We support the Scottish Government’s goal of remediating unsafe cladding, but the proposed Scottish Building Safety Levy (SBSL) could reduce the construction industry’s capacity to build new homes, especially at a time when the government itself has declared a housing emergency.
Ministers must reconsider the design of the SBSL and focus on fairer, more effective routes to funding remediation. Propertymark will continue to represent the sector and work with policymakers to deliver safe, affordable homes across Scotland.
Apply the “polluter pays” principle
The SBSL should only apply to those responsible for installing unsafe cladding. Imposing a blanket levy on all developers, including those uninvolved in historic safety failures, risks slowing the construction of new homes, especially in areas with lower market returns.
It is particularly concerning that small and medium-sized developers, which were not responsible for most cases of unsafe cladding and are less able to absorb extra costs, would be disproportionately affected due to the fixed cost structure of the proposed levy.
Targeting the levy at those responsible for unsafe cladding would create an incentive to fix defects more quickly, reducing costs to the public and helping affected residents sooner. Where a solvent building owner or developer cannot be identified, other responsible parties—such as manufacturers or contractors involved in the supply of cladding—should contribute to remediation costs.
Alternative solutions proposed
We have proposed two alternative funding mechanisms to target those most responsible without hindering the wider housing market:
- A building-specific levy applied to those responsible for installing flammable cladding, which could be lifted once remediation is verified to be of a sufficient standard.
- A levy on the sale of construction products—such as flammable cladding—by manufacturers involved in their distribution, with an opt-out if all affected buildings are remediated.
These targeted approaches would improve building safety, incentivise prompt remediation, and ensure that those responsible contribute without hampering new development.
Support for members
Our Housing (Cladding Remediation) (Scotland) Act 2024 fact sheet gives members an overview of the legislation and what it means for managing and letting agents.
