Propertymark criticises Scottish government over lack of focus on housing

An industry body has slammed the Scottish government for barely mentioning housing despite the country’s ongoing housing emergency.

Propertymark says First Minister John Swinney’s first speech in the Scottish Parliament since the summer recess failed to mention reducing tax burdens for landlords.

The criticism comes as the Scottish government proposes giving renters a period of exclusivity to buy a property when their landlord puts it on the market, at what it describes as “a fair market rate”.

More people in Scotland get a home

Mr Swinney said in his speech: “Our ambition, and our intention, is that more people in Scotland get a home that they can afford.

“That includes investment to deliver 111,000 affordable homes by 2032, with at least 70 per cent available for social rent.

“Our ‘First Homes Fund’ has been launched and will continue throughout this parliamentary term. It will give much-needed help, worth up to £10,000, to thousands of first-time buyers.

“And we will ensure fair access to safe housing, including the roll out of our new £50 million homelessness prevention fund, with the first awards made this year. We will end the use of unsafe and harmful temporary accommodation for children”.

However, Mr Swinney failed to mention how the Scottish government would help tenants and landlords.

Reduced tax burden for landlords

Timothy Douglas, head of policy and campaigns at Propertymark, said the Scottish government must do more to help landlords and tenants.

He said: “Despite the ongoing welcome commitment to the First Homes Fund and affordable homes, housing was barely mentioned by the First Minister in his programme for government speech, which is surprising considering the ongoing housing emergency that Scotland faces.

“Talk of new structures for local government risks exacerbating this situation further, as resources will likely be pooled rather than expanded.

“Furthermore, for all the words about strengthening the economy, there was no mention of reducing costs and taxes for renters and home buyers and sellers. History shows us that when property taxation is lowered or removed, transactions increase in the sales market, while a reduced tax burden for landlords means fewer costs being passed on to tenants via higher rents.

“Tenants and landlords alike would also benefit from a better-resourced First Tier Tribunal, which must form part of the Scottish government’s reorganisation. Plans for a right of first refusal for tenants to buy their rented property must also be workable and evidence-based”.

Proposed EPC targets

Mr Douglas added proposed EPC C targets for 2028 for new tenancies and 2033 for all existing tenancies must not result in a one-size-fits-all solution.

He said: “Any reforms via the Heating and Energy Performance Bill to bring about minimum energy efficiency standards for the property sector in Scotland must be realistic and achievable, as well as avoid a one-size-fits-all approach for rural and urban housing.

“The Council Tax (Scotland) Bill will introduce two extra bands for the mansion tax, a measure that will only target a small minority of properties and risks this end of the market being held up by disputes over valuations and administration.”