Housing wealth matters

Houses-on-coins-by-Images-Money

With the widening gap between the richest and poorest across different measures of inequality, there is growing awareness that income is not the only factor that impacts living standards. This has led to increasing interest in the distribution of wealth. While wealth can take various forms, the most visible way households accrue and store substantial amounts of wealth is through property ownership.

Property wealth in Scotland has increased ten-fold over the last 50 years – driven primarily by rising house prices, but also by the increasing number of properties and transfer of public housing into the private sector. However, this wealth is not distributed equally. In its recent examination of the scale and distribution of housing wealth in Scotland over time, the Resolution Foundation highlighted the marked rise in housing wealth inequality over the last decade, which is now twice as high as income inequality.

Why?

The new report shows that the growing inequality in housing wealth is in large part due to the fact that while very few families in Scotland currently have no form of income, over one in three Scottish households hold no property wealth at all and those in the top income decile own around 30% of the country’s property wealth.

Additional property ownership has also increased in recent years, adding to the level of inequality. The biggest wealth gaps were found to be in Scotland’s largest cities – Aberdeen, Dundee, Edinburgh and Glasgow – where low rates of home ownership are coupled with ownership of multiple properties, concentrating housing wealth in fewer households’ hands.

In addition, the last decade has seen many people struggle to get a foot on the housing ladder and today’s young people hold less housing wealth than their predecessors. Location was also found to have an impact as house prices can differ greatly by local authority, although these variations have reduced in recent years.

As a result, levels of housing wealth inequality are now nearing the same levels as those in England and Wales, although rates of homeownership remain higher in Scotland than elsewhere in the UK.

With more people now having some form of income than ever before, it is perhaps reasonable to ask why housing wealth is so important.

The Foundation’s report highlights that owning property has value over and above general wealth effects in that it can also provide a secure home; a source of income; and greater financial security in later life. Indeed, the UK Collaborative Centre for Housing Evidence (CaCHE) and Policy Scotland’s evidence review, which complemented the Foundation’s analysis, also highlights why housing wealth matters, citing many economic, health and social impacts.

Why housing wealth matters

While it has been previously argued that housing wealth inequalities are of little significance in terms of macroeconomic impact and can therefore be disregarded, there is now a growing body of evidence suggesting that in fact these inequalities do matter. The evidence review notes that:

  • housing assets are of growing importance encouraging household spending and were implicated in the global financial crisis;
  • access to home ownership is increasingly reliant on parental property wealth with negative implications for social mobility;
  • housing wealth is cumulative: e.g. buy-to-let has increased dramatically in Scotland over the last 20 years, often facilitated by the re-mortgaging of existing property by owners;
  • rising house price and wealth effects reduces productivity growth; and
  • different rates of house price change create inequalities across UK regions.

This is not only the case in Scotland and across the UK; across Europe housing wealth inequality has been shown to exacerbate socio-economic differences by segregating households based on income levels.

In relation to health and wellbeing, housing wealth can be a double-edged sword. A rise in house prices can lead to increased physical health of owners but decreased physical and mental health of renters.

Of course, historically, housing wealth has been seen to contribute to reduced wealth inequalities due to increased home ownership, however, there is now also an emerging concern that high house prices and rents may impair labour supply and productivity.

HWI

Main elements of wealth inequality processes within the housing system (CaCHE, 2019)

It is clear that income is not the only important factor in inequalities. This is illustrated by recent figures on child poverty and in-work poverty, which show that despite recent record levels of employment, two thirds of children living in poverty come from working households and more than half the people living in relative poverty in 2017/18 (53%) lived in households where at least one adult was in paid employment.

The Resolution Foundation notes that while the scale and distribution of housing wealth has changed dramatically over the past 50 years, wealth taxation has not.

Indeed, it has been recently argued that policy is widening the housing wealth divide and that the local supply of housing needs to be realigned with local housing demand if this is to be rectified.

Way forward

The research suggests that a number of actions could be taken to address the growing housing wealth inequalities in Scotland:

  • Firstly, support for sustainable home ownership, especially for those on lower incomes or in the younger age bracket is highlighted as one obvious response, although it notes that policies such as Help to Buy risk stimulating demand to the point that house prices are driven up. As a result, it is suggested that policy action to lessen the demand for holding additional properties would be a more sensible strategy.
  • Second, it is argued that there is a strong case for substantial reform in the area of the property taxation to address the current mismatch between the value of housing wealth and taxation.
  • Third, it is suggested that the Scottish Government could give consideration as to how the benefits of holding housing wealth can be provided to those who are unlikely to ever be able to support home ownership, with more efficient taxing of housing wealth. In addition, the government could also build on their recent reforms which have provided tenants with greater security of tenure and more predictable rent increases, and look to provide more support to low-income families via further supplements to benefits.

With the current system of council tax described as “highly regressive”, “inequitable” and “inefficient”, the research calls for much needed reform.

Both reports acknowledge that radical change is a political challenge but while the Resolution Foundation’s report states the case for action is clear, the evidence review advises caution, suggesting that a more equal housing system is a long-term aspiration rather than something practical and realisable in the short to medium term.


If you enjoyed reading this, you may also be interested in some of our previous posts on housing topics.

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Taking forward key issues in Scottish planning at this year’s SPEL conference

On 19th September 2019, we welcomed speakers and delegates to Edinburgh for the 29th Scottish Planning and Environmental Law Conference.

