The evaluation of Leasing Scheme Wales
Like the rest of the United Kingdom, Wales faces a shortage of social housing – housing administered through local authorities which provides affordable rents and long-term tenancies for those who need it most. With around 90,000 households on the waiting list for social housing, the Welsh Government is taking various actions to deliver more social homes. This includes building 20,000 new social homes by 2026, reviewing how social housing is allocated to tackle homelessness, and innovative schemes such as Leasing Scheme Wales.
Alma Economics was commissioned by the Welsh Government to evaluate Leasing Scheme Wales, which seeks to improve the number of affordable and high-quality homes in the private rented sector for those receiving benefits. Leasing Scheme Wales makes it easier for property owners to lease their property to people who are eligible for social housing, with local authorities guaranteeing that the property is well-maintained and that property owners receive their rent (at Local Housing Allowance levels). In addition, the scheme incentivises property owners to get involved by providing grants to upgrade the energy efficiency and standards of homes. More information is available here.
We have completed an interim report, including a scoping phase and baseline process evaluation. It involved 25 interviews with representatives of local authorities participating in the scheme, which highlighted the shortage of 1-bed and over 5-bed properties across social housing stocks. Local authorities also noted that participating property owners tended to be accidental owners of additional properties or people who owned their property outright. 45 scheme-participating property owners completed a survey – with 6 of these attending focus groups or interviews. They identified the guaranteed rent payments, management of the property by local authorities, and the principle of helping those in need as motivating factors to lease their property through Leasing Scheme Wales. Of the 1,535 non-scheme-participating property owners who completed a survey, only 1 in 4 were aware of the scheme before joining the research. The main barrier preventing property owners from joining the scheme was said to be the rent offer being too low compared to the private market. These findings were corroborated through interviews and focus groups. A low number of tenants participated in this phase of the research, not surprising considering the early stages of the scheme's implementation. Engagement with tenants will be prioritised in subsequent phases of the evaluation.
Our findings suggest that greater efforts to raise awareness of the scheme and its benefits for property owners – alongside increasing the support and resourcing for local authorities to administer and advertise the scheme – could be fruitful. In addition, upscaling the incentives available for property owners joining the scheme could lead to more properties being leased through the scheme in future.
We look forward to continuing later phases of this research over the coming years.