The property industry was bracing itself for policy changes after the Scottish government’s formal co-operation agreement with the Green Party was terminated by Humza Yousaf last week.

But the first minister’s resignation yesterday has created further uncertainty for the housing sector.

The Scottish government’s record on housing has been under intense scrutiny following a £196m cut to the country’s affordable housing budget, whilst figures published last month pointed to the lowest number of homes started by housing associations last year than at any point since 1988.

The Scottish Federation of Housing Associations (SFHA) recently declared the government target of delivering 110,000 homes by 2032 “all but over” amid “absolute freefall” in the supply of new homes and record levels of homelessness.

As minister for zero carbon buildings, active travel and tenants’ rights, Patrick Harvie had shared responsibility for housing and was inextricably connected to the proposed rent control measures in the recently published Housing Bill.

But his removal from the government last week was seen as an opportunity to allow for a rethink on housing policy north of the border.

John Blackwood, chief executive of the Scottish Association of Landlords, said: “Hopefully with these changes, we will see a more pragmatic and collaborative approach to housing policy that will allow for discussion and implementation of long-term measures that will end Scotland’s housing crisis.

“The Bute House Agreement has systematically damaged investor confidence in building new homes and has forced many landlords to sell up, with institutional investors openly saying they no longer see Scotland as an attractive place to invest. The Scottish Government must now act urgently to reverse their anti-landlord policies.

“We need a coordinated solution which encourages investment in social housing, council housing, the private rented sector and new owner-occupied homes.

“Only with that kind of coordinated partnership approach, can we make it affordable for landlords to continue to let out homes to rent, while increasing supply of all types of housing to make sure that everyone can have the home they deserve, at a cost they can afford.”

Meanwhile, rent controls and better protections for tenants were an important piece of legislation to deliver the vision for Scotland that Yousaf has promised and will go a long way in supporting Scotland’s tenants. But now that he has stepped down as first minister, there is again space for a complete rethink when it comes to this policy and housing in general in Scotland.

Timothy Douglas, head of policy and campaigns at Propertymark, commented: “The First Minister will change but the issues facing Scotland’s housing sector won’t until those running the country immediately tackle the cost of renting through increasing supply of homes for people to rent and review the cost of providing rented property and purchasing a home to live in.

“Humza Yousaf’s resignation is a chance for his replacement to re-evaluate plans for rent control, boost investment and set out a road map for the property sector to reduce its carbon footprint with clear funding incentives and achievable targets.”

SNP’s decision to ditch Greens ‘hopefully’ allows for rethink on housing policy