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Landlords call on Scottish government to compensate them for income lost during pandemic
A group of housing associations based in and around Glasgow and the West of Scotland have called on the Scottish government to commit to compensating social landlords for income lost as a result of coronavirus.
In a letter sent to communities secretary Aileen Campbell, David Bookbinder, director of the Glasgow and West of Scotland Forum of Housing Associations (GWSF), said all the organisation’s 65 members “are expecting major shortfalls in income over the coming months as they effectively support tenants financially by temporarily absorbing shortfalls of rent”.
He added: “So whilst the detail can be discussed at a later stage, at this point in time the sector very much needs an in-principle commitment from the Scottish government to explore a mechanism for compensating social landlords for income which is lost as a result of protecting tenants during the crisis and which cannot realistically be recovered.”
Mr Bookbinder said the build-up of arrears from the government’s coronavirus evictions ban is just one of the ways in which social landlords in Scotland expect to be financially impacted by the crisis.
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Another concern is that void properties will increasingly lie empty as landlords and contractors struggle to carry out routine works and visit prospective applicants.
Mr Bookbinder said that the sector would not wish to publicise a government commitment to provide it with financial support as associations “know it would not be appropriate to give any impression to tenants that rent does not still have to be paid”.
His letter followed confirmation from the Scottish government that no social or private renter will be evicted for financial hardship as a result of coronavirus.
Tomorrow, the Scottish government will introduce the Coronavirus (Scotland) Bill, which will increase the minimum eviction notice period for private and social tenants to up to six months, depending on the grounds used.
The GWSF is part of a newly formed ‘social housing resilience group’ set up in Scotland in response to coronavirus. Other members include the Scottish Federation of Housing Associations, the Scottish Housing Regulator and the Scottish government.
A Scottish government spokesperson said: “We are working with partners across the housing sector on our response to the current public health emergency. We have invited key organisations, including the GWSF, to discuss the issues with us including the economic impact on tenants and landlords.”
