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.

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How empowering the community can help us create better places to live

Places can be defined in a lot of different ways: the geographic location, the physical buildings, the people who live there and the relationships that are formed. Central to places should be the people who live and interact there. Putting people, and communities at the heart of placemaking can benefit the physical infrastructure of a place, by identifying what is needed. And allowing residents a say in their local area can also give communities a sense of empowerment and ownership of their place, somewhere they can be proud to call home and somewhere they feel safe, included and valued.

Can places empower people?

In short… YES! Positive places have the power to lift the community up, give them a sense of empowerment, worth and inspiration. But places also have the power to alienate and dis-empower.

Places which are run down, with no or low levels of community engagement can contribute to communities becoming disparate, isolated and can reinforce negative stereotypes, particularly those which relate to poverty, deprivation and social exclusion. Making places that are thriving hubs for communities to be built upon can have a significant impact on the experiences and quality of life for communities living within them. Work being done by organisations like SURF show how important effective regeneration projects can be in revitalising places and the people who live there.

A recent RTPI blog post emphasised the importance of place on helping to reduce the impact of poverty and break some of the more significant socioeconomic barriers marginalised groups within communities can face. It emphasises the importance of place-based urban policy and how core policy features like the planning of a space or the design of a building can actually have a significant impact on the people who interact with that space.

A national standard for community empowerment

As important as the physical space are the people who live and work within it.

In the policy context of the Community Empowerment (Scotland) Act 2015, What Works Scotland, along with others drafted a set of ‘fit for purpose’ national standards for community empowerment, to build on those published in 2005. It was hoped that the new standards would provide clarity and focus on ways to help strengthen and improve participation and engagement at a local level. There are seven standards: Inclusion; Support; Planning; Working Together; Methods; Communication; and Impact.

Identifying and making the most of community assets

Asset based development was originally created as a description of how local residents grow collective efficacy and what they use to do so. It involves paying attention to what is in a local place – not what we think should be there, or what is not there. These ‘assets’ are found within a community and can be physical, such as infrastructure, but can also be the skills and knowledge of local people.

The key concept centres on the fact that everyone has something positive that they can contribute to a community. It follows that, if everyone does or is given the opportunity to contribute positively to their community, then there will be less requirement for spending on services from local government. It can also mean greater accountability at a community level for making changes that actually impact positively and directly on the lives and experiences of people who live and work there. Taking time to identify these assets and feeding this into how places are created can be a key part of ensuring communities feel empowered and valued.

Community anchors are an important tool

Community anchors have been identified as vital in many instances to ensure the continued development and capacity building of communities within a place. Their roles can extend across the community from building capacity and resilience, to supporting local democracy and helping to drive social change within a community. Community anchors play an important role in empowering communities and getting them involved in the design and delivery of services in their area.

A report published by What Works Scotland in 2018 examines the developing roles of community anchors within communities. The report explores the developing discussions between the community sector, public services and policymakers and considers how they might work more closely together to deliver bespoke and localised community driven policies.

Summing up

Empowering communities to feel valued and engaged is a key part of developing places that are inclusive and enjoyable places for people to live. Promoting communities as key agents of change within the areas in which they live not only improves the community, but can also help on an individual level, fostering a sense of pride and value. Creating better places is a key strand to regeneration and planning policy. Putting communities at the heart of creating places will ensure that places not only meet the needs of local people but are inherently connected to them.


If you enjoyed this article you may also be interested in:

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Making social mobility a reality: the Robertson Trust’s Journey to Success programme

The Sutton Trust, which works to combat educational inequality, has described low social mobility as the biggest social challenge of our times:

“The income gap between the richest and poorest in society continues to widen, while education opportunities remain overwhelmingly dominated by children from the most privileged homes.”

Education can make all the difference for people struggling to improve their lives. But young people from many disadvantaged areas who might see college or university as an escape route from low income employment are encountering significant barriers to education. And location can aggravate the problem. The Social Mobility Commission’s 2017 report found that just 10% of disadvantaged teenagers from Barnsley, Hastings and Eastbourne make it to university, while the figure for Kensington and Chelsea is 50%.

