A holistic approach is essential
Tackling Scotland’s housing emergency requires a comprehensive approach that:
- Increases housing supply across all tenures
- Supports a sustainable and well-functioning PRS
- Reviews taxation to improve market mobility
- Ensures housing support reflects real costs
We have set out a 10-point manifesto, directly shaped by members' insights, detailing what the next Scottish Government must do to support a stable, affordable and functioning property market.
Supply remains the core issue
The housing shortage in Scotland, and across the UK, is driven by a failure to build enough homes. Over the past 20 years, the number of homes built relative to population growth has fallen sharply, widening the gap between supply and demand.
Any long-term solution must focus on building more social and affordable housing and encouraging a mix of developments that meet local demand. Without significantly increasing the number of homes available across all tenures, affordability pressures will persist regardless of buyer support schemes.
Review property taxes to support the market
Transaction taxes can act as a barrier to mobility and reduce overall market activity, particularly for first-time buyers and those looking to move up the housing ladder.
A more balanced approach could help stimulate transactions and improve access to homeownership. We have recommended that the Scottish Government carry out a full review of property taxation, including the 8% Additional Dwelling Supplement and LBTT thresholds, to encourage investment and restore confidence.
Action needed in the private rented sector
The housing emergency is not limited to homeownership. Pressures in the private rented sector (PRS) continue to intensify, with demand far outstripping supply.
Recent evidence shows that policy interventions such as rent controls risk reducing the number of available rental properties, with a quarter of rural lets reportedly leaving the market. This further restricts options for tenants and increases competition for remaining homes.
Unfreezing Local Housing Allowance
We have also repeatedly called for the UK Government to unfreeze Local Housing Allowance (LHA). Keeping LHA rates aligned with market rents is essential to ensure that housing support reflects real-world costs.
Failure to do so risks pushing more households into financial difficulty and limiting access to suitable accommodation, particularly for lower-income renters.
The Scottish Government should continue to press Westminster on this issue as part of a coordinated response to the housing crisis.
