The upcoming Scottish Budget is being urged to provide comprehensive support across the housing market, including targeted assistance for landlords. With the housing emergency in Scotland approaching its second anniversary in May, experts highlight the need for policies that stimulate housebuilding, support the private rented sector, and address social housing shortages.

Urgent Need for a Holistic Housing Strategy

David Alexander, chief executive of DJ Alexander Ltd, emphasises that current policy measures have not delivered sufficient new homes to meet demand. Housebuilding in Scotland remains at a 12-year low, intensifying pressure on the private rented sector and leaving social housing waiting lists at record levels.

For landlords and letting agents, this situation means increased demand for rental properties, but also potential challenges related to supply constraints and regulatory changes. Alexander stresses that the Scottish Government has an opportunity to outline a five-year strategy addressing these critical issues, including boosting investment in the private rented sector and expanding social housing provision.

Supporting the Private Rented Sector

One key recommendation is for the Scottish Budget to avoid implementing the recent 2% tax increase on landlords’ and property investors’ income, as announced in the Westminster budget. Alexander suggests that omitting this tax rise would signal Holyrood’s commitment to making Scotland a more attractive environment for private investment in rental properties.

For landlords, this could mean improved financial viability and greater incentives to maintain or expand their portfolios. Encouraging investment in the private rented sector is essential to increasing rental supply, particularly in high-demand areas where availability remains limited.

Addressing Social Housing and Homelessness

Alexander also highlights the critical need to build tens of thousands more social homes to reduce waiting lists and tackle homelessness, which remains at record levels in Scotland. For landlords, this points to the importance of a balanced housing market where social and private rented sectors complement each other to meet diverse tenant needs.

Without significant investment in social housing, the pressure on the private rented sector is likely to continue, potentially leading to increased rents and competition for available properties.

Rising House Prices and Market Pressure

Recent analysis reveals that average house prices in Scotland increased by £33,976 between November 2020 and October 2025, rising from £157,849 to £191,825. Some areas, such as East Dunbartonshire, saw even sharper rises of over £62,000, while Aberdeen was the only area to experience a price decline.

For landlords, these rising property values reflect a strong housing market but also underline affordability challenges for prospective homebuyers. This dynamic can increase demand for rental accommodation, reinforcing the need for policies that support landlords and encourage new rental supply.

Long-Term Planning Beyond Electoral Cycles

Alexander calls for the Scottish Government to move away from short-term, five-year electoral cycles and adopt a longer-term planning horizon of 10 to 15 years. Such an approach would provide greater stability and predictability for landlords, investors, and developers, facilitating sustained growth in housing supply and investment.

Implications for Landlords and Agents

The proposed measures in the Scottish Budget have direct implications for landlords and letting agents operating in Scotland. Supportive fiscal policies, such as withholding tax increases on rental income, could improve profitability and encourage portfolio growth. Meanwhile, increased housebuilding and social housing investment may help alleviate market pressures that currently challenge landlords.

Landlords should monitor budget developments closely to understand how changes might affect rental demand, property values, and regulatory environments. Agents can also play a vital role in advising landlords and tenants on market trends and government initiatives.

Looking Ahead: TLA’s Trusted Partners Hub

In related news, the Tenant and Landlord Association (TLA) is launching a new Trusted Partners Hub in Q1 2026. This platform will feature verified and approved service providers to support landlords, tenants, and property management businesses. Legal, trades, insurance, financial, mortgage, tenant screening, and other service providers are invited to register their interest to join the hub.

This initiative aims to enhance the quality and reliability of services available to landlords and agents, supporting effective property management and tenant relations.