In Scotland, a 2015 Sutton Trust report on widening access to education found that, despite offering free tuition, the country had the worst record in the UK when it comes to getting students from poorer backgrounds into university. The report noted that:

“…despite improvements, young disadvantaged Scottish people are four times less likely to go to university than their wealthier counterparts. In England the same figure is 2.4, while in Wales and Northern Ireland, poorer students are three times more likely to do so.”

The Scottish Government claims that the situation is now improving. In March, Scotland’s higher education minister, Shirley-Anne Somerville reported a 13% increase in the number of Scots from the most deprived  communities getting places to study at a Scottish university:

“That means over 600 additional people from the most deprived communities being accepted to study at university.”

 The Robertson Trust: a journey to success

One organisation trying to overcome the barriers facing disadvantaged young people is the Robertson Trust. The trust is Scotland’s largest independent funder, awarding over £16m per year to Scottish charities. Its four main objectives are:

  • improving outcomes for individuals and communities
  • improving capacity of third sector organisations to deliver impact to their beneficiaries
  • building and using evidence to inform policy and practice
  • developing greater understanding of the trust’s role as a funder

Since 1992, the Robertson Trust has provided scholarships, bursary awards and grants to individuals, and has been working with colleges and universities to remove barriers to participation in education.

More recently, the trust has developed a dedicated training and mentoring programme called Journey to Success. The programme supports over 600 higher education students at any one time with a bursary and personal development programme.

Students are nominated by their school or university for a place on the programme, and each year around 160 students join the Journey to Success. Once accepted, students receive a bursary of £4000 a year (£2,800 if they live at home). But the bursary is just the start of a long-term support programme that includes the development of skills to support students in their future careers. This is achieved through residential weekends, university workshops, internships and mentoring.

The Journey to Success programme also supports students in undertaking volunteering placements and in providing funding for self-development awards in particular activities Recent examples include working on a hospital ship on Lake Tanzania and developing British Sign Language (BSL) signs for scientific terms.

Making social mobility work

The Journey to Success programme is living up to its name. In 2015/16, 88% of the programme’s graduates received a degree classification of 2:1 or above, and most go on to employment in a graduate job or further study.

Clearly, the programme can only support a fraction of the young people who have the ability but not the means to further their education. But its success demonstrates the benefits of giving social mobility a helping hand.

As Gordon Hunt, the Robertson Trust’s Head of Scholarship explains:

“…the aim of the Journey to Success programme “is to give students from disadvantaged backgrounds the support and guidance that will help them to overcome the barriers they face in fulfilling their potential.”


You may also be interested in reading some of our previous blog posts on the subject of social mobility:

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Tackling health inequalities: what does the data tell us and how can it help?

Health inequalities in Scotland are significant. Every year we hear about how Scotland has some of the biggest gaps in the health and wellbeing of the poorest and richest in society. In some cases, Scotland has the largest gaps in equality in the whole of Europe. And in many instances, they are rising. Scotland also has the lowest life expectancy of all UK countries.

A number of studies and research projects have been commissioned to try to identify the key indicators and factors that are creating and reinforcing these inequalities, and what sorts of interventions would work best to try and reduce or eradicate them altogether. It is hoped that by conducting research, and compiling data, policymakers can use this to identify groups and geographic areas where health inequalities are significant, and to intervene to reduce them, with data to help back up and evaluate the effectiveness of these interventions. In Scotland, work is being done by a number of organisations including the Scottish Government, Glasgow Centre for Population Health (GCPH) and Public Health Innovation Network Scotland (PHINS).

What indicators and factors are being measured?

Income inequality has a related impact on health inequalities, and the scale of low pay is significant. The relationship between health inequalities, poverty and household income is one which has been explored at length and is often highlighted as one of the main factors which influences health inequalities. Studies which look at income, and also at relative levels of deprivation can provide useful comparison points, with comparable datasets on employment status and income readily available at a national and local level. Data also considers trends over time, comparing pre- and post-economic crash data, as well as relative earnings and expenditure relative to inflation and the rising cost of living. Other factors include age (those under 25 and earning a lower minimum wage for example) and by gender, with more women in lower paid, lower skilled and part time or insecure work.

How usable is the research being created?

