The private rented sector must play an even greater role in meeting Scotland's housing needs, the Communities and Sport Minister Stewart Maxwell has said.

Speaking at Shelter's housing conference in Edinburgh yesterday, Maxwell set out the Scottish Government's wish to see an even greater involvement from the sector in light of the credit crunch.

He also outlined for the first time the main objectives of the current government review of private rented housing, which, as well as ensuring that the sector is capable of delivering the right types of housing in the right places, it will also examine a range of options for increasing supply of rented housing for low income and homeless households.

The review will also promote partnership working between local authorities and private landlords and assess current trends alongside the views, experiences and aspirations of both landlords and tenants through large scale surveys.

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It will also consider international comparisons particularly where governments can pool together and use a raft of policy, fiscal and other tax incentives which can stimulate activity in the market.

The review will support the ongoing consultation on regulations to give local authorities greater flexibility to discharge homelessness duties in the private sector.

Maxwell said: "In Firm Foundations we set out our aim to see a modern, vibrant private rented sector, able to meet housing need through the provision of good quality and well managed accommodation.

"Since then we have seen a downturn in global financial markets and the credit crunch lead to turbulence in the housing market. While we are confident Scotland's economy is well placed to address the challenges presented by the current economic climate, this Government will not just sit back and wait for conditions to improve.

"Last week the First Minister set out our vision for the housing market in this changing economic climate. In this context, our ambitions for the private rented sector to play a greater role in meeting housing need have become even more sharply focussed."

Responding to the speech, Shelter Scotland say a new longer lease for renters should be considered as part of a wider review of the private sector in Scotland - and could help house people as the effects of the credit crunch continue.

(GK/JM)