SEBG News Archive
Landlords must play key role in avoiding rural housing crisis
by Andrew Bruce Wooton, SEBG Deputy Chairman - 6th October 2005With the revelation that 47% of holiday homes are in rural areas, the debate surrounding affordable rural housing has been brought sharply into focus. This issue shows unequivocally the need for a practical and realistic solution to allow rural communities to house those who live and work there.
Housing is an issue in rural areas, whether it is for key service workers,. young professionals looking to take their first tentative steps on the property ladder and farmers and other rural folk. The need to preserve habitable, well-priced accomodation forthe locally employed, and so prevent the disappearance of skills and services means that a reasonable supply of homes is crucial. We don’t want our rural communities to be turned into winter ghost towns devoid of shops, halls and schools.
As more and more rural properties are sold as second homes and holiday cottages, the future can look bleak. Indeed, private sector let accomodation accounts for between 8 and 15% of the total housing in the Scottish countryside. Figures show that the number of second homes has been rising steadily, most significantly over the last four years. The Highlands alone has over 6,000 holiday homes, with Argyll and Bute not far behind on 5,000. With local residents finding it increasingly difficult to afford properties in areas sustaining low wages and low levels of development, and house prices rising steadily year on year, it is easy to see where talk of a crisis arises.
Clearly, the availability of rural housing to let is an issue of great sensitivity. The draft Housing Bill, currently passing through Holyrood will have a significant impact on housing in Scotland’s countryside. With far reaching implications for landlords across the board from repairs to management standards, the question which must be addressed is how this bill will impact upon the viability of private let properties. In conjunction with this, other areas of the law such as mandatory registration of landlords, the review of private water supply regulations and changes to the Housing Benefits payment system will all affect the way in which rural let housing is managed and the costs.
Consequentially, with inflated prices availableon the open market, and a higher income to be made on a “buy-to-let” basis renting to holiday makers, there is a distinct risk that properties will continue to fall out of the let sector where and when they are needed most. We could lose more of our farm cottages and housing needed to ensure the continuation of agricultural production, and the retention of a locally available skilled workforce. Higher levels of regulation and rules impacting upon landlords without the level of rental income or skilled labour to cope will mean a greater risk that landlordsopt for the easier, more lucrative property uses available through the new money coming into the counrtyside. Legislation implemented badly could make it harder to stop the rot from spreading, and the consequent loss of homes, skills, and community. But is the news for the private let sector all bad? Are there any positives that can be drawn from this?
Of course there are. This is, of course, a worst case scenario. And it is not the time to panic. There is much that can be done to ensure a future for the working countryside and the retention of affordable homes to let. Greater integration and communication between the private let sector, local authorities and local housing associations can make the most efficient use of all the resources and information available. Greater involvement for private landlords in the support schemes offered by Communities Scotland, particularly where good practice is rewarded by financial and management support, can extend the efficiencies offered by the private sector in small, rural communities. Legislation which identifies and deals with instances of bad practice – all this adds to the health and vigour of the rural let housing stock which is something we all want to see. Furthermore, scrutiny in our sector is not necessarily a bad thing. How we respond to it will reflect how we are perceived as landlords, and rightly so. Bridges are being built between local authorities and private landlords, with the development of voluntary accreditation schemes, and greater consultation. This is a very positive development. It leads to better understanding between all countryside groups, and ultimately better relations between neighbours.
In conclusion, rural private landlords catering for the market in affordable homes for let will face growing pressures in the future and our sector will rightly be judged on how we deal with it.. We are all wanting a countryside that emerges with renewed pride and purpose from the changes being imposed by changing markets and the rural let sector is no exception. All we ask for is recognition of the part we play and the opportunity to participate fully and integrate with the rural process, of which we are such a central part.
For further information contact:
Polly McPherson at SEBG on 07810891831
