The Scottish government’s ‘flippant disregard’ for the private rental sector will only exacerbate the housing crisis, warns industry group Propertymark, which wants an urgent review of landlord taxation.
It has written to Deputy First Minister John Swinney (pictured, left) about his decision to increase the Additional Dwelling Supplement from 4% to 6% in December as part of Land and Buildings Transaction Tax on additional properties.
Propertymark believes the tax burden is crippling landlords, citing examples such as the withdrawal of tax relief on mortgage interest costs and replacement with a 20% tax credit, Capital Gains Tax for rented property being maintained at 28%, and a rise in corporation tax to 25% this year. Meanwhile rents have been capped under the Cost of Living (Tenant Protection) (Scotland) Act.
Supply of private rented property is the number one concern for Propertymark members, their tenants and landlords, says CEO Nathan Emerson (main picture) who adds that the government needs to drastically improve the way that it values the PRS.
Flippant disregard
“If it continues with its flippant disregard, investment will only further decline, and rent will continue to rise,” he explains.
“We ask the Scottish government to urgently listen to our calls to revert its decision to increase the Additional Dwelling Supplement and generally review taxes for landlords.”
Propertymark has urged it to boost the supply of rented housing and reduce rent rises by not only reducing the surcharge on additional homes to encourage further investment, but to also launch a wider review of all taxes relating to private landlords.
“By reducing costs for those wanting to invest in the sector, it would help reduce rent for tenants, lead to longer-term tenancies and make it more affordable for renters,” it says.
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