The research which examines health inequalities explores a whole range of interrelated factors, and highlights just how complex the landscape of inequalities is. Creating a clear and holistic picture of all of the factors which contribute to health inequalities is not easy. Many studies, while detailed and effective, are niche, and focus on a very limited number of factors across a limited demographic source. As a result, questions have been raised about the utility of this research and its applicability and scalability at a national level. In an attempt to tackle this, combined data sets are being produced which provide opportunities for comparison across data from a range of studies.

The “Triple I” tool from NHS Health Scotland is designed to help policy designers to create effective interventions to reduce health inequalities. A second edition of the tool is due to be released in 2018/19. Triple I aims to provide national and local decision makers with practical tools and interpreted research findings about investing in interventions to reduce health inequalities in Scotland. It does this by modelling the potential impact of different interventions and policies on overall population health and health inequalities.

 

What can be done to act on the data?

While the research being produced is high quality, and thorough in relation to findings, the real question is what can actually be done with the research, and what steps can policymakers and practitioners take to use the findings to inform their own practice.

There are, researchers suggest, significant opportunities presented by the recent research which has been done on income inequality. In particular, they cite the public sector and public sector pay as a key way to reduce the income, and therefore the inequality gap, particularly among higher earners and those who would be considered “working poor” or “just about managing”. In Scotland, significantly more people are employed in the public sector than in any other part of the UK, and there is, researchers suggest, an opportunity to better align and increase low wages to help to reduce the gap.

The adoption of new initiatives, such as the “housing first model”, which is due to be rolled out in Glasgow to help homeless people break the cycle of homelessness, are also opportunities not only to address inequalities, but to ensure that long term help and support is in place to prevent any relapse into chaotic or risky behaviour. In relation to housing first, the savings on front line services such as emergency admissions to hospital, or contact with the police after committing a crime are significant, and while more in depth research is needed to create a full cost benefit analysis model of the scheme and its effectiveness, early studies show that the impact on health and wellbeing on those who had previously been homeless is huge in terms of reducing inequalities and improving wellbeing. However further data on homelessness in Scotland shows how far we have to go, and that housing first is only one mechanism which can be used to begin this process of reducing inequalities among the most and least deprived communities in Scotland.

Alternatively, some have suggested a more radical overhaul of how we distribute welfare and wealth within the country. Research has been coming thick and fast on the subject of a “citizens basic income”, particularly following the trial which was rolled out in Finland (the findings of which have not yet been published). Research on how this could impact on inequalities is not widespread yet, as pilots have been small scale, However, it is suggested that a total overhaul of welfare, replacing it instead with a citizen’s basic income would be a more effective way to reduce inequalities across the board, including in health.

Summing up

Health inequalities are significant in Scotland. Much of the research focuses on the impact of deprivation, poverty and low income on health inequalities and how, in order to tackle health inequalities in Scotland we must also tackle some of the other significant social problems within our communities, including low income and insecure work, and the impact of homelessness or chaotic lifestyles on health.

Data can be used in a number of ways to help inform policy decisions, some more radical than others. But creating a complete understanding of inequality in Scotland is challenging. It is up to researchers and policymakers to work together to create a better understanding of the conditions and factors which contribute to inequality, and what can be done to help tackle systemic and entrenched inequalities in our communities through policy levers and evidence based policy making.

If you liked this article you may also be interested in:

Universal basic income: too good to be true?

A world of evidence … but can we trust that it is any good?

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Five current challenges facing Further Education

As well as developing the careers of school-leavers and adults and contributing to the economy, further education (FE) also plays a crucial, but unsung role in our daily lives. As one college chief executive has observed:

“Over the past 25 years, we have quietly gone about our work producing the people that matter most to our communities – those that build our houses, fix our boilers, our computers and our cars, care for our children and our parents, ensure the planes that take us on holiday are safe and look after us when we get to our destination, cook our special meals, entertain us live and on TV, enrich our lives with their art, cut our hair and make us even more beautiful!”

But now the sector is facing key challenges that are likely to change the face of further education in the years ahead.

  1. Policy reforms

According to the Institute for Government (IfG), since the 1980s there have been:

  • 28 major pieces of legislation related to vocational, FE and skills training
  • Six different ministerial departments with overall responsibility for education
  • 48 secretaries of state with relevant responsibilities

The FE sector has proved to be resilient and adaptable to these changes, but many believe this instability has left the sector unfit for purpose.  In 2016, the Sainsbury review of technical education recommended changes to England’s FE system to make it less complex. These were taken up by the government, which introduced a new Post-16 Skills Plan. The reforms will replace thousands of qualifications with fifteen new technical education pathways. The new ‘T-Levels’, in subjects such as construction, childcare and hairdressing, will be rolled out by 2022.

