Scottish Government urged to act over housing crisis

Scotland’s housing crisis is reaching a critical point, and the upcoming Scottish Budget must address the issue with immediate and substantial action, one property expert says.

David Alexander, the chief executive of DJ Alexander Scotland, says that with 13 councils now declaring a housing emergency, the need for urgent support is clear.

Scotland is facing record levels of homelessness, unprecedented demand for private rented sector properties, and the lowest number of new build housing starts since 2013.

That means the government must now provide stimulus for the private building sector and offer clarity and help to the private rented sector (PRS).

An extensive social housebuilding plan needs to be put in place and homebuying needs to be encouraged with a revision of the land and buildings transaction tax (LBTT).

Support all parts of the housing sector

Mr Alexander said: “There is an immediate need to support all parts of the housing sector to ensure we start to tackle the current emergency.

“Planning must be made easier, there must be greater encouragement for property investment, and more areas for development must be released if Scotland’s housebuilding sector is to grow and produce the homes required over the next decade.”

He added: “There also needs to be an immediate large-scale programme of housebuilding in the social sector to meet the enormous waiting lists which have built up over the last decade.”

Rents in the private rented sector

Mr Alexander continued: “There is also an immediate need for clarity on the future policy on rents in the private rented sector.

“Uncertainty has resulted in stalled investment in the sector and this needs to be addressed immediately if the enormous demand currently being experienced in the sector is to be met.

“The Housing Scotland bill needs to be extensively revised or even dropped altogether.”

He added: “A revision of the land and buildings transaction tax (LBTT) would ensure that Scottish homebuyers had a level playing field with their southern counterparts.”

New build starts have fallen

The nation’s latest housing statistics quarterly update reveals a worrying trend – all-sector new build starts in Scotland have fallen by 22.4%.

Private sector newbuilds are down by 20.1% and social sector newbuilds have plummeted by 31.8% – that’s the lowest figure since 2012.

Mr Alexander said: “Some serious financial commitments now would show a level of intent and purpose which has been lacking in recent years and I would hope that this is enacted when Shona Robison stands up next Wednesday to deliver her budget speech.”