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MAINTAINING HOUSES - PRESERVING HOMES: A REPORT ON RESPONSES TO THE CONSULTATION
EXECUTIVE SUMMARY
INTRODUCTION
1. This report presents the findings to emerge from a major consultation exercise conducted by the Scottish Executive on the legislative proposals for reforming private sector housing in Scotland.
2. In July 2004 the Scottish Executive published a consultation pack entitled "Maintaining Houses - Preserving Homes". This sought views on a number of proposals which are based on the principle that individuals should be responsible for maintaining their homes, but that there should be support available where this is needed. The proposals also look at the powers available to local authorities to respond to the changing housing context, both where this impacts on individual houses and on the wider area. While a major focus is on owners, the Scottish Executive also wants to strengthen the rights of private sector tenants.
The consultation Process
Written Responses
3. The consultation pack was published on 22nd July 2004 and was distributed to a wide range of organisations and networks including voluntary organisations, business organisations and local authorities. The consultation pack was also published on the Scottish Executive's web site and a web based version of the questionnaire was made available to interested parties who wished to respond online.
4. The closing date for receipt of written or online responses was Friday 29 th October 2004. By this date, 314 completed responses had been received. 129 of these submissions came from individuals, representing 41% of the total responses received. 169 came from a wide range of organisations representing 54% of respondents. Organisations who submitted responses are listed in Appendix 3 to this report. 16 responses were received where the identity of the respondent was not disclosed and they declined to say whether they were an individual or representative of an organisation. All 314 of these submissions have been analysed in preparing this report, however, only 290 submissions were included in the quantitative analysis, as having specifically answered one or more of the set questions.
5. The majority of questions were closed questions to which respondents were invited to comment. Many respondents chose to simply respond yes or no to each question. Others submitted detailed and sometimes lengthy free text responses.
description of analysis methods
6. The analysis of the consultation responses involved a combination of qualitative and quantitative methods. The quantitative analysis aims to show the proportion of respondents that were supportive, or otherwise of the suggestions made in the consultation document. It gives a basic overview of the majority of issues raised in response to each question, and an indication of the levels of support for some of the suggestions the consultation makes. The qualitative analysis aims to capture in more detail the concerns and issues raised by respondents, and the reasoning behind their views.
key findings
Dealing with Defects and Disrepair
7. Just over 92% of respondents agreed that the proposed single statutory notice is the correct way forward, and provides an opportunity to address weaknesses in the current range of statutory notices. However, a number of local authorities raised concerns about the additional resources that would be required.
8. Support for local authorities being able to take out maintenance order against a property or group of properties was high (92%). However, many respondents were also concerned to ensure that, as it represents a significant intervention, its use should be limited to situations where, for example, the lack of maintenance is impacting on adjoining properties or where it has been necessary to implement repairs in default of property owners.
9. The majority of respondents (80%) agreed that it is reasonable to require a sinking fund to be set up as part of maintenance order requirements. Calls were made for the Scottish Executive to commission and promote a model scheme to help with the implementation of this proposal.
10. Three-quarters of respondents said there should be powers to control occupation of properties subject to statutory notices.
11. Just over 80% agreed that local authorities should be able to suspend a notice and that the suspension should be limited until the property is sold or let. COSLA argued the suspension should not be for an indefinite period, while the City of Edinburgh Council favoured written requests for an extension.
12. Almost nine out of ten respondents (87%) agreed that local authorities should be given power to control occupation where owners cannot be identified. A similar proportion (93%) agreed that local authorities should be able to place a charging order to recover the costs of work and administration where an owner would not contribute their share of costs.
13. A high proportion of those responding (82%) agreed that local authorities should have the power to inspect the insurance policies of persons subject to a single notice. However, some respondents have pointed out this would be limited because not all owners are required to have insurance and others have difficulty in securing it.
The Tolerable Standard
14. The proposed extensions to the Tolerable Standard are seen as the right ones by 82% of respondents. However, there were calls to ensure the "basic" provision of thermal insulation was to an appropriate or adequate standard. There was also a suggestion that a user friendly rating system for thermal insulation should be developed.
15. A number of respondents proposed additions to the Tolerable Standard, including serious disrepair, sound insulation, safe access, gas safety, serious condensation and minimum space standards.