Before we began, the conference was invited to pause to remember and reflect on the life and achievements of Robert (Roy) Martin QC, who sadly passed away earlier this year. Roy was a long-time supporter and friend to the SPEL conference and a great addition to our speaker line up on many occasions. Everyone connected with SPEL would like to extend our condolences to Roy’s family and his colleagues at Terra Firma Chambers.

The conference brought together planners, planning lawyers, researchers and others who work in the field of planning, housing, development and infrastructure in Scotland for a day of discussion and debate around some of the key issues facing Scottish planning today and in the future.

Set to the backdrop of the most recent Scottish planning bill, the day focused broadly on two themes: the approach to housing, land value and infrastructure delivery;  and the impact of the community empowerment agenda. As in previous years, themed discussion topics were supplemented by the always well-received case law updates from conference sponsors and planning and environmental law specialists Terra Firma Chambers.

The day began with some brief reflection from our keynote speaker, Keith Winter, Executive Director, Enterprise and Environment, Fife Council. Keith considered his years in the profession, and the great steps planning has taken from its earlier years. He also posed some interesting questions for delegates and other speakers alike about the potential for the future of planning, discussing “positive planning”; placemaking; the challenges of needing to meet both local and national level expectations and meeting the challenges that face the next generation of planners – such as climate change – head-on.

Photo Copyright Rebecca Jackson

Housing, infrastructure and land values are all key topics for planners, and we spent the mid-morning session discussing all three. In the day’s longest session, panellists grappled with big topics for planning including whether the delivery of housing and infrastructure is becoming any easier; if more housing should (or could) be allocated to housing; how infrastructure will be funded in the future and whether we should be paying more attention to delayed sites which have already been granted approval.

Panellists brought a wealth of experience and perspectives to the discussion, with contributions from Taylor Wimpey, Homes for Scotland, Scottish Futures Trust, Lichfields, Renfrewshire Council and the Scottish Land Commission. The wide-ranging discussions on the supply and allocation of land for development, the implication of development for infrastructure and how multiple partners – not just planners – need to work together in order to create wonderful places where communities can live and work.

Photo copyright Rebecca Jackson

The afternoon session was dominated by discussions of community empowerment in planning and what opportunities and challenges the community empowerment agenda in Scotland could bring for the profession. A panel discussion which brought a refreshing range of perspectives was well received by an audience of delegates who were eager to ask questions and respond to comments from the panel, which included Nick Wright, from Nick Wright Planning; Pippa Robertson, director of Aurora Planning; Dr Calum MacLeod, Policy Director from Community Land Scotland and Antony McGuiness, Forward Planning team leader from West Dunbartonshire Council.

Panellists grappled with the challenges of aligning local place plans, local outcome improvement plans and local development plans; how community-led action can help address inequality and improve outcomes at a local level for communities and how integrating community and spatial planning is working in practice at the moment. The discussions proved to be one of the most successful of the day, with many delegates commenting on the value of the discussions to their own professional work.

Photo copyright Rebecca Jackson

The final session of the day explored the implications of the new planning act and its potential for delivering strategies which put place at their heart and enhancing the delivery of sustainable development projects across Scotland. Panel members included Stefano Smith, Director of Stefano Smith Planning and former Convenor of RTPI Scotland, Jacqueline Cook, Head of Planning at Davidson Chalmers Stewart LLP and Pam Ewen, Chief Officer of Planning at Fife Council and the Junior Convenor of Heads of Planning Scotland.

The conference provided an opportunity for reflection about the future of planning in Scotland and how practitioners from many different professions – not just planning and planning law – will have to come together to ensure that opportunities are seized upon.

And while it was widely acknowledged that the current model is far from perfect, and more exploration is needed to understand the potential and the application of the new planning legislation which has been introduced in recent years, it’s clear that there is willingness among the profession to learn lessons and to apply knowledge and determination to the current planning landscape to promote and develop planning in Scotland in the years to come so it can fully deliver for Scotland’s communities.

We would like to thank our speakers, those who attended and our sponsors, and hope to see you all next year!

If you enjoyed this article you may also like to read:

Follow us on Twitter to find out what topics have been interesting our research officers, or search #SPEL2019 for more insight into the conference day. Delegates can get in touch for copies of presentation slides where available.

We publish Scottish Planning and Environmental Law Journal every two months. More information on the journal and how to subscribe is available here.

A road less travelled: celebrating Gypsy, Roma and Traveller History Month – part 1

Traditional Scottish Traveller bow tent at the Highland Folk Museum, Newtonmore

This month is Gypsy, Roma and Traveller History Month (GRTHM).

GRTHM aims to celebrate and promote awareness of Gypsy, Roma and Traveller (GRT) history, culture and heritage, and the positive contribution that GRT groups have made and continue to make to society.  It also seeks to challenge negative stereotypes, prejudices and misconceptions associated with GRT groups.

Over the next two blog posts, we will raise awareness of the many issues faced by GRT communities in the UK today, and highlight some lesser known aspects of GRT culture and heritage.

Gypsies and Travellers are not a homogenous group

One common misconception is that Gypsies, Travellers and Roma are a homogenous group.

In fact, GRT is a term which encompasses many distinct ethnic groups with their own cultures, histories and traditions.

This includes Romany Gypsies, who today are generally of English or Welsh heritage.  Gypsies first arrived in Britain in the 16th Century. The term ‘Gypsy’ was coined due to a common misconception that Gypsies originated from Egypt. However, recent DNA studies suggest that they actually originated from the Indian subcontinent.  Some Gypsies may prefer to be known as either English Gypsies or Welsh Gypsies specifically.

