Transforming the housing system in Scotland

The David Hume Institute has launched a new project with Professor Duncan Maclennan to consider the actions needed to transform the housing system in Scotland. 

Transforming the housing system is a fairly large statement of intent but given the challenges we face today with the declaration of local and national housing emergencies, rising homelessness, falling supply and increasing unaffordability, the ambition set out in Duncan's remit is both proportionate and necessary. Indeed, given that we have been in a housing crisis since at least the 1980s, the challenge facing this review is to thoughtfully look at the whole housing system and consider the question of what a fixed housing system would look like?

Now, it is easy to set out a menu of policy interventions that we believe are required to improve housing outcomes for a certain client group. We do it all the time, and we all have our biases. This could be a housing and infrastructure agency, market led approaches to affordable housing, rent caps, professionalisation, increased grant levels, or meeting the demand for owner occupation amongst many, many more.

However, the repeated failure of our housing policy over the decades has been looking at it as a tenure or sectoral issue rather than a systemic issue. We can’t ignore the fact that we are part of a wider UK housing sector with social security, monetary and fiscal policy all reserved to Westminster, and we can’t ignore the fact that changes to one part of the housing sector, have consequences across it all.

That is why, for example, so many housing representatives in Scotland are concerned about the proposed model for private rented sector rent controls in the Housing (Scotland) Bill being considered by parliament. It is not that rent controls by themselves are undesirable or unworkable, but without recognition of the impact it will have on landlord investment, homelessness presentations and mid-market rent supply and meaningful measures to address them, it will only exacerbate the existing housing emergency. Housing is systemic and interconnected so our policy prescriptions must be so too.

But regardless of the recommendations that Duncan’s report produces, and I know there will be things we instinctively agree and disagree with, the biggest challenge will be how much capacity, curiosity and resource is there in the sector and government for system change and risk taking? Will we engage with the process or just judge the recommendations at the end depending on how many of our priorities have made it into the final draft?

I think back to the publication of the Scottish government’s Housing to 2040 paper and how it set out a positive vision for our housing system, but it was just a vision. Like any vision, it needs a framework for delivery, it needs evidence, it needs new structures, more collaboration, more ownership and more humility. We need to look at the foundations of a better housing system and how we correct market failure.

So, this review is a chance to re-start the discussion on getting to that improved system but also being honest about the things we can’t do, or the things we need to wait to do.

Are we willing to be part of an open discussion? Can we all compromise on the things that we have fought so hard for to create a better housing system. Can we prioritise the outcome and not the input? It will be great to be part of the conversation. I hope we can.