Scottish landlords urge Scottish government not to follow England’s tax hikes

The Scottish Association of Landlords (SAL) is warning the Scottish government not to impose a tax hike on landlords in the upcoming Scottish Budget.

The Autumn Budget in England saw Chancellor Rachel Reeves increase tax rates on dividends, property, and savings income by two percentage points.

According to the Scotsman, the UK government said it would engage with Scottish ministers “to provide them with the ability to set property income rates in line with their current income tax powers.”

Will worsen the housing crisis

Industry experts have warned that the tax hike on landlords in England will push up rents for tenants. SAL has urged the Scottish government to avoid a similar approach and instead support landlords.

SAL chief executive John Blackwood told Property118: “If the Cabinet Secretary chooses to follow the Chancellor’s lead by imposing additional taxes on Scotland’s landlords, she will actively worsen the housing crisis.

“Many landlords in Scotland are already considering reducing the size of their investment or leaving the sector entirely, taking their properties with them.

“Rather than making investment less attractive, Shona Robison should work with landlords to encourage investment to help us create a private rented sector that works for everyone.”

The Scottish Budget is scheduled for 13 January 2026.