Irish Travellers are Travellers with Irish roots, however, a recent DNA study suggests they have been genetically distinct from the settled Irish community for at least 1000 years. Irish Travellers have their own language – Shelta (also known as Cant).

Scottish Gypsies/Travellers are indigenous to Scotland.  Their exact origins are uncertain, but it is thought that they may be descended from the Picts, and/or the scattering of the clans following the Battle of Culloden in 1746.  Certainly, Scottish Travellers tend to share many of the same Clan surnames – including Stewart, McMillan, McPhee and McGregor.

Scottish Travellers also have their own language – the Gaelic-based Beurla Reagaird.

European Roma are descended from the same people as British Romany Gypsies, and they are Gypsies/Travellers who have moved to the UK from Central and Eastern Europe more recently.  Some have arrived as refugees and asylum seekers. While they face many of the same issues as Gypsies, Irish and Scottish Travellers, they are also subject to a number of additional challenges.

There are also other groups that are considered ‘cultural’ rather than ‘ethnic’ Travellers.  These include Occupational Travellers such as fairground and circus owners and workers and New Age Travellers – individuals who have chosen a travelling lifestyle for ideological reasons.

Distinct ethnic minorities protected by law

Whilst there are some similarities between GRT groups in terms of lifestyle, economic, family and community norms and values – and certainly in terms of the discrimination and poor outcomes that they experience – there are clear genetic differences between each of the groups.

As such, Gypsies, Irish Travellers and Scottish Travellers are each considered ethnic minorities in their own right and protected as “races” under the Equality Act 2010.  Migrant Roma are protected both by virtue of their ethnicities and their national identities.

However, despite this protection, GRT groups are still subject to high levels of discrimination.

‘The last acceptable form of racism’

Indeed, prejudice and discrimination has affected GRT groups throughout history.

In the 16th century, any person found to be a Gypsy could be subject to imprisonment, execution or banishment.  Even after anti-Gypsy laws were repealed, discrimination continued.  In the 19th and early 20th centuries, it was not uncommon for doctors to refuse to attend to Travellers.  And despite Travellers’ strong Christian beliefs, churches would often refuse to bury their bodies within their grounds.

And today, GRT people have the worst outcomes of any ethnic group across a huge range of areas, including education, health, employment and criminal justice.  They have the poorest health and the lowest life expectancy of any ethnic group in the UK, and are subject to high levels of racism and hate crime.

GRT groups still face barriers to accessing health services.  As part of a mystery shopper exercise by the Friends, Families and Travellers (FFT) charity, 50 GP practices were contacted by an individual posing as a patient wishing to register without a fixed address or proof of identity. They found that almost half would not register them, despite NHS guidance to the contrary.

And while racism towards most ethnic groups is now seen as unacceptable and less frequently expressed in public, racism towards GRT groups is still common and often overt – even among those who would otherwise consider themselves ‘liberal’ or ‘forward thinking’.  This had led it to be termed “the last acceptable form of racism”.

The 2015 Scottish Social Attitudes Survey found that over 30% of people in Scotland would be unhappy with a close relative marrying a Gypsy or Traveller, and 34% felt that Gypsies or Travellers were unsuitable as primary school teachers.

Research by Travellers Movement has found that four out of five (77%) of Gypsies, Roma and Travellers have experienced hate speech or a hate crime – ranging from regularly being subject to racist abuse in public to physical assaults.

Prejudice and discrimination against GRT groups is not limited to the public – there is also evidence of discrimination against GRT individuals by the media, police, teachers, employers and other public services.

Even politicians have openly displayed anti-GRT sentiment.  In 2017, the Conservative MP for Moray Douglas Ross, stated that he would impose “tougher enforcement against Gypsy Travellers” if he were Prime Minster for the day.

His remarks were widely criticised.  Amnesty International’s Scottish director, Naomi McAuliffe, said “When our elected leaders use this sort of blatantly partisan speech, they set a terrible example that only serves to foster further discrimination and prejudice.”.

A lack of sites has led to a ‘housing crisis’

Mr Ross’s remarks reflect another common misconception about GRT communities – that they all live in caravans, purposefully choosing to set up on unauthorised sites.

The truth is that while Gypsies and Travellers have traditionally lived a nomadic life, living in bow tents, wagons – and even caves – over 70% of Gypsies and Travellers no longer live in caravans, having chosen, or being forced for one reason or the other – disability, old age, lack of suitable sites – to move into traditional ‘bricks and mortar’ accommodation.

For those who do still live in caravans, it is widely recognised that they face a ‘housing crisis’ – an urgent shortage of authorised sites to set up on, which threatens their travelling heritage.  It is this shortage that drives much of the use of unauthorised sites.

Of those sites that do exist, quality has been raised as a key issue.  Many sites can lack even the most basic amenities, and some are sited near recycling plants or in other undesirable locations.  Poor conditions and sanitation contributes to poor levels of health, exacerbating existing health inequalities.

Further inequalities

In our next blog post, we will look in more depth at the inequalities that GRT communities face – in health, education and employment.  We also highlight work to address these inequalities and raise awareness of GRT communities’ rich cultural heritage.


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Engaging the ‘silent majority’ in planning: is digital the answer?

It has long been a concern that traditional planning consultation methods do not adequately capture the views of the majority.

