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Rising private rents could increase demand in social housing sector

Latest private rent statistics released by Scottish Government.

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The Scottish Federation of Housing Associations (SFHA) has responded to the release of the latest private sector rent statistics by calling for the Scottish Government to commit to further investment in affordable housing after the current parliamentary term ends in 2021.

The statistics show that between 2018 and 2019, 15 out of 18 Broad Rental Market Areas of Scotland have seen increases in average new let rents for two-bedroom properties, ranging from 0.2% in North Lanarkshire, up to 5.3% in Greater Glasgow. These regional trends combine to show an increase of 2.4% in average new let rents for two-bedroom properties from £652 in 2018 to £668 in 2019. (1)

Sally Thomas, SFHA Chief Executive, said: “Changes to social security and stagnant wages have left many households struggling to make ends meet. Rising private sector rents will only add to that pressure, making private renting increasingly unaffordable, and likely increase demand in the social housing sector.

“While the current affordable housing supply target of 50,000 homes is on track, there remains significant, and increasing, housing need, with over 160,000 households on waiting lists. The only way to meet current and future housing need is for the Scottish Government to commit to investment in affordable housing after this parliamentary term ends in 2021.”

Ends

For further information, please contact SFHA Media Adviser Kirsten Walker on t: 0141 567 6221 m: 0788 788 8348 email: kwalker@sfha.co.uk

Visit our website at www.sfha.co.uk

Follow us on Facebook www.facebook.com/SFHA.HousingScotland

Twitter www.twitter.com/sfha_hq

NOTES TO EDITORS

  1. www.gov.scot/news/average-2-bedroom-private-rents-up-by-2-4-percent/
  2. The Scottish Federation of Housing Associations (SFHA) was established in 1975 and has around 136 members providing affordable housing and wider community services across Scotland, as well as a further 150 commercial associates. The SFHA is owned and governed by its members and exists to lead, represent and support the work of housing associations and co-operatives throughout Scotland.
  3. The SFHA is the voice of housing associations and co-operatives in Scotland. SFHA’s 136 members represent 85% of the sector, own and manage 86% of the 247,000+ housing association stock across Scotland. Together, housing associations and co-operatives provide housing for almost 500,000 people, which is one in every 11 households.
  4. Over 15,000 staff are employed by SFHA members across Scotland, 93% of the staff within the sector.
  5. Housing associations and co-operatives are not-for-profit bodies, regulated by the Scottish Housing Regulator.

 

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