It’s too early to say what effect the reforms will have, but some already have misgivings. A senior civil servant at the Department for Education has advised deferring the start date for T-Levels, while the shadow education secretary Angela Rayner argued the changes would not make up for “years of cuts” to the FE sector.

  1. Funding pressures

The Social Market Foundation reported in 2017 that, since 2010, the adult skills budget in England has fallen in cash terms. “Alongside this reduction, the Institute for Fiscal studies (IFS) has shown that 16–18 education spending has reduced.”

Funding pressures on FE are likely to continue. In August, the Treasury instructed Whitehall departments with non-protected budgets, including FE,  to identify areas of “potential savings”. David Hughes, chief executive of the Association of Colleges, said “The news that the chancellor may be looking for further funding cuts from unprotected departmental budgets is very worrying for colleges. College students and staff have already taken on too much pain from the funding cuts in further education over the last decade.”

The government has announced a review of post-18 education funding, including further education. The review will be supported by an independent panel, led by Philip Augar, and is expected to conclude in early 2019.

  1. New apprenticeships

The apprenticeship levy was introduced on 6 April 2017. It requires all UK employers with a wages bill of over £3 million per year to invest 0.5% of their bill into apprenticeships.

Once they start making payments, employers can access the funds through a Digital Apprenticeship Service (DAS) account that allows them to pay for apprentice training, choose the training provider they want to provide the training, and find apprentices for their vacancies. Initially, this service is only available to those employers paying the levy. However, the government aims to extend access to all employers by 2020.

In May 2018, the Reform think tank published an assessment of the apprenticeship levy’s impact in its first year of operation. The report found that in the six months after the levy was introduced, the number of people starting an apprenticeship was 162,400 – over 40% lower than the same period in the previous year. Concerns about the levy were heightened in May 2018 with official figures revealing a 40% drop in apprentice starts across all industries in February, compared with the previous year. The statistics prompted further calls for reform of the levy. However, the Learning and Work Institute (L&WI) has argued that it is still too soon to judge the new system.

  1. Devolving FE

Central government continues to control FE funding, but local authorities and Combined Authorities are pressing for greater devolution of the adult skills budget. City mayors are also showing interest in bringing more of FE and skills under local control.

At the same time, the FE sectors in, Wales, Northern Ireland and Scotland have been experiencing their own challenges:

  • College funding in Wales has remained tight over the last few years, but a 2017 report from Colleges Wales highlighted the economic impact of FE in Wales. It reported a return of £7.90 for every £1 spent, an average annual return on investment of 24%.
  • A report by Viewforth Consulting report estimated that the FE sector generated over £524 million of output in Northern Ireland from college and student off-campus expenditure. A new further education strategy was launched in 2016, but the collapse of the Northern Ireland Assembly has presented the FE sector with additional uncertainties.
  • Between 2012 and 2014, 25 colleges in Scotland merged to create ten new regional ‘super colleges’ under a Scottish Government programme to make the sector more efficient and ‘responsive to the needs of students and local economies’. According to the Scottish Funding Council, the merger programme cost £72m, but delivered annual savings of more than £52m. However, Audit Scotland’s 2017 review of further education in Scotland found that student numbers at Scotland’s colleges fell to the lowest level for almost a decade. Performance figures on Scotland’s colleges published by the Scottish Funding Council (SFC) in February 2018 show that the success rate in almost two-thirds of Scottish colleges has dropped.
  1. The future

It’s clear that funding issues and policy changes will continue to affect FE in the UK. But other challenges are also looming.

The Social Market Foundation has highlighted market developments likely to present competitive threats to the FE sector. These include more employers moving in to provide training traditionally delivered by the FE sector, and the advance of educational technology, encouraging more learners to self-direct.

As for Brexit, the Association of Colleges believes the impact of the UK leaving the European Union may be less in FE than in other areas of national life,  but forecasts that Brexit has the potential to bring big changes to the demand for skills and training.


