The Scottish Budget has been approved with a key focus on housing investment and higher buy-to-let taxes.
The Scottish Parliament has approved the 2025-26 Budget, allocating more than £15bn to local councils and increasing investment in affordable housing.
But while the spending plan includes significant funding for infrastructure and measures designed to tackle Scotland’s housing crisis, the Scottish government has faced criticism from the private rental sector over increased buy-to-let taxes.
Finance secretary Shona Robison said: “I am pleased that Parliament has approved the Scottish Government’s Budget – confirming plans to invest in public services, lift children out of poverty, act in the face of the climate emergency and support jobs and economic growth.
“This is a Budget by Scotland for Scotland. We are delivering a universal winter heating payment for the elderly, providing record funding for local government and increasing investment in affordable housing.”
However, the decision to increase the Land and Buildings Transaction Tax (LBTT) surcharge on buy-to-let purchases from 6% to 8% has sparked concern among landlords and industry bodies.
Timothy Douglas, head of policy and campaigns at Propertymark, commented: “Propertymark welcomes the investment in affordable housing and money for the Heat in Buildings programme to help more people install clean heat and energy efficiency measures in their homes.
“However, we do not agree with the Scottish Government’s decision, through the Budget process, to increase taxes when purchasing buy-to-let property from 6% to 8%.
“The Scottish government’s Budget has failed to implement policies that can help meet the demand for private rented property and with Scotland’s landlord taxes now the highest in the UK, this will do nothing to tackle Scotland’s housing emergency and reduce rents for tenants.”
With buy-to-let landlords facing higher purchase costs, there are widespread concerns that the supply of much-needed rental properties could fall in the near future.
