SNP plan to give tenants first refusal on homes sparks backlash

Ahead of the Scottish elections, the SNP has pledged tenants will get first refusal if a landlord puts their home up for sale.

Under the proposed plans, when a landlord puts the property on the market, renters in Scotland would be given a period of exclusivity to purchase it “at a fair market rate”.

The Scottish Conservatives have claimed the plans “will spook landlords”, while the Scottish Association of Landlords (SAL) warns there is a lack of clarity over what constitutes a “fair market price”.

Forcing people to upend their whole lives

First Minister John Swinney claimed the policy would help young people who are stuck renting and can’t save up for a deposit.

He said: “So many people are stuck paying more on rent than they would on a mortgage, and with costs just going up and up, there is nothing left over at the end of the month to save for a deposit.”

“That has made it all the more difficult when private renters find themselves having to leave their home because the owner has decided to sell up. As well as forcing people to upend their whole lives, it also has serious financial implications.

“That is why I will give renters the right to first refusal on the home they live in, at a fair market rate, if the owner of the property decides to sell.”

Reckless intervention in the housing market

However, the Scottish Conservatives warn the policy would make it harder for first-time buyers to get on the housing ladder.

Scottish Conservative housing spokesperson, Meghan Gallacher, said: “This is another reckless SNP intervention in the housing market.

“Far from doing what John Swinney thinks it will do, it will spook landlords, choke off supply and instead make it even harder for first-time buyers to get on the ladder.

“John Swinney is talking this up as support for renters, but the reality will be a housing market in Scotland that is even more broken.

“The Scottish Conservatives will scrap LBTT, Scotland’s version of stamp duty, and focus on delivering 80,000 affordable homes. That is the only way to truly make home ownership achievable.

“The best way to stop an SNP majority and get Scotland building again is for Scots to vote for the Scottish Conservatives on their peach ballot on May 7th.”

Meaning of fair market price

Landlord organisation SAL warns the devil will be in the detail over how the policy would work in practice, particularly around the meaning of a “fair market price”.

SAL chief executive John Blackwood said: “We welcome any move that results in more homes becoming available as part of an effort to tackle the housing crisis.

“Many landlords tell us that they would prefer to sell to their tenants and allow them to stay in their homes, saving landlords the hassle of ending the tenancy and marketing the property for sale.

“However, the question for landlords will be what is the “fair market price”, and, as always, we await the details to determine who this policy will actually support.

“For far too long, the discussion has been framed as pitting landlords’ rights against those of tenants. We hope we can reframe that as more of a partnership between a customer and a provider.

“To properly tackle the housing emergency, we need a full range of properties available, including in the private rented sector. This means incentivising landlords to invest and grow their portfolios and avoiding measures that actively discourage them.”

The Scottish elections take place on May 7, and SAL has previously told Property118 that politicians need to change their attitude towards landlords.