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Scottish Planning and Environmental Law conference is a ‘huge success’

SPEL Conference 2018 banner

Last week, we welcomed delegates and speakers to the 2018 Scottish Planning and Environmental Law (SPEL) conference in Edinburgh, sponsored by Terra Firma Chambers.

Delegates and speakers came from organisations across Scotland to discuss and debate the current state and future opportunities for planning and environmental law in Scotland.

Should we just scrap planning altogether?

The conference was kicked off in typically thought provoking style by Greg Lloyd, Professor Emeritus at Ulster University, and visiting professor at Wageningen University in the Netherlands. Professor Lloyd delivered this year’s keynote and took the opportunity to challenge delegates and other speakers to consider what might happen if the current planning system were to be abolished altogether, to clear the way for a new and more fit-for-purpose planning system.

The creation of a new way of planning has, Professor Lloyd argued, the potential to better align community needs and other areas of policy like land and taxation, as well as creating opportunities for a more functional system, not as bogged down in process, where communities can come together to help make decisions about planning in their local area.

This “utopian vision of the future of planning” could potentially allow planning to ‘catch up’ with other services given that currently it is a 1950s model which has been shaped and adapted to allow us to “get by” rather than being reformed to suit new and changing planning needs. This new way, he argued, could be achieved if we are bold enough to take the leap away from the constraints and barriers presented by the “old” system.

Community empowerment and community right to buy: what are the implications for planning law?

Mark Lazarowicz and Pippa Robertson from Terra Firma Chambers and Aurora Planning respectively, navigated delegates through the complex waters of community right-to-buy, with Mark setting the scene and outlining some of the key elements to legislation and policy which have helped to shape community empowerment, including discussions around “relevant authorities”; “subjects of transfer”; and the “activation and implementation of community right-to-buy”. Pippa followed this with a discussion around community empowerment in relation to right-to-buy, and how this can be used to bring land back into active use.

The Planning Bill and funding infrastructure

Archie Rintoul, former chief valuer in Scotland, gave what many found to be a frank and insightful discussion of the issues around infrastructure development. Continuing on a similar theme after lunch, Russell Henderson from RPS explored the role of transport policy, and in particular sustainable transport. In both sessions there was further discussion of the importance of facilitating and accommodating new infrastructure, while recognising the growing responsibility to be aware of environmental factors, in part through the development of sustainable development measures for transport.

Following Russell, Laura Tainsh from Davidson Chalmers outlined the basis for, and the potential implications of, the Landfill Tax Ban, including an exploration of what the Bill may mean for those who work within the waste sector, and the potentially significant environmental impacts that the landfill ban may have when it is introduced in 2021.

The conference also included timely discussion of the progress of the Planning Bill and case law updates from Terra Firma, informing delegates of the latest developments in recent key cases.

Planning’s role in promoting inclusive economic growth

The conference was closed by RSA Scotland’s Lesley Martin who discussed how planning can help to promote inclusive economic growth. She questioned how the implementation and translation of the planning bill into practice will impact on inclusive growth in towns and cities.

Economic growth within places, she argued, can be driven through effective planning, and inclusive planning processes can in turn help to create inclusive economic growth. The planning bill is, she suggested, a symbol and an opportunity to provide an ambitious statement of the potential of wiser policy approaches. Planning is not merely about controlling or enabling development – it is an example of how the way we think and behave more generally impacts on inclusive growth in our towns and cities.

Summing up

This year’s SPEL conference sought to explore some of the wider implications of the Planning Bill for Scottish planning and the environment. By covering a range of topics the conference sought to highlight some of the key challenges and implications that the Bill may pose to the profession and to practice. The speakers were brought together to provide a range of perspectives and to help frame these issues for delegates and raise points for discussion and debate – and there was certainly plenty of that!

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


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

We also blog regularly on planning and environmental issues … why not read one of our other recent articles:

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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Public transport: lessons from our Nordic neighbours

Public transport is a vital element in the lives of many people. Commuters rely on bus, train, tram and metro services to get them to and from work. Public transport is also crucial for those without cars who need to access education, training, health and social care services.

The state of UK public transport

Recent research by the Urban Transport Group (UTG) has reported important trends in public transport England. Among the findings:

  • Buses remain the most used form of public transport, but service levels and usage have been in decline.
  • There has been rapid growth in rail passenger numbers over the last decade.
  • Patronage on Light Rail systems in England has seen an increase of 44% since 2007/08.

