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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 5 April 2025
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Displaying 1101 contributions

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Local Government, Housing and Planning Committee [Draft]

Housing (Scotland) Bill: Stage 1

Meeting date: 10 September 2024

Paul McLennan

I am keen to look at that more broadly outwith the bill. I have met the Scottish Association of Landlords on a number of occasions, and we have another meeting coming up. One of the key issues is that there has to be a tripartite agreement and almost a strategic approach. That includes not just the Scottish Government, landlords and investors but local authorities. In discussions with local authorities, we are trying to work with them to understand what the private rented sector looks like in Glasgow and in Edinburgh and what other roles it has in other parts of Scotland. When I have meetings with local authorities, I always ask them about the role of their private rented sector.

I have a meeting with John Blackwood and the Scottish Association of Landlords to talk about what that approach looks like. How do we get a closer relationship between the Government, the rented sector and local authorities? We will explore that and see what we can do there. The private rented sector is an incredibly important part of striking the balance with housing, but it is different in every part of Scotland, so it needs slightly different approaches. That is an important aspect.

10:15  

Local Government, Housing and Planning Committee [Draft]

Housing (Scotland) Bill: Stage 1

Meeting date: 10 September 2024

Paul McLennan

I will talk about the specifics of the bill. It is important to recognise the private rented sector—I will touch on MMR and BTR in a wee second.

First, the private rented sector is important. We have had discussions with the City of Edinburgh Council and Glasgow City Council and it is fair to say both councils know that they need to work more closely with the PRS in a strategic approach. I would like and would encourage deeper discussions on the role of the PRS in Edinburgh, Glasgow and other parts of Scotland and for that to be part of local housing strategies, and we have written to local authorities about that.

The second consideration is how we ensure that the sector grows, and that needs to be recognised in the bill. The bill tries to strike a balance between what is proposed for rent control and the need to bring in investment. Investment might look like a landlord who currently owns one property buying another; or someone who owns five or 10 properties looking at doubling up. I have said to the SAL that I want to see people coming back into the sector. The latest data shows that numbers have slightly increased. Anecdotally, having spoken to the councils in Edinburgh and Glasgow, I know that they have found that landlords who own single properties are selling up but they are selling those properties to landlords who have a bigger portfolio, such as five, 10 or 15 properties. The number of landlords is probably decreasing and the number of properties in the sector is slightly increasing. At the moment, there is a slight lag, but that is the data that is coming through on that. That is recognised.

There are a couple of other things. If a local authority says that it has a requirement for rent controls and comes to ministers, there is also the opportunity to review the matter then. If there is a change in circumstance, for example, rent controls can be revoked. It is not that they are in place for five years and cannot move. There is an opportunity to discuss them and to have flexibility.

One question is whether we can give that clarity through rent controls. If they are a local authority’s responsibility, there is flexibility to change them if circumstances change. However, we have to balance how we get into MMR and BTR.

Obviously, we recognise that MMR—housing associations—is an important part of the sector. In Glasgow, for example, because the council is a non-stockholding authority, RSLs have a really important part in how MMR stock is developed. Again, we have listened to what Glasgow City Council is saying and we will consider that. It is the same with Edinburgh. There are a number of housing models, not just RSLs. The question is how they deliver.

There is that wider discussion. Local housing allowance obviously has a part to play in the matter. There have been discussions with the UK Government previously and there are discussions now about what the role of LHA is. That is an important part of the matter.

We are trying to encourage BTR. We have churn in properties in Edinburgh and Glasgow. That is turning round. We also need to recognise not just the role of BTR in housing—it is important because it increases supply—but its role in bringing investment into Scotland and in construction jobs, as well as the gross value added that it brings into Scotland.

We have picked up on the importance of those things in the discussions about BTR and MMR that we have had with stakeholders and with individual landlords through the Scottish Association of Landlords, for example. On the other hand, we have to make sure that rent controls are there to protect people who need them. The challenge for me with the bill is in striking the right balance. I think that we are moving in the right direction, and I appreciate the point that you make about it being a framework bill.

I am happy to come back to the convener to discuss amendments and any changes in detail when those come through, but it is important to get the right balance. It is a tough ask in a complex market. It is not that one size fits all, but that is what we hope to achieve. I am happy to come back to the committee at the appropriate stage to discuss those matters.

Local Government, Housing and Planning Committee [Draft]

Housing (Scotland) Bill: Stage 1

Meeting date: 10 September 2024

Paul McLennan

I mentioned Edinburgh and Glasgow because when we look at rent increases we see that they are areas that have been under pressure. I think that that is down to supply and demand, and to much broader measures. I talked about how we might bring forward strategic sites in Edinburgh and Glasgow. We have had discussions in Edinburgh and Glasgow on that; for example, I asked the Edinburgh city region body to produce a report on the eight strategic sites there and to say what is required to bring them forward and the time for that, because the quicker we can increase supply, the better. That is basic economics around supply and demand. Glasgow is similar—a broader approach will be taken through looking at the city region.

