Ministerial Foreword
In 2001 the Scottish Parliament introduced comprehensive changes to social housing in Scotland and, in doing so, responded to particular pressures that the Right to Buy was placing on that sector. Among a wide range of measures, the Housing (Scotland) Act 2001 changed fundamentally the shape of the Right to Buy in Scotland. The legislation acknowledged that there remained many people who wished to buy their homes and continue to live among their communities, but recognised that a better balance was required between the needs of the community and the benefits which individual tenants received from discounts.
The legislation lowered and capped the available discounts for new or transferring tenants and introduced a longer qualifying period - measures that are intended to achieve a comfortable balance between individual and community. It was felt that this 'modernised' Right to Buy should not be imposed upon existing tenants, who were permitted to retain their previous rights. Thus, we have seen a marked divergence in the rights of tenants during the last five years and strong indications that the pattern of tenants exercising their rights is altering.
This report is a requirement of the 2001 Act and is intended to gauge the cumulative effect of the Right to Buy in Scotland, including the impact of the measures introduced through that Act. However, as the report will make clear, the full impact of those revised measures has yet to be seen. This is largely due to the introduction of a five year qualifying period which means that (with a few minor exceptions) the first tenants with the modernised Right to Buy will not become eligible to purchase their homes until September 2007. Only after that date will we be able to make an accurate assessment of how attractive the modernised terms are to prospective purchasers and whether the correct balance has been struck.
In the quarter century that has elapsed since its introduction, the Right to Buy has had a major influence on the shape of housing in Scotland. In particular, a higher proportion of people now own their homes than ever before and this - at least in part - can be attributed to the Right to Buy. This report examines in some detail the full effect of the Right to Buy in Scotland, looking at its impact on the social rented sector today as well as on the homes that moved out of the sector and the owners who now live in them. For all the controversy that has surrounded this policy, the evidence suggests that it has been a major influence in shaping our housing and communities. This report is to be welcomed for presenting that evidence clearly and objectively, possibly for the first time in a purely Scottish context.
I understand the range of views expressed about the continued existence of the Right to Buy and, while I can appreciate that many people want to see further changes, I think there are already a number of tools which can be used to shape the effects of the Right to Buy at the local level. A section of the report is devoted to examining the impact of the pressured area mechanism. This important measure was introduced in the 2001 Act and has the effect of suspending Right to Buy sales for modernised tenancies in designated areas for up to five years at a time. Six local authorities already have designations in place, and I am aware of several others which are actively considering making applications. It is a difficult decision for local authorities to consider suspending an entitlement from tenants in their area, but research commissioned to capture the views of tenants suggests that there is a strong understanding that sometimes the housing needs of the wider community must prevail. The evidence in this report points towards a growing role for the pressured area mechanism as an effective response to particular housing needs.
Of course pressured areas cannot themselves add to social landlords' housing stock. However, new building programmes can make a substantial difference to communities in need of increased levels of affordable housing. The Executive's affordable housing programme is currently seeing record levels of investment - some £1.2 billion from 2005 to 2008 - and delivering 21,500 new affordable homes, many in rural areas. With our specific commitment to finance 16,500 new homes for affordable rent in the current spending period, I believe that we are demonstrating through our actions our confidence in the future of the social rented sector.
This report has no pretensions to be a review of the Right to Buy. I hope, however, that by providing a much needed objective overview of the evidence of the effects of the policy in practice it will be an invaluable source of reference and will contribute to well-informed debate. I hope that this report can commend wide support.
Malcolm Chisholm, MSP
Minister for Communities