On 13 January the Scottish Government introduced its new Housing Bill following its consultation exercise last year. This article comments on Bill highlights, which will be the subject of much debate, both in Parliament and the housing sector, over the coming months.
Right to Buy (RTB)
A key area of discussion to date has been changes to the RTB. The Bill proposes:
- No RTB for “new supply social housing” which is any property only let by a social landlord from and after 25 June 2008 (the original date the Government announced this policy). So recently built, or acquired, properties qualify as “new supply” and will not have the RTB. However, if a tenancy is already in place for a “new supply” property before the Bill becomes law it will have the RTB and only when a new tenant takes over that property will the RTB cease.
- No RTB for people who are new tenants, i.e. people who become tenants for the first time or those who return as tenants after a voluntary break.
- “Pressured area” status reformed: local authorities will be entitled to designate “pressured areas”, suspending modernised RTB, without Ministerial consent. They will have to consult RTB landlords, tenant organisations and residents before making any designation. A designation may apply not only to areas but also to particular house types, and may be for up to 10 years, rather than the current 5 year maximum, expanding the way in which designations may operate.
Already commentators, such as Shelter Scotland, while welcoming the proposals, are lobbying for further restrictions on the RTB. It is worth noting that while RTB restrictions are to be introduced they will be qualified with protections for existing tenants and existing rights so, at most, any restriction will come into operation gradually. It is certain that RTB will attract considerable further debate during the Bill’s passage through Parliament.
Regulation of RSLs
The Bill proposes various alterations to the current regulatory regime, including:
- Scottish Housing Regulator is to change from an executive agency of the Government to a statutory body operating independently of Ministers.
- Registration criteria for Registered Social Landlords (RSLs) will no longer restrict RSLs to specific constitutional forms but they must still be “not-for-profit”.
- Part 1 of Schedule 7 of the 2001 Act, regarding the control of payments and benefits, will be among those matters repealed. Instead, the Regulator is to issue, following consultation, a code of conduct and related guidance, setting out standards of financial management and governance for RSLs.
- A new “Scottish Social Housing Charter” will set out standards and objectives (“outcomes”) for all social landlords (RSLs and local authorities). E.g. recent Government consultation on Freedom of Information (FOI) concluded that the FOI Act would not be extended to all RSLs at this time but that the Bill would be used to increase RSLs’ transparency through the Charter.
Private companies as RSLs
The earlier Bill consultation identified a high value placed by stakeholders on RSLs being not-for-profit, so interestingly, and in direct contrast to the position in England, the Bill does not propose to allow profit-distributing bodies to become RSLs. Undoubtedly this will disappoint those organisations that had hoped to benefit, e.g., through access to funding, from any such proposal.
Conclusion
Inevitably, as the Bill progresses through Parliament it will be altered, so the full impact of the proposals can only be surmised at this time. However, it is clear that RTB will be restricted – just how much it will be restricted is what may change further. Also, with the new Regulator, the form and style of regulation is intended to change.
For some, the proposals will not go far enough or may represent missed opportunities, while for others the proposals may be too radical – what do you think? As the matter is debated in Parliament and among the housing sector these differences of opinion will become apparent and may lead to changes before the Bill becomes law.
This article has only considered a few highlights from the Bill and does not attempt to summarise the full proposals set out in that 70 page document! If you have any queries or specific areas of concern in relation to the Bill bto is happy to assist you to address these.
Contact:
Marion Davis
(Information posted in February 2010 and may not have been updated at time of reading).