Instead, they tend to be dominated by individuals with certain characteristics – typically older people or retirees, with high disposable income and social capital, and the time and means to attend in person.

This is partially because traditional planning consultation methods, such as public exhibitions, mainly involve individuals physically attending events at pre-specified places and times.

Younger people, students, people with disabilities, and working families with or without children, may find it difficult to attend and engage with such consultation methods.

In addition to this – people are also more likely to engage with the planning system when they are opposed to something.  Research by Shelter found that people opposed to local housebuilding were three times more likely to actively oppose an application than supporters were to actively support it (21% compared to 7%).

However, the majority of people surveyed were actually supportive or neutral regarding local house building.  This means that in many cases, there is a ‘silent majority’ – people whose voices are not being heard by the planning system.

This ‘silent majority’ often includes young people and others who may have the most to gain from new housing, employment and other benefits created by local developments.

In the rest of this blog, we consider the potential of social media and digital apps to make the planning system more accessible, inclusive and representative.

The potential of social media

Social media is everywhere – and as such it has a huge potential to reach and engage people from all walks of life.

Through adverts or posts in relevant groups, information about developments can be shared, with likes and comments providing feedback.  Short questionnaires or polls can also be administered to help gauge public opinion on a range of matters, such as locations, layouts and designs.

At present, social media is not a widely used planning consultation method – however, there is support for it to become so.

In 2016, a YouGov survey explored local councillors’ attitudes towards the use of social media during public consultation.  It found that:

  • 75% of councillors felt that social media was an important or very important engagement tool
  • 74% believed that social media would add value when reviewing planning applications
  • 60% felt that developers should be doing more to engage with local communities through social media
  • 60% believed social media will increase in importance as a public engagement tool over the next three years

It has been argued that social media is a much more relevant way to share information and consult on development proposals, particularly for young people.

It also has the potential to help overcome many of the time and accessibility barriers that prevent people from attending traditional ‘time and place’ consultation events.  And it has an incredible potential reach too – with Facebook having a total of 44 million active users and Twitter 14 million.

There are, however, some concerns – particularly regarding the verification of an individuals’ locality and the public management of negative comments, particularly as users can remain anonymous.  The potential for cyberactivism against a development and the spread of ‘fake news’ are also concerns.  Social media training would no doubt be required for those using social media to consult on developments.

Innovative apps

In addition to social media, digital apps offer an exciting new way for people to engage with the planning system.

Hailed as ‘Tinder’ for urban planning, CitySwipe is a new digital tool being used in Santa Monica’s downtown area to learn citizens’ preferences and concerns about the city’s urban core.  It enables local residents to swipe left or right to indicate their preferences regarding various different urban development scenarios.  For example, users may be asked to choose between different types of outdoor seating.  The app also covers attitudes towards things such as walking, bike lanes, housing and other such areas of interest to urban planners.

If CitySwipe is Tinder, then TrueViewVisuals can be likened to the Augmented Reality (AR) mobile gaming app ‘Pokémon Go’.  AG is a technology that superimposes a computer-generated image on a user’s view of the real world, thus providing a composite view of both.  TrueViewVisuals makes use of this to enable users to use their mobile device to view proposed developments in existing locations and is thus particularly useful in assessing their potential visual impact.

Bootlegger is a mobile app originally designed to film live music, which is now also being applied to the urban planning context.  It enables users to collaborate and share their footage with others, and edit them into a single video.   In Berwick-upon-Tweed, Bootlegger has been used to enable members of the public to make their own ­films regarding planning proposals and the neighbourhood area and share them with others.

ChangeExplorer uses location data to provide users with ‘push notifications’ when they enter a geographic location that is subject to redevelopment plans.  Users can then view and comment on the plans, making it much easier for local residents and visitors to have their say on planning decisions.  It has been used successfully by North Tyneside Council, where it was found to be “an effective tool in encouraging participants to think about what they would like to change and for them to feel empowered in raising relevant issues”.

Enhance and evolve

These are just a handful of the ways in which technology can be used to engage young people and others within the ‘silent majority’.  It is an area which is developing all of the time – as recent reports by the Scottish Government, Future City Catapult and the RTPI show.

It also comes at a time where there is wider discussion of the need to make planning more inclusive.  In order to do this, it is essential that the views captured by planning consultations truly represent the needs and preferences of all local residents.

Of course, online engagement cannot replace the need for traditional consultation approaches and techniques entirely.  Instead, they should complement one another, offering both an enhancement and an evolution of the current planning system.  And in doing so, the planning system can meet both the needs and expectations of an increasingly digital world.


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Putting the brakes on rent rises: will London adopt rent controls?

Earlier this year, Mayor of London Sadiq Khan revealed that he plans to include the introduction of rent controls on private rented residential properties in the capital as one of his manifesto promises in the 2020 mayoral election:

“The housing crisis is now having such an effect on a generation of Londoners that the arguments in favour of rent stabilisation and control are becoming overwhelming.”

Research published in 2018, found that for the third consecutive year London was the most expensive city in Europe for renting accommodation. The Mayor is concerned about rent increases, particularly by unscrupulous buy-to-let landlords. He now seems set to call on the government to grant him new powers on rent stabilisation.

The case against controls

Opponents of rent restrictions believe that landlords finding their rental income reduced would be unable to maintain properties, leading to poorer housing standards. Some might choose to sell their properties rather than put up with controls on their income, adding to London’s already acute shortage of accommodation to rent.

