One of the UK’s leading lettings agents is bemoaning what he calls “the missed opportunity “ to help the rental sector in this week’s Scottish Government Budget.
David Alexander, chief executive of DJ Alexander Ltd, says: “The Scottish Budget was a missed opportunity to address some of the key issues affecting the housing sector in Scotland.
“There is to be a £550m investment in the supply programme for rent, social rent and affordable home ownership but given the scale of demand and the waiting list for social housing this, although a large amount of money, is still not sufficient to address the issue. In many local council areas, the wait for social housing is measured in years and sometimes in decades.
“This is an issue requiring sustained major investment over a prolonged period and the current announcement is welcome but clearly not going to meet demand in the next five to 10 years.”
“There is no change to Land and Buildings Transaction Tax which makes Scotland much more expensive to buy property at a very early stage. First time buyers are more punitively hit than anywhere else in the UK with tax starting at £175,000 compared to £425,000 in England and Wales. While any property over £325,001 attracts a 10 per cent charge which doesn’t occur south of the Border until properties cost more than £925,000.”
He continues: “There is an additional £358m provided to accelerate the installation of clean heating systems but given that this represents just over one per cent of the anticipated £33 billion costs of the implementation of these energy efficient products it is clear that the homeowner is still being asked to stump up for the Scottish government’s green ambitions.
“With higher personal taxes than anywhere else in the UK and higher house purchase costs it is hard to see how these policies make Scotland an attractive place to live and work. This budget was an opportunity to encourage more housebuilding, to address serious shortages in the number of social housing available, and to attract higher earners to live and work here. Unfortunately, I think that it has been a missed opportunity on all counts.”
