Social sector housing costs rise as rent eats up a quarter of income

Social rented households in Scotland spent one quarter (24 per cent) of their net income on housing costs and have seen their rent go up, new data has revealed.

The proportion of income spent on housing between 2013-14 and 2015-16 was above the 9 per cent paid for households owning their own property with a mortgage.

The average weekly rent for a social sector property in Scotland in 2016-17 was £74.44, an increase of 2.1 per cent on the previous year.

Housing association rents averaged £80.28 per week, 16 per cent higher than local authority rents of £69.20. More than two thirds (68 per cent) of social rented households in 2016 had a net income of £20,000 or less.

That compares with with 45 per cent of private rented households, 45 per cent of households owned outright and 16 per cent of households buying with a mortgage

Scotland has a higher proportion of social rented houses than England and Wales, providing homes for around 1.17 million people.

Figures released by the Scottish Government’s chief statistician showed that, in 2016, 23 per cent of Scottish houses were classified as social rented, compared with 17 per cent in England and 16 per cent in Wales.

The data was contained in the Social Tenants in Scotland 2016 publication, which also found that average social rents in Scotland were 18 per cent lower for housing association homes and 21 per cent lower for local authority homes when compared with south of the Border.

When compared to households buying with a mortgage, social rented households were more likely to have: a female highest income householder; an adult whose economic status was permanently sick or disabled or an adult with a long-term physical or mental health condition.

Scotland saw an increase in the number of individuals living in social rented housing, with the figure rising from 1.14 million in 2015 to 1.17 million in 2016.

Housing minister Kevin Stewart said: “Social housing in Scotland continues to be more affordable than England or Wales, which is vital at a time when UK government welfare cuts are having a devastating impact on people across the country. We are increasing funding for discretionary housing payments – which significantly benefit those living in the social housing sector – by 5 per cent, to over £60 million in 2018-19. That will enable us to continue mitigating the bedroom tax.”