There is also concern that rent controls could strangle London’s fledgling build to rent (BTR) market. Across the UK, the number of BTR homes has soared – a 30% increase was reported in 2018 – and growth has been particularly strong in London. But some fear that rent controls could scare investors away from BTR, resulting in a fall in properties available to rent.

German lessons

Concern about rising rents is by no means confined to London, and if the capital does adopt rent controls, it will be following an international trend towards putting the brakes on rent rises in the private sector.

Germany introduced legislation in 2015 specifying that landlords taking on new tenants could only raise rents by up to 10% above the local average for similar properties. One of the first cities to use the new powers was Berlin, where rapidly rising population numbers have been putting greater strains on the city’s housing market. Hamburg and Munich were among the more than 300 cities that followed Berlin’s example.

Overall, the impact of Germany’s rent controls has not been as positive as intended. A study by the German Institute for Economic Research found that, while the rent controls had worked in areas affected by the most dramatic rent rises, such as parts of Berlin, in other areas it had not had the same effect. In contrast to the UK, more than 50% of Germans rent their homes, but rent controls have benefitted only a tiny proportion of that number.

The reasons for the failure of rent controls in Germany were set out by The Economist, which reported that landlords have used loopholes to circumvent the controls for newly renovated properties and accommodation being rented out for the first time. In addition, there are no sanctions against landlords who flout the rules. But the article also pointed out the law’s “fatal flaw”:

Landlords are not obliged to disclose a property’s previous rental price; rather, the renters must ask for it before agreeing a new price and signing a contract. In practice, this means that many renters wary of jeopardising their chances of striking a deal end up keeping mum. And a landlord can then add a few euros to the price above that permitted by the brake.

Across the water

In Ireland, rent controls were introduced at the start of 2017, limiting annual rent rises to 2%, but so far the measures have not proved successful. In the first quarter of 2019, rent prices in Dublin rose by 7%.

The reasons mirror the situation in Germany, with a large number of exemptions to the controls,  landlords charging much higher rents for new rental properties, and no sanctions for offending landlords.

The Scottish approach

In 2016, the Scottish Parliament passed regulations intended to strengthen the rights of people renting private accommodation. Among the provisions was a measure enabling local authorities to apply to Scottish ministers for permission to cap rent increases in designated areas. If local councils can prove that rents are rising too much in these “rent pressure zones” (RPZs), a maximum limit will be set on how much rents are allowed to increase for existing tenants each year in that area.

As of yet, no RPZs have been designated in Scotland. Some opponents of the measure have pointed to the difficulties local authorities face in making RPZs work, while others have branded them a failure, and called for them to replaced by nationwide rent controls.

Final thoughts

It remains to be seen whether Sadiq Khan does include rent controls in his election manifesto. If he does, and if he goes on to be re-elected, he will then have to persuade the UK government to grant him the necessary powers. After that, the question is whether London can make a success of rent controls where others have stumbled.


You may also find the following blog posts on the private rental sector of interest:

“The ‘frustrated’ housing aspirations of generation rent”

house prices

A key change in the UK’s housing market over the past twenty years has been the growth of the private rented sector (PRS), with more living in the sector than ever before. This growth has led to the view that there is now a ‘generation rent’ who are priced out of home ownership and stranded in insecure short-term lets for prolonged periods of their lives – fuelling concerns about intergenerational inequality.

At a recent seminar, hosted by the Public Services and Governance research group at the University of Stirling, Dr Kim McKee, a co-investigator for The UK Collaborative Centre for Housing Research (CaCHE), presented the key findings from her research on ‘generation rent’ and precarity in the contemporary housing market.

Who are ‘generation rent’?

The UK 2011 Census highlighted that 40% of private renters were young people under the age of 35. With a challenging labour market, rising student debt and welfare reforms, home ownership and social housing is increasingly out of reach for these young people, who end up stuck private renting for much longer than the previous generation.

It was noted by Dr McKee that there is a clear age dimension to the recent shifts in housing tenure, but that the ‘generation rent’ label is more complex than portrayed. Income and family support were emphasised as just as critical in the understanding of young people’s experiences and future plans, as was geography.

Indeed, other research has highlighted that income and family background have a huge impact on young people’s housing market experiences. The Resolution Foundation’s recent report highlights that young people from wealthier families are more likely to become homeowners, suggesting that there are also intra-generational inequalities.

Dr McKee’s study focused on the inequalities facing these young people through qualitative research with 16 young people aged 35 and under living in the PRS in Scotland or England. Those on low incomes were explicitly targeted with the aim of giving them a voice, which was considered to be largely absent in previous research.

Aspirations vs expectations

There was a long-term aspiration for home ownership among the majority of participants, with a smaller number aspiring to social housing. But private renting was seen as the only short-term option as a host of challenges thwart them from realising their ambitions:

  • mortgage finance
  • family support
  • labour markets
  • student debt
  • welfare reform

The fact that housing tenure was highlighted by respondents rather than housing type or location, as previous research has highlighted, suggests there is a general dissatisfaction with living in the PRS. Indeed, it was noted that the PRS was discussed largely negatively, perceived as the ‘tenure of last resort’.

Despite the continued aspirations for home ownership, there was a marked difference between aspirations and expectations. There was a levelling down of expectations to own and a gap emerging between what the young people aspired to as their ideal and what they expected to achieve. A small minority even remarked that a more realistic goal may in fact be improvements in the PRS. The study showed that such expectations were due, mainly, to low earnings and insecure employment, combined with a lack of family financial support.

