Estate agents urge Scottish Government to rethink landlord taxes
Propertymark has told Holyrood that it must revisit any ‘taxes that dissuade potential landlord investors but favour BTR operators'
Propertymark has urged the Scottish Government to reform property taxes, warning the rental market is shrinking as landlords invest in other parts of the UK where costs are lower and regulations are less restrictive.
The call comes as the Scottish Government consults on the Housing Investment Taskforce’s recent report, which has recommended reviewing all property taxation.
The industry body is concerned that the tax breaks under discussion favour institutional investment funds, which would leave private landlords still facing higher levies, despite them providing the most rental homes.
Timothy Douglas (pictured), Head of Policy and Campaigns at Propertymark, said: “Additional taxation and the prospect of rent control areas in Scotland continue to be a huge disincentive for landlords in the private rental market.
We have consistently called for the Scottish Government to revisit any taxes that dissuade potential landlord investors.”
“It is positive that the Scottish Government is looking at measures to improve the way in which the Land and Buildings Transaction tax works for investment funds, but we have consistently called for the Scottish Government to revisit any taxes that dissuade potential landlord investors, which reduces supply and, in turn, drives up rents.
“The Housing Investment Taskforce recommended a review of property taxes, so we await Scottish Government action to open up the debate further and ensure Scotland has 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.”
Additional Dwelling Supplement
The industry body says that the biggest problem is the Additional Dwelling Supplement, which landlords pay when buying rental properties. This tax has jumped from three per cent in 2013 to eight per cent in December 2024. It argues that while big investment companies can sometimes avoid this tax but individual landlords must pay the full amount.
You can read Propertymark’s full response here.