16. Almost all respondents (93%) agreed with the proposal for national guidance on the interpretation of the Tolerable Standard, although some local authorities were concerned this may be too inflexible to reflect local circumstances.
17. The publication of action plans by local authorities on below Tolerable Standard housing in local housing strategies and making the improvement of housing condition and quality a specified purpose was supported by 87% of respondents. However, a number of local authorities felt a separate action plan on below Tolerable Standard housing was over-prescriptive.
Area Renewal
18. The majority of respondents (92%) agreed with the proposals to replace Housing Action Areas with Housing Renewal Areas. Many local authorities saw this as a way of providing greater flexibility in dealing with area based disrepair.
19. The criteria for declaration were agreed by 83% of respondents. There was some concern over the evidence needed to justify market failure, as well as the arbitrary nature of the "50%" rule, especially in mixed tenure estates and rural areas.
20. Almost all respondents (90%) agreed with the proposed procedures for designating Housing Renewal Areas. A similar proportion (92%) supported the proposed powers for local authorities following designation.
Financing and Supporting Repair Works
21. Over three-quarters of respondents (77%) agreed with the range of types of assistance proposed for private owners. Some local authorities specifically welcomed the removal of the statutory requirement to pay grant and the flexibility the new proposal provided to respond to the specific circumstances in their area.
22. Just over one in five respondents (21%) disagreed with the proposal, with the level of disagreement particularly high among groups representing older people or people with disabilities. A major concern voiced by these groups was the introduction of a loan system which may jeopardise householders' chances of receiving grant for making adaptations. They argued that a clear distinction must be drawn between general improvements and repairs for all home owners and essential adaptations for disabled people to enable them to live independently in their own home. There was a call for adaptations funding to be removed from the current proposals.
23. Although most respondents (82%) agreed with the proposed types of assistance, local authorities in particular raised a wide range of issues. Central among these was the need to see grants remaining a major part of the approach for tackling disrepair in the private sector. There was also a concern about the practicalities of local authorities providing financial advice and operating loan schemes.
24. The consultation sought views on whether, apart from adaptations for disabled people and fire precautions, eligible works for financial assistance should be limited to those relevant to the Tolerable Standard and the Scottish Housing Quality Standards. Just over 70% agreed with the proposal, with 29% disagreeing. One of the concerns raised by local authorities was that this "narrow" approach may limit the Council's ability to fund more minor defects which could lead to greater levels of disrepair if left unattended.
25. Just over 80% of respondents agreed that subsidised loan should be available as an alternative to grant. COSLA qualified their support by saying it should only be available to those for whom the market is not an option.
26. Most respondents (82%) agreed that charging orders will be an effective means of releasing capital for carrying out repairs and improvements. Only 15% disagreed.
27. The Council of Mortgage Lenders Scotland (CML Scotland) opposed the use of charging orders. As they would automatically rank before a standard security, this may have serious implications for the security position of mortgage lenders.
28. The majority of respondents (83%) agreed that the Scottish Executive has identified the circumstances in which it would be appropriate to use charging orders, although a number of points were raised over their implementation.
Better Information for Home Buyers
29. Over 70% of respondents to this section of the consultation paper agreed that the Executive should take powers to introduce a single survey with the vast majority of these respondents saying that these should be reserve powers.
30. A substantial minority of respondents (about a quarter in total) said that the issue of a single survey should be left to the market and many of these argued strongly that no action should be taken at least until the results of the current pilot exercise are fully evaluated.
31. Two thirds of respondents said there should be no exemptions to the requirement; however, just under a third (32%) of respondents said that there should be exemptions to the requirement to produce a single survey. These respondents suggested that a number of different categories of property should be exempt. The most frequently mentioned categories of property were right to buy properties (31%) and properties still under a builders warranty (22%).
32. A number of key organisations, including the Royal Institute of Chartered Surveyors in Scotland (RICS Scotland), CML Scotland and the Chartered Institute of Housing (CIH), argued strongly against exempting Right to Buy properties from any legislative provision for a single survey.
