Personal landlords north of the border have warned the Scottish authorities that growing property taxes will additional worsen the housing disaster.
The Scottish Affiliation of Landlords (SAL), which represents landlords in Scotland, issued the warning following the current UK Price range and forward of the Scottish Price range, due on 13 January 2026.
Chancellor Rachel Reeves introduced {that a} 2% enhance in earnings taxes levied from property will hit landlords in England from April 2027, with the identical hike due for earnings from financial savings and dividends from April 2026.
Scotland’s landlords are involved that Cupboard Secretary for Finance and Native Authorities, Shona Robison, is making ready to hammer the personal rented sector (PRS) in Scotland with the same tax when she delivers her Scottish Price range.
SAL believes that property earnings tax will discourage funding in Scotland’s PRS, leading to fewer properties being accessible to hire as landlords depart the sector.
At First Minister’s Questions final week, Scottish Conservative chief Russell Findlay raised the problem, asking John Swinney if he accepted that “new tax might additional harm the rental marketplace for tenants?”
Current coverage shifts, together with impending hire controls, have resulted in lots of Scottish landlords, 90 p.c of which personal one or two properties, contemplating lowering their portfolios or leaving the sector completely.
Amid the present housing disaster, SAL urges the Scottish authorities to incentivise funding within the sector and work with landlords to extend the availability of housing accessible to create a PRS that works for all.
SAL chief govt, John Blackwood, mentioned: “If the cupboard secretary chooses to comply with the chancellor’s lead by imposing further taxes on Scotland’s landlords, she’s going to actively worsen the housing disaster.
“Many landlords in Scotland are already contemplating lowering the dimensions of their funding or leaving the sector completely, taking their properties with them.
“Relatively than making funding much less enticing, Shona Robison ought to work with landlords to encourage funding to assist us create a non-public rented sector that works for everybody.”
Lease hikes inevitable after landlords hit with additional 2% tax
