David Alexander, chief executive officer of DJ Alexander Scotland, has said the Scottish Budget does not go far enough to support the housing market north of the border, arguing that it lacks a clear and coherent strategy to support the social housing sector.
The Scottish government has announced plans to change income tax thresholds as part of its Budget for 2026-27.
Finance Secretary Shona Robison also unveiled a new tax on homes worth more than £1m and an increase in the Scottish Child Payment, but Alexander warned the Budget would not deliver wide-ranging reforms needed to support many people in need of housing.
He commented: “This was a missed chance for the SNP government to set out a coherent and effective housing strategy for the next five years. While the promise of record levels of investment for affordable housing of £4.9bn for 36,000 homes over the next four years is an improvement it does little to address the long-term stagnation in the building of homes for the social housing sector.”
“In 2007, when the SNP first came into government, there were 607,191 homes in the social housing sector which was 25% of overall housing tenure. The latest figures only cover up to March 2023 but show a total of 626,928 which is an increase of just 19,737 over 16 years and shows the sector now only comprises 23.1% of the total housing tenure. It is worth remembering that in 1993 there were 822,000 homes in the social housing sector representing 37% of all houses in Scotland.”
“The latest statistics for new build social sector starts in the financial year 2024-25 show just 3,147 properties being built which is the lowest figure since 2012-13 and the third lowest figure since records began. Given that there is a 200,000 strong social housing waiting list and the highest ever level of adults and children in temporary accommodation this sounds like a sticking plaster to cover a gaping wound.”
Alexander continued: “There is to be a version of the mansion tax in Scotland with two new rates of council tax bands for properties worth more than £1m starting in 2028. As with the Westminster proposal the issue will be over who values the properties and, given the relatively low number of properties of this valuation in Scotland, whether this is really about revenue raising or political point scoring.”
“Given that the housing emergency in Scotland will be two years old in May when the Scottish elections are held this was an opportunity to offer a coherent, well-constructed strategy to deal with the shortage of homes. But with no additional help for housebuilders (where newbuild starts are also at a decade low level) or for the private rented sector (PRS) which is an integral part of resolving the housing emergency this is missed opportunity.”
“What has been offered here is more of the same short-termism with little concern for where the housing sector will be in five years-time. What was required was greater engagement and involvement with those directly involved in the property sector to create a plan that will grow all parts of the housing sector providing homes for buyers, properties for private renters, and houses for social tenants.
“What is required is a shift away from the limited five-year electoral cycle of decision making to a system which sees housing in a ten-to-fifteen-year timeframe encouraging continuous, strong, and organised growth across all tenures to meet demand. This Budget did not deliver the change required so we shall inevitably see more of the same problems in the housing sector in the future.”