It has been a tumultuous period for the housing industry with issues such as the impact of the pandemic, build cost increases, rent freezes, NPF4, land supply and affordability being only a few of those which housebuilders, contractors and RSL’s have had to contend with.
Homes for Scotland estimated that there is a shortage of 110,000 homes in Scotland which has accumulated since 2007 and that figure will likely continue to grow. With that backdrop, there remains the ongoing question of how to tackle this issue whilst ensuring balance for the public, the industry and its stakeholders.
The private rented sector is an example of current Government proposals appearing to strongly favour tenants over landlords. Whilst providing support for tenants is of course merited, some elements of current proposals on issues such as rent controls and evictions could result in landlords leaving the market due to the detrimental impact on their investments and of course a decrease in new investment. That in itself of course directly impacts the wider economy and impacts tenants. The current undersupply of social housing could address a deficit in the private rented market but with a significant cut in the budget and an already slowing rate of approvals for RSL units, a sustainable collective supply of private and social rented accommodation seems beyond ambitious.
So how should Government address this impending crisis? The key surely has to be balance.
It may seem obvious but a rounded long-term plan is needed which draws on expertise from all sectors and stakeholders is key not only to ensure that fundamental housing issues are addressed but also to ensure that housing has a positive impact on Scotland’s social and financial economy generally. Any solution must address all tenures, geographical locations and communities and have a positive impact in the wider financial economy to encourage continued investment across Scotland.
The housing sector is brimming with creative and imaginative people and ideas who are engaged in improvement for the sector. The industry has been actively discussing these issues for some time and continues to do so and to elevate that discussion we need proactive engagement from Government.
With the appointment of Paul McLennan MSP as the new Housing Minister, bringing experience from cross-party groups on construction, social enterprise and poverty, might we see more balance being brought to the discussion and more importantly the progress? Paul is not alone in addressing housing related issues within Government, there are arguably now 5 ministers and cabinet secretaries covering areas which impact housing, so could that help to achieve the desired balanced approach? Paul McLennan certainly gave the message that he was engaged and looking for the industry to engage with him on these issues when he appeared at Homes for Scotland’s Annual Awards Lunch last week. Let’s hope that with Government focus, ministerial support and industry engagement that the perfect balance can be achieved.
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