When you look at rent increases in different parts of Scotland, you sometimes see rent increases that are quite low. I have visited parts of Scotland—for example, Inverclyde—that have that opposite problem. Therefore, the local approach is really important. I am not saying that the controls need to be in Edinburgh and Glasgow—that is not a Government target. I gave those as examples because they are the areas where large rent increases have been identified.

Obviously, we would consult the Convention of Scottish Local Authorities and the local authorities on what that looks like, and we would look at the data behind that to be sure about what is taken forward. The process has to be done in consultation with local authorities and based on the data. As I have mentioned, we need to do a little more on the data and to work with local authorities on that. For example, I talked about the size of the PRS in Edinburgh and Glasgow. I would like to see closer collaboration between local authorities, the PRS and the Government on what the sector looks like, its opportunity to grow and its role in tackling homelessness. How do we incentivise people to come back into the PRS? That is a much broader approach.

There is also a need to consult the local community on what rent controls actually look like. However, we need to have flexibility in the system, based on what is required in Edinburgh and in Glasgow. A rent control area will be set out for a period of time, but if we find that the data changes over the period, the rent controls might not stay in place. If there are changes in the economy, we will have the flexibility to remove the rent controls at those times.

I gave Edinburgh and Glasgow as examples because those are the areas where the largest rent increases have been.

Local Government, Housing and Planning Committee

Housing (Scotland) Bill: Stage 1

Meeting date: 10 September 2024

Paul McLennan

I am happy to discuss that in more detail. In principle, it is something that we would consider. The Scottish Association of Landlords has discussed unscrupulous landlords. You mentioned that we are talking about only a small number of people, but how do we ensure that there is not an impact? You are right: the EPC is an important part of how information is provided, and the association recognises that. The association has to make sure that it is limiting the number of landlords such as that who are in place. There could be a carrot-and-stick approach, and the stick would be to include measures on that in the legislation.

I would be happy to talk about that in more detail, convener. I do not know whether Charlotte McHaffie or Catriona MacKean want to comment.

11:45  

Local Government, Housing and Planning Committee

Housing (Scotland) Bill: Stage 1

Meeting date: 10 September 2024

Paul McLennan

That has been recognised as a key issue. I visited a rent deposit scheme to see the work that it does, and I was impressed by the way that it tries to return deposits to the best of its ability. Unclaimed deposits represent a substantial amount of money, and that is one of the key issues that it discussed with me. It is important to have the necessary contact information. It made the point that, sometimes, it has only one telephone number or email address and that, if somebody changes that, it suddenly cannot get hold of them. People get to the end of their tenancy, move on and forget about their deposit.

Local Government, Housing and Planning Committee

Housing (Scotland) Bill: Stage 1

Meeting date: 10 September 2024

Paul McLennan

I was going to mention that. Of course, we would be happy to take part in that.

Local Government, Housing and Planning Committee

Housing (Scotland) Bill: Stage 1

Meeting date: 10 September 2024

Paul McLennan

I am sorry, but I will make another point.

One of the key things—which Mr Griffin knows about—is that I will be having discussions: I think that we have a note out to Mr Griffin, Mr Briggs and others about discussing the bill. When we talked about the Housing (Cladding Remediation) (Scotland) Bill, one of the key things for me was about making sure that it was as collaborative as possible. I really want to see that approach again. I will be talking to Mr Griffin, Mr Briggs and other party spokespeople about that. It will be about saying, “Okay, where do you see this going?”. Ultimately, the bill has to get through Parliament as well. It is about discussing it and trying to be as collaborative as possible.

I am happy to meet Mr Griffin and Mr Briggs. I think that there are already letters out and meetings planned within the next few weeks to discuss that. Again, that is open to any member who wants to discuss the bill with me; I am happy to discuss it with them.

Local Government, Housing and Planning Committee

Housing (Scotland) Bill: Stage 1

Meeting date: 10 September 2024

Paul McLennan

It is a case of trying to strike a balance. I think that what is proposed puts an additional onus on landlords, but we also need to raise awareness of what is there for tenants. I mentioned the fact that, in a rent control area, landlords have to provide specified information to a tenant at the start of the tenancy. There is an onus on landlords to do that. We will continue to discuss that with tenants, but it is a case of striking a balance.

Local Government, Housing and Planning Committee

Housing (Scotland) Bill: Stage 1

Meeting date: 10 September 2024

Paul McLennan

Of course. Obviously, those are discussions that I have in my day-to-day role and not just on the bill, but I appreciate your point.

Local Government, Housing and Planning Committee

Housing (Scotland) Bill: Stage 1

Meeting date: 10 September 2024

Paul McLennan

My understanding is that the minister at that time would still be able to bring in rent controls if they wished to do so. However, such circumstances would be highly unlikely. As you said, you are talking about the situation just now, and we do not know how circumstances might change in time.