How McAllan can tackle our housing emergency

Given that housing charity Shelter Scotland recently named John Swinney’s legislative agenda a “Programme for Homelessness” it is clear that the Scottish Government must produce some positive and effective policies. More housebuilding is required, easier and quicker planning regulations, a long-term focus on addressing social housing shortages, and a much closer working relationship with the private rented sector (PRS) to both maintain existing stock and encourage greater investment.

Ms McAllan said she would act on stalled developments, which she calls an “untapped area,” and said the Scottish Government is “brokering” those issues with developers to “unlock tens of thousands of houses”.

These developments are stalled due to continued uncertainty over the Scottish Government’s direction on the private rented sector. Proposals in the Scottish Housing Bill to introduce rent controls don’t help despite proof from the Governments’ own data showing this policy results in greater costs for tenants.

The most recent statistics reveal that the Scottish Government’s intervention in the PRS – through its Cost of Living (Tenant Protection) Scotland Act 2022 which introduced temporary rent controls – resulted in rents rising at a faster rate in two years than they had in the preceding 12. Between 2010 and 2022 average rent rises across Scotland for one, two, three and four-bedroom properties were up £138; £182; £232; and £523 respectively.

In the following two years between 2022 and 2024 average rents increased by £130; £157; £230; and £333 for one, two, three and four-bedroom properties. In cash terms rents rose in two years at almost the same level that they did over the previous 12 years. These figures highlight just how destructive the Scottish Government’s intervention into the PRS was between 2022 and 2024. A major outcome of this policy has been the freezing of property investment, falling housebuilding levels, with money intended to be invested in Scotland to build more properties being transferred to other parts of the UK.

If Ms McAllan is to make an impact on the staggering levels of housing need in Scotland, then she must embrace the private rented sector. She should not interfere in the market with rent controls and should be encouraging greater investment through policies which encourage growth over the long-term through support of the PRS.

The new Housing Secretary needs to put in place a ten-year plan which addresses Scotland’s enormous housing problems. More housebuilding, more involvement and encouragement of the PRS, more social housing and a plan that ensures there are substantially more homes available in all markets in the future. With 250,000 people on the social housing waiting list, 10,000 children in temporary housing and a private rented sector which has been experiencing unprecedented demand there is an immediate need for clarity and action. Housing policy needs the involvement of all interested parties, and a strategy that looks beyond a single electoral cycle if the housing emergency is to be tackled.

David J Alexander is CEO of DJ Alexander Scotland Ltd