While the short-term nature of private renting makes it a very flexible rental option, it also makes it insecure and precarious, creating barriers for tenants who want to settle into a home and community. This is particularly worrying for families with children, who can be greatly affected by the upheaval of having to regularly move.

Emotional impacts

The study was particularly interested in the more intangible and emotional impacts on ‘generation rent’ and how the frustrations in realising their aspirations impacted negatively on their wellbeing.

It was stressed that issues in the PRS are having serious negative impacts on the wellbeing of young people – insecure, expensive and poor quality housing are contributing to depression, stress and anxiety. Moreover, for those on the lowest incomes, such issues are even contributing to homelessness.

Not only is mental wellbeing affected but their physical health has also been impacted by poor quality housing. Problems with rodents, damp and mould, broken white goods and poor quality accommodation in general were all reported by participants.

The experiences of the young people in the study were described as a “sad reflection of housing in the UK today” and raises questions over whether the PRS can really meet the needs of low income groups in particular.

Geography matters 

Another key finding was that where people live really matters, not only because of the spatial nature of housing and labour markets, but also as tenancy rights and regulations vary across the UK.

Recent reforms in Scotland have provided tenants with greater security of tenure and more predictable rent increases. England was highlighted as lagging behind the rest of the UK in terms of regulation and tenants’ rights as it lacks any national landlord registration scheme. Letting agent fees in England were also highlighted as a real issue in relation to affordability.

It was suggested that the rest of the UK could learn much from the Scottish experience, although there is a need to go further, particularly in relation to affordability.

Way forward

A key message from the study was that security of tenure really matters for those living in the PRS but reform of the housing system can only go so far. Participants identified more affordable housing, more protection for renters and income inequalities as areas where the government could intervene to improve things.

Based on the findings, six key policy recommendations were made:

  • ensure security of tenure;
  • take action on rents;
  • provide better education for tenants on their rights, and indeed for landlords;
  • provide more affordable housing; and
  • ensure greater understanding of intra-generational inequalities.

If the wider inequalities within society are also addressed, perhaps the PRS could become an aspiration rather than the ‘tenure of last resort’.


If you enjoyed reading this, you may also be interested in our previous posts on build to rent and meeting demand and improving data in the private rented sector.

Follow us on Twitter to keep up to date with our latest blog posts and find out what topics are catching the eyes of our Research Officers.

New year, new high street: it’s time to reshape our town centres (part two)

Dunfermline town centre

This is the second of a two-part blog on high streets and town centres.  In our last post, we highlighted some recent publications that have sought to address the challenges facing our high streets and town centres.

We looked at how towns could work to diversify their retail offer, placing greater focus upon developing experiences and services that are not easily replicated online – such as hair and beauty services, gyms, cinema, restaurants and nightlife.

We also highlighted the benefits of identifying a town centre’s unique selling point (USP), capitalising on the opportunities presented by the widespread growth of technology, and offering various forms of support to local businesses and entrepreneurs.

In this post, we consider how community involvement, good quality inclusive urban design, the promotion of healthy environments and the creation of homes on the high street can all provide ways to promote and support town centres to better meet the needs of local people in a changing retail and economic environment.

A community-focused high street

The town centre has long been considered the beating heart of a community.  As such, it makes sense that any attempt to revitalise them would have local people at its heart.

In Dunfermline, a pilot placemaking project has made use of innovative, interactive methods of engagement with young people to help plan and deliver town centre improvements.

Young people were asked to assess the quality of the town centre and to identify areas where improvements could be made, using tools such as the Place Standard and the Town Centre Toolkit.

There are lots of other great community-focused town centre initiatives. ‘Can Do Places’ aims to engage the local community in order to bring empty town centre properties back into use in various ways, for example, by providing spaces for budding entrepreneurs or supporting community arts and crafts.

Stalled Spaces Scotland is another noteworthy project – with a focus on greening derelict, under- or unused outdoor areas.  As well as improving the look and feel of a town centre, this scheme also aims to involve the local community and schools in the development and use of the spaces themselves.

A healthy and accessible high street

It goes without saying that if town centres are to attract both people and businesses then they must be both attractive and accessible – easily walkable, safe, and clean.  Indeed, amongst its findings, the High Street 2030 report highlights “calls for improved accessibility that is more environmentally-friendly, new public spaces or areas, centres that better serve older people”.

There has also been considerable discussion around how the design of town centres (and urban areas in general) impact upon various vulnerable groups.  We have blogged on this subject on various occasions, focusing in turn on the creation of places that address the needs of older people, people with dementia, autistic people and children.

There has also been widespread discussion of the relative advantages and disadvantages of shared space street design – which has been used by many places in the UK in attempt to revitalise their town centre spaces with varying levels of success.

As well as their role in the creation of inclusive, accessible spaces for all, there has been some focus upon the link between high streets and health.

Last year, Public Health England published guidance on the development of ‘healthy high streets’ – high streets that have a positive influence on the health of local people.  It focuses on elements such as air quality, enhanced walkability, the provision of good quality street design, street furniture, and communal spaces. It argues that the development of healthy high streets will support economic growth as well as community cohesion.

It also approaches the subject of diversity on the high street – recommending that there is an adequate number of healthy and affordable food outlets and limiting the number of alcohol, betting and payday loan outlets.

A high street to call home

Another way of bringing people back into the high street is to have them literally live there.

At the end of 2017, the Federation of Master Builders published a report ‘Homes on our high streets’, which argued that “revitalising our high streets through well planned and designed residential units could help rejuvenate smaller town centres”.

