Our submission builds on the priorities we set out ahead of the Scottish elections. A stronger property market can support the wider economy, while targeted funding can help tackle the housing emergency. Measures that encourage investment, ease housing costs, and help more people find a secure home should be firmly at the top of the agenda for ministers.
Reduce property taxes and support investment
Tax policy must support individual landlords as well as larger investors if Scotland is to maintain a diverse rental market. The Scottish Government should cut Land and Buildings Transaction Tax (LBTT) and reduce, then abolish, the 8% Additional Dwelling Supplement (ADS).
Higher purchase costs can discourage investment and make it harder for people to move. For landlords, these costs come alongside wider tax and regulatory pressures, with a risk that increased costs feed through into rents. At a minimum, ministers must consider an ADS exemption where one landlord buys a property from another, which could help keep homes in the private rented sector (PRS) and provide greater security for existing tenants.
Preferably, we want to see a full review of LBTT rates and bands to assess whether they have kept pace with wages and house prices. Support for older homeowners who want to move to a home that better suits their needs could release housing equity and help make underoccupied homes available.
Help owners improve energy efficiency
Funding for low-cost loans and grants for private landlords and owner-occupiers to make their homes more energy efficient must continue and be promoted widely.
Keep tax on rental income as low as possible
We urge the Scottish Government to use their tax-setting ability to avoid further increases, which add to the pressures facing landlords and weaken the case for remaining in the sector or investing in more homes.
The Budget should help create the conditions for long-term investment, giving landlords greater confidence to provide the homes Scotland needs.
Fund a faster tribunal
Applications to the First-tier Tribunal for Scotland’s Housing and Property Chamber rose by 13% in 2024–25, with individual cases becoming more complex as housing legislation changes. Cases that once took around three months are now taking more than twice as long, with delays create stress, uncertainty, and expense for tenants, landlords, and letting agents.
We are calling for more funding and the appointment of around 15 full-time judges, supported by fee-paid judges and ordinary members, to help reduce the backlog and shorten waiting times.
Build social housing and bring empty homes back into use
The Budget must support a sustained and ambitious social housebuilding programme. Without enough social homes, the private rented sector will continue to absorb demand it was not designed to meet.
Alongside new development, we want stronger support for the Scottish Empty Homes Partnership and funding for more council Empty Homes Officers to facilitate returning homes to use, improving neighbourhoods, and reviving communities.
Press Westminster to restore housing support
We continue to lobby strongly for the UK Government to unfreeze Local Housing Allowance (LHA) and restores its link to local rents. Our wider campaign calls for rates to cover at least the cheapest 30% of local rents, with annual increases to prevent support falling behind again. We want the Scottish Government to keep pressing for this change as part of a coordinated approach to housing affordability.
