To ask the Scottish Government what its response is to the report by Hamptons, which states that renting in Scotland continues to be more expensive than buying property, while in many parts of the rest of the UK, it has become less expensive as a result of the COVID-19 pandemic.
A direct comparison of the costs of renting and buying is complicated because a range of factors need to be taken into account. For example, the capital element of a repayment mortgage creates an asset for the owner, which rent does not; conversely, renters will need to provide a smaller deposit than home owners. Other factors that should be included in a comparison are that, unlike a renter, an owner will be liable for costs such as buildings insurance, repairs and maintenance, and LBTT. It is unclear from the Hamptons Report whether any allowance has been made for these factors in their methodology.
In the year to end September 2020, the average 2-bedroom rent in Scotland was £689, [1] as compared with £793 in England. [2] In May 2021, private rental prices rose by an annual 1.3% in Scotland as compared with 1.1% in England. In April 2021, the average house price in Scotland was £160,632, up by an annual 6.3%, while the average house price in England was £268,321, up by annual 8.9%. [3]
We are committed to ensuring that everyone has a warm, comfortable and safe place to live, and to expanding our social and affordable housing stock. Housing to 2040 , Scotland’s vision for housing to 2040, includes a commitment to take action to ensure the housing market operates more fairly across Scotland, providing affordable housing options and choices in all communities.
For the social and private rented sector, we will publish a new draft Rented Sector Strategy, by the end of this year, which will be consulted upon in 2022. The Strategy will be informed by those most affected, that will seek to improve accessibility, affordability and standards across the whole rented sector.
These commitments, builds on the significant reforms already put in place through our 2016 Private Housing Tenancies Act, which provided private renters with a range of new rights and greater security, stability and predictability in their rents. We will also reform Rent Pressure Zones, so that this is a workable tool for local authorities to address high rents in localised areas.
[1] Scottish Government, Private sector rent statistics: 2010 - 2020
[2] ONS, Private rental market summary statistics in England: April 2020 to March 2021
[3] UK House Price Index