For example, Aldershot, as highlighted in the High Streets 2030 report, has been making use of the Housing Infrastructure Fund to promote residential development in the town centre and has undertaken property acquisition in the town centre, most recently acquiring the former Marks & Spencer  store.

Creating additional homes above shops or in former retail units not only helps to make use of vacant properties and regenerate town centres, but may also help to address housing shortages in many areas.

 Looking to the Future

So while 2019 may present high streets and town centres with some of their toughest challenges yet, there is a wealth of research, experiences and innovative ideas on which to draw.  The newly announced Future High Streets Fund will no doubt be of use to help put these ideas into practice.

And perhaps most importantly of all, local people remain enthusiastic about developing their town centres and wish to see them flourish. As the High Streets 2030 project noted:

The workshops and interactions provided real insight into the challenges faced by town centres. That they are worth fighting for was abundantly evident from the enthusiasm of those participating.”


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Housing at the push of a button

Sometimes it takes an intractable problem to inspire an inventive solution. Faced with an ageing construction workforce and a shortage of apprentices, the Netherlands has come up with what may prove to be the makings of a housing revolution.

Collaborating with the public and private sectors, Eindhoven University of Technology has been working on a plan called Project Milestone to build five 3D printed houses in the city of Eindhoven next year.

A technology whose time has come

3D printing is a media-friendly term that’s often used as an alternate name for the wider technology of additive manufacturing (AM). The process involves the use of a computer and computer-aided design software to relay messages to a machine which “prints” material in the desired shape. The technology has been in development over the past thirty years, but recently large-scale 3D printers have emerged which can handle materials such as plastic, metal and concrete.

3D printing gets building

Dutch architects and civil engineers have been leading the way in exploring the construction possibilities of AM. In 2016, DUS Architects 3D printed an eight-square-metre cabin, and later initiated a project to build a full-scale canal house in Amsterdam. Meanwhile, in the south-eastern town of Gemert, the world’s first 3D-printed concrete bridge was opened in 2017.

Project Milestone is by far the most ambitious AM construction initiative to date. A park in Eindhoven will be the site for five homes which have been designed to resemble boulders left behind by a retreating ice sheet. Van Wijnen, the contractor for Project Milestone, explains that the building process will be a learning curve:

“The houses will be printed one after the other, which means that each can benefit from what was learned on the previous and can be adapted directly to the wishes of the residents. For example, the first house will be a single-storey structure printed off-site. The ambition is to print the fifth home on location as three layers.”

The homes of the future?

Van Wijnen and other proponents of concrete printing in 3D believe it has the potential to drastically change the future of residential construction in terms of speed, affordability, sustainability, freedom of form and choice. Company director Rudy van Gurp forecasts that by 2022, about 5% of homes will be made using a 3D printer:

“We see Milestone not as an experiment, but as a pioneering innovation that will cause a stir in the construction sector.”

Final thoughts

In the UK, as the gap between demand and supply of housing continues to widen, the need to build more homes is growing. With savings in material waste, energy and CO₂ emissions, AM presents significant benefits for the construction sector, which will be closely watching developments in Eindhoven. Recent research suggests that, far from being a here-today-gone-tomorrow fad, AM is set to transform the future of building for good:

 “The adoption of AM as an advanced technology appears to have a secure place in the future of construction, one that will most likely be unbeatable when it comes to, amongst others: shorten localised value chains and production expenses, increase resource efficiency and environmental sustainability by the inclusion of recycled materials and cutting on transportation costs.”


For further examples of innovative housing, take a look at our previous blog posts:

Build to rent: opening up opportunities for supply in the private rented sector

Anyone with any experience of the private rented sector (PRS) will tell you that it is a complex entity. Disjointed, difficult to regulate and control, but for many, an essential part of the housing market.

Despite the many criticisms often levelled at the private rented sector, demand is high – so high that in many areas it is outstripping supply. If you consider that the market in Scotland alone has grown by over a third since 1999 that will give you an idea of the scale of growth across the whole of the UK.

It has been suggested that this rise in demand for PRS properties has been driven in part by falling numbers of accessible social housing, and increasing numbers of people forced to rent in the private sector as they are unable to afford a deposit for a mortgage. The irony in many instances is that this group – largely segmented in customer profiles as “young professionals”, usually graduates with a reasonable wage – would probably be able to afford repayments on a mortgage but whether for the convenience and flexibility of renting, or lack of ability to save for a deposit (which in many areas of the UK are painfully high) they live in private rent housing.

The growth in the build-to-rent market

One of the emerging markets within the PRS, which has been popular for a few years now in cities in the USA, is the build to rent market and it is being heralded as (part of) the solution to the supply-demand challenge in the UK’s PRS.

Build to rent in principle involves an investor – usually a large multinational like Legal and General or Shell – putting up the money to build a complex, usually of self-contained studio, one or two-bedroom flats (although increasingly the model is being applied to suburban “family” homes too). There is usually also a communal space, where people living in the complex can come to meet one another, or perhaps work if they are able to work flexibly from home. There is also usually a shared kitchen area, as well as facilities like gyms, and even cinemas. These commercial landlords provide attrractive, and based on current models, high-end accommodation which often most suits the needs of the “young professional” market.

A solution to a social as well as a housing conundrum

Those who support the build to rent model within the PRS highlight that it has wider benefits than simply providing more accommodation in an increasingly stretched market. They also stress the benefits of the social aspect it can provide to residents, as well as facilities which enable flexible working and spaces which promote healthy living such as onsite gyms.

