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Home REAL ESTATE

New housing plan criticised for overlooking crisis in rental sector

Property Industry Eyeby Property Industry Eye
September 3, 2025
Reading Time: 3 mins read
in REAL ESTATE, UK&IRELAND
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Màiri McAllan

The Scottish government has unveiled its Tackling Scotland’s Housing Emergency strategy, with a new commitment to invest up to £4.9bn over the next four years to bring empty homes back into use, increase affordable housing supply, and address issues like damp and mould.

Cabinet secretary for housing Màiri McAllan commented: “Tackling the housing emergency will be a cornerstone in our efforts to achieve the Scottish Government’s key priority of eradicating child poverty. I am determined this action plan will deliver positive and lasting change.

“At the heart of my mission is ensuring children are not spending time in unsuitable accommodation or long periods in temporary accommodation; that the housing needs of vulnerable communities are met and that we create the optimum conditions for confidence and investment in Scotland’s housing sector.

“Our efforts so far since declaring a housing emergency have seen 2,700 families with children into a permanent home, up to December 2024. Our action plan will see tens of thousands more families have a place they can call home.

“Since I took up the role of Cabinet Secretary I have listened to calls from the sector for multi-year funding to give housebuilders more long-term certainty. Today I have committed to investing up to £4.9 billion in affordable homes over the next four years. This long-term certainty and increase in funding will support delivery of around 36,000 affordable homes and provide up to 24,000 children with a warm, safe home.

“We cannot tackle this emergency alone though and I need everyone from across the private and public sector to pull together and deliver this plan to ensure everyone in Scotland has access to a safe, warm and affordable home.”

While parts of the plan have been welcomed, critics argue it fails to address major challenges in both the social and private rented sectors.

The decline in new social housing and a lack of support for private landlords are key concerns, according to Propertymark. Despite acknowledging the need for improved housing standards, the organisation says the plan does little to support individual landlords – who provide the majority of homes in the private rented sector.

Timothy Douglas

Propertymark says that continued legislative pressures and rent control policies risk pushing landlords out of the market, further constraining supply and worsening conditions for tenants.

Commenting on the publication of the Scottish government’s Housing Emergency Action Plan, Timothy Douglas, head of policy and campaigns at Propertymark, said: “Whilst a focus on tackling empty homes and more affordable housing as well as increasing standards for damp and mould are welcome, new social rented sector housing completions are down by 26% and the SNP Government continues to fail to recognise that the vast majority of private rented sector homes are provided by individual landlords. These are people who are being disincentivised to stay in the market or invest as housing providers because of burdensome legislation and damaging rent control measures.

“The Cabinet Secretary referenced the Housing Investment Taskforce recommendations for build to rent and mid-market exemptions to rent control. The Taskforce also recommended a review of property taxes which if reduced can make it more affordable for people to move up and down the housing ladder but also bring down the cost of renting as the tax burden is reduced for landlords. If the Scottish Government is serious about bringing down the cost of renting, then Scotland needs a taxation system that allows for housing mobility and where landlords can invest in improvements without having to significantly raise rents and pass costs on to tenants.”

Read the orginal article: https://propertyindustryeye.com/new-housing-plan-criticised-for-overlooking-crisis-in-rental-sector/

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