DJ Alexander has called on the Scottish Government to use next week’s Budget to support all parts of the housing sector, warning that failure to do so will prolong the country’s housing emergency.
The firm said finance secretary Shona Robison must outline measures that increase housebuilding, encourage investment in the private rented sector and significantly expand social housing provision if the crisis is to be resolved.
Scotland will mark the second anniversary of its housing emergency declaration in May, with new housebuilding across all tenures now at a 12-year low.
DJ Alexander said urgent action is needed to boost supply to meet rising demand from homebuyers, renters and those on social housing waiting lists.
David Alexander, chief executive officer at DJ Alexander Scotland, said: “This is a chance for the SNP government to set out a strategy for the next five years which must, among other policies, address the key issues facing the housing sector.
“With all sector new housebuilding numbers at a 12 year low here is an urgent need to encourage an increase in these numbers to meet the rising demand from homebuyers, whilst also increasing investment in the private rented sector, and addressing the enormous social sector waiting list.”
He added that the Scottish Budget could be used to make the country more attractive to landlords and private investors, particularly in light of recent tax changes announced at Westminster.
Alexander said omitting a planned 2% increase in landlord and property investor income taxation could encourage greater investment and ultimately increase overall tax revenues through higher levels of supply.
“There is currently an opportunity to make Scotland more appealing to landlords and private investors,” he said. “This, although it may sound counter intuitive to some, would likely result in higher revenues by attracting greater investment and more supply in the Scottish market.
“A strong private rented sector remains key to bringing more people to live and work in Scotland in major growth centres like the central belt where demand continues to outstrip supply.”
Alexander said a major expansion in social housing remains essential if waiting lists and homelessness levels are to be reduced, adding that only sustained investment in this area would offer any realistic prospect of ending the housing emergency.
He concluded: “A budget which encourages more housebuilding would be enormously positive producing economic growth which, in turn, creates jobs, good incomes, and more homes to drive up GDP.
“There needs to be a greater engagement and involvement with those directly involved in the property sector alongside the people producing the strategic policies.
“There also needs to be 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 which encourages continuous, strong, and organised growth to meet demand.”
