Chamber and committees

The Scottish Government does not require local authorities to record the grounds on which a tenant is evicted when they present as homeless.

Section 11 of the Homelessness etc. (Scotland) Act 2003 requires a landlord to notify the local authority when proceedings for possession are raised but there is no requirement for the local authority to record the grounds when it receives notice.

The Scottish Government’s code of guidance on homelessness recommends that on receiving notification, the local authority should take the most proactive approach possible to prevent homelessness occurring.

Local authorities can collect information on grounds for eviction when a household presents as homeless, especially if they can undertake activity which can prevent homelessness. Local authorities can also amend the section 11 notice to collect this information for their own purposes, in particular for the prevention of homelessness.

The Affordable Housing Supply Programme was allocated £134 million in Financial Transactions in 2022-23 and we have recently agreed that £60 million will be made available for the Open Market Shared Equity Scheme and £74 million for the Charitable Bond demand led programmes in 2022-23. A further £92 million in Financial Transactions was allocated to the wider housing budget for 2022-23, with £12 million of this earmarked for historic carry forward commitments. All options are being actively considered to maximise the use of the remaining Financial Transactions to support the delivery of homes.

The information on properties purchased through the Scottish Government shared equity schemes (Help to Buy (Scotland), the Open Market Shared Equity (OMSE) scheme, New Supply Shared Equity (NSSE) and the First Home Fund is not recorded by Scottish Parliamentary region. It is recorded by Local Authority area and information on the numbers of properties purchased in each year of each scheme can be found in the published figures at the following links.

Help to Buy (Scotland) under Monitoring Information Report

https://www.gov.scot/policies/homeowners/help-to-buy/

Open Market Shared Equity and New Supply Shared Equity under Affordable Housing Supply Programme annual out-turn reports and related data

https://www.gov.scot/policies/more-homes/affordable-housing-supply/

First Home Fund

https://www.gov.scot/publications/first-home-fund-spend-and-units-monitoring-information-report-december-2019-to-march-2021/

This data is taken from UK Finance statistics, and relates to mortgage advances for home purchase extended by lenders to first-time buyers in Scotland. Over the 12 months to March 2022, there were 34,310 mortgage advances for home purchase extended to first-time buyers in Scotland, as compared with 30,360 in the preceding 12 months, a rise of 13%.

The Open Market Shared Equity thresholds are reviewed annually each December to reflect the overall movement in average house prices across all transactions over the previous financial year in each area, based on house price data from Registers of Scotland on the lower quartile of house prices in urban areas and the median of house prices in rural areas. The price threshold figures used are rounded up to the nearest £5,000.

Every few years we carry out a more comprehensive analysis of house prices by linking house price data with property characteristics data. This provides more detailed figures by property size category for lower quartile and median prices. This was last carried out using data for 2015-16, and has been applied to the thresholds from 2018 onwards, with the price thresholds for each year as noted above being updated to reflect the overall movement in changes in house prices in each area over time.

We have already committed in Housing to 2040 to review and consider potential reforms to the current eviction grounds under the Private Residential Tenancy (PRT) after 5 years of operation, which will be at the end of this year.

We have already started to seek views on the effectiveness and operation of the existing eviction grounds for the Private Rented Sector as part of the New Deal For Tenants consultation to help inform the review when it begins and we will continue to work with stakeholders during it.

As highlighted in Generation Rent’s research, measures are in place under the PRT where a tenancy has been ended due to misleading information, the First-tier Tribunal have the power to make a wrongful termination order against the landlord and award compensation to the tenant. The use and effectiveness of wrongful termination orders will form part of the review.

My officials are currently reviewing the operational and delivery arrangements for the Home Owners Support Fund to consider what improvements can be made, including capital and equity arrangements for the scheme.

The private rented sector has seen a steady increase in size over the last 20 years, more than doubling in size, with some annual fluctuations. We will continue to monitor the whole housing market using the Landlord Register along with other statistical information on a regular basis and will consider further should significant changes happen.

Individual landlords will enter and leave the sector depending on their personal and business circumstances and through the Private Residential (Tenancies) (Scotland) Act 2016, strong protections and processes are in place for tenants in that situation.

The Scottish Landlord Registration provides data on the number of private landlord registrations, for example in relation to the number of new applications, renewals made and the number of properties these relate to, on a monthly basis.

Official statistics on the sector from the Scottish Household Survey, are released as soon as they are available. In recent years, national results from the Scottish Household Survey have been published around September following the survey year, although Covid-19 has impacted on this survey, with 2020 results published in January 2022 and 2021 results scheduled for publication in December 2022.

At present, there is no marked increase in applications to the Home Owners Support Fund (HOSF). However, to ensure the scheme has maximum impact as part of our response to the current economic situation, I can confirm my officials are currently reviewing HOSF to consider what more can be done through the scheme to support homeowners struggling with mortgage repayments as a result of rising interest rates and the cost of living crisis.