparison to male renters^[36].

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.^[37]

Experiences of poverty and gender can be intrinsically linked.^[38] Evidence^[39] shows us that there are some types of households with children who are at a higher risk of being in poverty. These include households more likely to be headed by women (such as single parent households, and those with a child under one (for which the mother tends to do the vast majority of the caring), or households where the mother is aged under 25^[40]).

Maternity/Pregnancy

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^[41]. Evidence from a recent focus report on poverty and households with babies^[42] 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.

Based on the information available, the impact in terms of the public sector equality duty in relation to rent control is considered to be neutral in relation to sex (including pregnancy and maternity). However, whilst rent control will support tenants of all types with private residential tenancies in areas where rents are controlled, it may be of particular benefit to women accessing housing in the PRS in those areas given affordability concerns.

Gender reassignment

A 2018 report by Stonewall 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.

Data around the prevalence and experiences of trans people in the Scottish PRS 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^[43] 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 also raised as 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^[44], 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, 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 for Work and Pensions (DWP) due to administrative issues arising from either not having a gender recognition certificate (GRC), 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)^[45], only 12% of the trans men and trans women respondents who had either started or finished transitioning had obtained a GRC.

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. However, whilst rent control will support tenants of all types with private residential tenancies in areas where rents are controlled, it may be of particular benefit to transgender tenants or those who face barriers related to affordability accessing housing in the PRS in those areas where affordability is a barrier.

Sexual orientation

There is insufficient information about the experiences of tenants 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 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%^[46].

A 2021 report by the Scottish Government on inclusivity in rural areas^[47] 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.^[48] 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.

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, whilst rent control will support tenants of all types with private residential tenancies in areas where rents are controlled, it may be of particular benefit to tenants of different sexual orientation, given affordability concerns. This is particularly true if rent controls are demonstrated to be proportionate and necessary in areas where LGBTI community members are more prevalent such as urban centres.

Race

Recent data from the 2022 Scottish Surveys Core Questions^[49] 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'^[50] and 15.6% recorded their ethnicity as Asian^[51], figures which are both higher than other tenures. All other ethnic groups^[52] make up 6.1% of the PRS.

A 2022 Scottish Government analytical paper^[53] drawing together evidence about cost of living found that:

“[m]inority ethnic groups are significantly more likely to live in larger households^[54], to be unpaid carers and live in private rented accommodation. Minority ethnic households are also more likely to have deeper levels of poverty^[55] 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^[56], within Scotland, BME groups are demographically younger than white ethnic groups. The report notes that, according to the 2011 Census, those identifying as white are most likely to be aged 45-59, whereas BME groups tend to be 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), the report reflects that 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^[57] 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^[58], 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^[59] found that, of the small number of 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^[60]. 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 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)^[61].”

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^[62]. 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 report also found that the majority (95%) of ME interviewees found their current housing unaffordable. Affordability issues led to ME interviewees living in Scotland to seek social housing. However, the 2022 Scottish Household Survey^[63] 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^[64] found that for minority ethnic 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 ^[65] and lack of awareness of and confidence to act on rights^[66] 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 to using a range of appropriate, accessible and inclusive means and methods, including internet and social media in order to maximise understanding of changes.

Given the mechanism for challenging unauthorised rental increases requires the tenant to initiate, this may disadvantage some groups who are less confident in challenging landlords such as those from minority ethnic households, and there may be opportunities during the next phase of design to work with stakeholder groups to further consider how best to support tenants who need to take this step.

Religion or belief

According to the 2022 Scottish Surveys Core Questions, 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’^[67] 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.^[68]

Whilst rent control will support tenants of all types with private residential tenancies in areas where rents are controlled, it may particularly help tenants (including those with differing religion and beliefs) access housing in the PRS in those areas.