New Edinburgh housing development shows why Scotland has a housing crisis

A new site in Edinburgh with the potential for 200 homes has been brought to market in Edinburgh City. What has been marketed as an investment opportunity in the capital city demonstrates why Scotland, and in particular Edinburgh, is in the midst of a housing crisis.

The new development site falls in the very central location of Georgie, perfect for anyone working in the city. With the demand for housing in the city so high the potential for 200 homes could indeed start to plug the hole for much needed affordable accommodation. However it has the potential to do the opposite.

That’s because this development is being sold as the perfect investment opportunity and explaining that Edinburgh’s buy-to-let market is still in its infancy. Furthermore, Manchester is used as a comparison and indeed has a flourishing buy-to-rent market. But also an affordability crisis. This is being advertised as a money-gouging opportunity, a prime example of how Scotland’s housing market is being prioritised as an investment opportunity not a mechanism for providing affordable and high-quality homes.

A new analysis from Safe Deposit Scotland found that one third of private renters were finding it difficult to pay their rent at the end of the month. Many are having to forgo everyday items just to get through the month. It is deals like buy-to-rent that increase demand and therefore push prices up. Forcing people either into debt, poorly maintained housing or out of a city like Edinburgh, even though this may be their place of work.

For cities like Edinburgh a central location like this should be used for affordable social housing. What we constantly see is a lack of affordable housing in centre of cities and large estates being delivered on the edge of cities, with little sense of community and amenities given to planning. Not only does this make it harder to attain jobs in major cities but the breakdown of community can lead to many socio-economic problems.

When Scotland had over half of its population living in social housing, affordable housing was ingrained in our society, and social housing wasn’t a last resort. Not only did it provide affordable housing through-out all of Scotland, including in the very centre of cities, but it helped to keep the private sector in check. High-quality and affordable social housing forces private landlords to do the same and allows people to access the economy instead of being plonked on the outside of a city.

As prices continue to spiral, and Edinburgh property growth outpaces national average prices it is imperative that we don’t allow the property gouging to continue. Buy-to-let housing firms have become the biggest type of business in the UK, and we continue to see an increase in oversea speculative buyers.

The housing crisis that we see before us is of our own making. The thousands in Scotland that remain in temporary accommodation, the many that struggle to make their rent every month, and the thousands that have to put up with sub-standard, poorly maintained housing are there because we have allowed it.

There are however several options that would ease this crisis. Common Weal has long campaigned for a new Property Tax, an updated Council Tax that we see real market value reflected in the tax. Which in turn would help to reduce the ridiculous inflated prices we are currently experiencing in the housing market.

Permanent rent controls for private renters. As of this month these protections are no longer afforded to renters. Introducing a robust points-based rent control system would not only cap rents at a market price but would also be based on the quality of home being offered, a system that has had success in other European cities.

A revaluation of our approach to social housing. More social housing should be built, but not only that, it should be geographically inclusive and not be approached with an out of sight out of mind mentality.

Lastly, further taxes on oversea buyers, second-home owners and property firms whose businesses revolve around draining as much profit out of the housing market as possible.

Find out more about hour housing agenda in Sorted.