According to DJ Alexander, the main political parties are not acting with urgency in addressing Scotland’s housing emergency, with some short-term measures likely to ease the current pressure.
One of Scotland’s best-known lettings and estate agencies believes there is broad agreement across party manifestos that housebuilding should increase. However, the firm argues that most of the proposals do not have an immediate impact, with some policies potentially putting further pressure on an already disrupted market.
The SNP, in power for two decades, continues to focus on its existing pledge to deliver 110,000 affordable homes between 2020 and 2031. However, this goal is unlikely to be widely met and, critics argue, does little to address the current supply shortage. Additional proposals include a £10,000 first-time buyer grant on properties sold by landlords at “fair market value” and a tenant first-refusal scheme.
The Conservatives set out the most comprehensive housing-related agenda, including scrapping proposed rent controls, removing the building safety levy, dropping net zero requirements for housing developments and changing planning rules to encourage private rented sector investment. They also propose eliminating the Land and Buildings Transaction Tax (LBTT) and reducing the Additional Housing Supplement (ADS), arguing that the measures would significantly reduce the cost of purchasing property.
Labor has set a target of 50,000 affordable homes in the next parliamentary term and 125,000 homes across all terms over five years – a figure that has not been achieved since the mid-2000s. Its proposals include increased construction training, the creation of housing development trusts at local level and closer engagement with the private rented sector, which it acknowledges plays a vital role in housing supply.
The Liberal Democrats propose a new national housing strategy, increased social housing delivery and measures aimed at stabilizing and restoring confidence in the private rented sector.
The reform sets a target of 15,000 new homes per year and would repeal SNP tenancy reforms for new tenants while leaving existing tenancies unchanged.
The Greens have proposed 15,700 new homes a year, with strict controls on student and build-to-rent development. They also support the introduction of rent controls at local authority level, including student accommodation, and the removal of the existing 6% rent cap.
Overall, DJ Alexander Ltd concludes that although housing features prominently in all manifestos, the gap between ambition and delivery remains significant, particularly given the scale and urgency of Scotland’s housing pressures.
DJ Alexander David Alexander, chief executive of Scotland, commented: “Everyone agrees that more homes need to be built in Scotland, but although these manifestos acknowledge this, there remains a need for an overall strategy with a sense of urgency. The More Homes Scotland body proposed by the SNP is not due to be established for at least another year and there is no sense that much will change in the short to medium term.”
“Easing planning rules, access to funding through the Scottish Investment Bank in the case of the Labor Party or through pension fund assets in the case of the SNP might be good ideas, but the obvious way to ensure more homebuilding is to limit building restrictions, encourage investment and make Scotland an attractive place for home buyers, property investors and landlords. It is encouraging to see that Labour, Conservatives and Liberal Democrats are all looking to build relationships with the private rented sector. We are keen to maintain and grow it to ensure it is able to continue to play its vital role in providing homes for people in Scotland.”
He added: “Although it is a matter of concern, whatever the result on the 7thOf May, the housing sector may experience more of the same. After the election there could be more indecision, more delays and more unnecessary regulation that hinders investment. I hope that whatever the makeup of the new Scottish Government, they will keep housing at the top of their agenda and ensure that the current housing emergency is addressed and ceases to exist within the next five years. “Anything less than that would be humiliating.”
Acquisition spree continues as major property agency group expands