The Scottish Budget needs to detail immediate actions to address the housing emergency according to property firm DJ Alexander. 

The lettings and estate agency said that the Scottish Government needs to provide stimulus for the private building sector, provide clarity and stimulus to the private rented sector (PRS), put in place an extensive social housebuilding plan, and encourage homebuyers through a revision of the current land and buildings transaction tax (LBTT).

With 13 councils now having declared a housing emergency, it is clear that the housing sector needs immediate and substantial support. Scotland has record levels of homelessness, there is unprecedented demand for private rented sector properties, and the lowest number of all sector newbuild housing starts since 2013 means that all parts of the housing sector need help and support.

The latest housing statistics quarterly update showed that all sector newbuild starts in Scotland have fallen by 4,745 (-22.4%) from 21,190 to 16,445. Private sector newbuilds are down 3,290 (-20.1%), falling from 16,387 in 2022 to 13,097 the following year, which makes it the lowest figure since 2020 when Covid severely impacted the sector. 

The picture for the social housing sector is worse, with a fall of 1,595 (-31.8%) dropping from 5,022 in 2022 to 3,427 in 2023 – the lowest number of social sector starts in a year since 2012.

David Alexander, the chief executive officer of DJ Alexander Scotland, commented: “There is an immediate need to support all parts of the housing sector to ensure we start to tackle the current emergency. 

“Planning must be made easier, there must be greater encouragement for property investment, and more areas for development must be released if Scotland’s housebuilding sector is to grow and produce the homes required over the next decade. 

“There is also an immediate need for clarity on the future policy on rents in the private rented sector (PRS). Uncertainty has resulted in stalled investment in the sector and this needs to be addressed immediately if the enormous demand currently being experienced in the sector is to be met. The Housing Scotland bill needs to be extensively revised or even dropped altogether.”

Alexander added: “A revision of the land and buildings transaction tax (LBTT) would ensure that Scottish homebuyers had a level playing field with their southern counterparts. There is little sense in having such a wide disparity between homebuyers a few miles apart and equalising the rates for the whole of the UK makes sense for individual buyers and for companies and individuals considering investing and moving to Scotland.

“With so many competing demands for funds in Scotland there is clearly pressure in many areas, but housing is such a fundamental issue at present that it would be remiss if there was no focus on it in the forthcoming budget. 

“Some serious financial commitments now would show a level of intent and purpose which has been lacking in recent years and I would hope that this is enacted when Shona Robison stands up next Wednesday to deliver her Budget speech.”