33. Eighty-six percent of respondents said that there should be a time limit on single surveys. Of those who agreed that there should be a time limit on these surveys over 60% proposed that the time limit should be six months or less. A further quarter of respondents to this question said that the maximum time limit on the validity of a single survey should be one year.
34. A number of key organisations argued against any statutory time limit being placed on single surveys as the circumstances in which these surveys would be conducted would be extremely diverse and as a result a 'one size fits all' approach to setting time limits would be inappropriate.
35. Nearly a third (32%) of those who responded to the question about enforcement of the single survey proposals suggested that the most appropriate enforcement mechanism was to prohibit a sale. A further 27% of respondents said that a fine would be the most appropriate enforcement mechanism but a significant minority (13%) also said that enforcement should be either voluntary or left to market forces.
36. Nearly two thirds of those who responded to the question about whether or not powers should be taken to require sellers to provide other information, such as that proposed for the Purchasers Information Pack, agreed that these powers should be taken. This included the RICS Scotland which also expressed disappointment that sellers packs were not being piloted alongside the single survey.
37. There was mixed opinion as to whether there should be sanctions applied to the proposed Energy Performance Certificate. Almost two thirds of those respondents who commented upon this question said they thought there should be some form of sanction. The most commonly mentioned sanction was a fine (29% of those responding) followed by the ability to recover the cost of obtaining a certificate from the seller (17%) and prohibiting a sale where no certificate was made available by the seller (17%).
Improving Standards in the Privately Rented Sector
38. The majority of those who responded to this section of the consultation paper agreed with the elements proposed for inclusion in the new modernised Repairing Standard for private landlords. However, a substantial minority of respondents suggested additional elements to be included in the new standard. The most commonly mentioned aspects included, heath and safety requirements, energy saving and noise insulation, external areas and internal decoration.
39. The RICS Scotland suggested that further consideration should be given to including smoke detection and access in the modernised Repairing Standard and COSLA suggested that the Housing Quality standard should apply to all housing tenures and that the standards should reflect the requirements of the Scottish Secure Tenancy provisions in the Housing (Scotland) Act 1987, as amended by the Housing (Scotland) Act 2001.
40. The vast majority (87%) of respondents who responded to this element of the consultation agreed with the proposed range of tenancies to which the new standard would apply. Similarly, the vast majority of respondents (92% of those that responded to the question) agreed that there should be a statutory requirement that all written leases should contain an explicit statement of the private landlords' repairing obligation.
41. The proposal to establish a new Private Rented Housing Tribunal was welcomed by a wide range of respondents including those that represent private landlords.
42. A number of respondents suggested changes that would be required to equip the Rent Assessment Panel and Committees to allow them to deal with their new role effectively. The most frequently mentioned changes were additional or more effective training, more power and funding and greater support from professionals.
43. The majority of respondents were content with the working title "Private Rented Housing Tribunal for Scotland". However, a relatively small minority of respondents suggested that the term "Panel" would be preferable to "Tribunal".
44. The vast majority (88%) of respondents to this section of the consultation said that they agreed that a new legislative framework for Houses in Multiple Occupation was required. A similarly high percentage (80%) agreed with the proposal to repeal Part VIII powers.
45. There was strong support for the proposal to allow tenants with disabilities to carry out adaptations. Support was strongest amongst voluntary organisations but there was also support from local authorities and national bodies, including representatives of private landlords.
46. The Disability Rights Commission made a strong case that the right to make adaptations should be extended to include shared areas e.g. main doors, hallways and stairways which it states is often one of the biggest areas of difficulty for disabled tenants.
47. Nearly two-thirds of those who responded to this section of the consultation paper agreed that it was sensible to consider extending the National Scheme for the Registration of Private Landlords. However, a substantial minority of respondents (36%) said that extending the scheme would place too great a burden on private landlords and local authorities.
Mobile Homes
48. The overwhelming proportion of respondents who commented on the proposals relating to mobile homes agreed with them.
49. Over 90% of those who responded said they agreed with the proposals contained in the consultation paper relating to mobile homes and over 80% of respondents agreed that the proposals, taken together with the existing legislation, would adequately protect mobile homes occupiers.
50. A number of respondents made specific suggestions about extending the proposals relating to mobile home owners and possibly extending the provision to those who rent rather than own mobile homes.
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