However, others criticise the projects on a number of fronts. Some are concerned that the projects could encourage gentrification of an area. With rents often being as much as a small mortgage, they are, critics argue, aimed at a market who are choosing to rent, either while they save for a house, or because the flexibility of renting suits their lifestyle, allowing them to be closer to jobs for example. They stress that those who are already being exploited by the PRS will see little to no benefit from these developments, which could potentially price them out of existing areas.

Supporters counter this by saying that these developments are aimed at a specific area of the market, and that actually introducing more mid-market renting accommodation may free up cheaper accommodation for lower income renters. Critics also question the benefit to the wider housing market, suggesting that while it looks good on the surface, in practice, build to rent is not going to solve the housing crisis.

How do we make it appealing to local authorities?

In Scotland, certainly, build to rent is in its infancy, with no specific build to rent projects in operation currently, although there are a number of planning applications in process, and some retrofitted buildings, previously derelict and remodelled to fit the build to rent spec. Meanwhile, there are a number of projects in the pipeline in England, where the model has already taken off in a number of locations, including London and Manchester.

However, it appears that in many instances, local authorities are cautious, and even at times reluctant to support build to rent projects, in part because of uncertainty about the schemes. In addition, a lack of support for the model, particularly among traditional planners is making them reluctant to bring build to rent projects forward. It is up to those within the sector to persuade sceptical local authorities that build to rent can work in a number of different settings, and does not just suit a young professional market in an inner city (although that is its current demographic target).

The future of build to rent

The housing sector is reliant on all areas of it functioning properly, and this includes the private rented sector. While build to rent is not being proclaimed as a panacea for the housing crisis in the UK, it can for many be a useful option within the PRS. How it will be utilised, and the potential impact on the PRS in the UK remains to be seen.


If you are interested in this topic, you may also be interested in the following blog posts:

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Rent pressure zones

In December 2017 the Scottish Government passed legislation (Private Housing (Tenancies) (Scotland) Act 2016) which introduced a raft of measures relating to the private rented sector in Scotland, hoping to tackle issues such as supply, security and tenant rights. One of the headline policies from this piece of legislation was the introduction of Rent Pressure Zones (RPZ’s). The scheme allows local authorities to apply for areas to be designated as Rent Pressure Zones, limiting the ability of private sector landlords in the area to raise rents above a set level. The idea is to use rent control to ensure the market within a particular area remains stable; demand for social housing should not be put under increasing pressure as a result of tenants being priced out of the private rented sector by rising rents.

What’s happened in Ireland?

In the Republic of Ireland, legislation similar to that of Scotland was enacted in 2016. This included measures to introduce RPZ’s to 21 administrative electoral areas, including Dublin and Cork. In these areas, similarly to the Scottish model, landlords can impose a maximum rent increase on existing tenants, but issues with enforcement have proved challenging.  One of the major challenges local housing charity workers are reporting is the termination of contracts of existing tenants, so that landlords can bring in new tenants who they would then be able to charge more, because they are exempt from the terms of the RPZ’s.

Local authorities making a good case is vital

As was mentioned earlier, the responsibility of applying to have an area designated as a rent pressure zone falls on local authorities. One of the consistent challenges raised by academics, researchers, and those working elsewhere within the sector is the lack of data, or at least the lack of detailed, robust, quality data on which applications to designate an area and RPZ can be based. It has been suggested that in order to better support local authorities to make good applications, (which are likely to be accepted) the quality and accessibility of data available to local authorities must be addressed.

Supporting local authorities to increase supply of affordable housing is also important in high rent areas to allow all areas of the housing market to function effectively. Driving quality and affordability in one sector, it is hoped will drive up quality and standards in others to give people access to affordable quality homes in areas in which they actually want to live.

But will rent controls work?

Research conducted by academics on behalf of Shelter sought to review the use of rent controls across Europe. It shows a number of different models and how they have been adapted to reflect changes in the market. The term ‘rent regulation’ is commonly applied across Europe to refer to measures which seek to limit ‘in-tenancy’ rent increases, whilst leaving the rents for new tenancies free to find their place within the market. The research highlights the differing fortunes of those who have tried to impose rent controls, through RPZs and other means. Some have found it has had the desired impact, ensuring rent rates remain manageable for people living in an area. However, in addition to the Republic of Ireland, others have found challenges with implementation and enforcement.

Final thoughts

It will take time for this policy to bed in in Scotland, and for local authorities, government and the PRS to fully understand the impact it will have. It may mean that additional legislation may need to be introduced as a regulation method, or that landlords on the whole recognise the wider benefits to them and their sector which increased security can bring. However, the way that this element of the legislation was brought in (many think as a knee- jerk reaction to rising rents in Aberdeen which have now collapsed with the fall in oil prices) has meant that it has not been especially well thought out and the practicalities of its implementation on the ground have not been fully considered. Its long-term impact on the PRS, and on rent in areas more generally will be seen in the coming years. The rest of the UK will be watching intently to see how the Scottish project works. Ultimately, it could be replicated, particularly in large urban centres in England, including London, Manchester and Birmingham.


If you are interested in this topic, you may also be interested in the following blog posts:

The private rented sector: meeting demand and improving data

A mixed reception for Labour’s housing green paper

Released with nowhere to go: housing solutions for prisoners

Follow us on Twitter to see what is interesting our research team.