Elsewhere in the UK, there’s a mixed picture on the state of public transport:

  • New legislation introduced by the Scottish Government aims to halt the decline in bus use in Scotland, where passenger numbers fell by 10% over five years. Meanwhile, the rail regulator has demanded improvements to the punctuality of trains in Scotland.
  • Wales has seen a steady decline in bus usage in recent years, although over the same period passenger numbers on trains have increased.
  • Translink, which provides public transport in Northern Ireland has reported that trips by fare-paying passengers increased for the second year in a row, with rail passenger numbers reaching their highest level in 50 years.

Overall, rail passenger numbers in the UK are rising, although the recent disruption to services in the south east and the north of England following timetable changes underlined ongoing dissatisfaction with the standards of service from rail companies. Meanwhile, Britain’s bus network continues to shrink, especially on local routes.

Lessons from Scandinavia

When it comes to public transport, it’s often enlightening to look at how other countries manage. A recent UTG report explored how transport authorities in Sweden, Denmark and Norway are using devolved powers to transform public transport for the better. The report, written by Professor Tom Rye, from the Transport Research Institute at Edinburgh Napier University, considered various aspects of public transport, including service levels, fares, technological innovations, environmental impact and franchising.

Service levels

The report found that, in comparison with the equivalent city regions in the UK (outside of London), service levels in the Nordic countries are higher, particularly during off-peak times. In rural and low-density suburban areas, a higher level of service is provided since there is an element of cross-subsidy between revenue-generating and loss-making routes. By contrast, in the UK bus deregulation does not allow for comparable levels of cross-subsidy.

Fares

In Scandinavia, as in many other parts of continental Europe, fares are zonal and multi-modal. Passengers can travel on the same ticket by rail, bus, light rail, and in some cities on urban ferries. Journeys are paid for on a stored value or season ticket smartcard. The research found that, in comparison to incomes, fares for frequent users in Scandinavian cities are similar to those in the UK, but season tickets often cover wider geographical areas.

Technological innovations

The report provides examples of significant innovation on vehicle technologies, including smart ticketing. In Norway fares are increasingly supplied as mobile tickets.

Environmental impact

The research found that the Scandinavian countries have ambitious plans for public transport’s role in reducing carbon and toxic emissions. These include low or zero emission bus fleets and modal shifts from other transport modes. Copenhagen’s metro and suburban rail services are a key part of the city’s plan to be the first in the world to be CO2 free by 2025. There will be no diesel-powered buses in Oslo by 2020, and in Sweden Skåne’s bus fleet will run on fossil-free fuel by the same year.

Franchising

Public transport strategies in Norway, Sweden and Denmark are aligned with wider national and sub-national goals for economic development, land use planning and social cohesion. Levels of revenue support for bus services underpin a high quality of service, and levels of public transport use are high (although in Denmark, heavy investment in cycling infrastructure means public transport usage is relatively low).

One of the key features of public transport in Scandinavia is that virtually all bus services have been franchised. Metro and tram services are also provided either through franchising or by the incumbent municipal operator.The report notes that the main impact of franchising of bus services in all three countries has been to reduce costs and increase quality. The authors note that:

“…franchising in these countries and regions gives public sector Passenger Transport Authorities the direct ability to improve aspects of service because they specify and purchase that service from private sector operators. Thus, if they have the resources and are willing to pay for improvements, these can be delivered rapidly, to deliver on policy ambitions.” 

The Scandinavian way

Even as local, devolved and national governments are trying to encourage greater use of public transport, the evidence suggests that in a significant number of British cities – including Glasgow, Birmingham, Bristol, Leeds and Sheffield, the number of people travelling by public transport is falling.

The UTG report suggests that the Nordic model provides a road map for improvement in the way that UK transport service providers currently deliver urban public transport:

“Scandinavian countries have taken this approach because there is a political and public consensus that public transport is a public service. A public service that has a key role to play in tackling road congestion, reducing greenhouse gases and air pollution. A public service that also spreads the benefits of economic growth and promotes social cohesion through ensuring better connectivity within and between communities – including linking peripheral areas with the main towns and cities that are driving the wider economy.”


Read more of our public transport blog posts:

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

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