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What the Budget means for property in Scotland

What the Budget means for property in Scotland

The Scottish Property Federation has welcomed the UK budget that went even further than even the most positive in the property industry could have anticipated. 

Whilst changes to the planning system had been expected, house building could end up being the unexpected winner from the budget with a raft of measures aimed at the private rented sector and getting more homes built. Most notably reforms to the way stamp duty is calculated on bulk purchases aims to attract large institutional investors, such as pension funds, into house building when other forms of finance, such as bank lending, have dried up.

Additionally improvements to the UK REIT regime, such as removing the 2% conversion charge, could attract new housing REITs which will also provide a much needed boost to housing investment and ultimately supply in Scotland.

David Melhuish, Director at the Scottish Property Federation, noted: “The Scottish Property Federation has called for these moves for a long time; therefore the announcements are hugely welcome. 

“The private rented sector in the rest of the UK stands at 15% whereas in Scotland it remains at around 8%.  We believe it has a much greater role to play in the residential sector, and changes to stamp duty will certainly help.

“The announcement of significant changes to the REIT regime is also welcome and opens the door to greater access to the regime for property investors.”

Commenting on the announcements of enterprise zones and a presumption in favour of sustainable development in England, David Melhuish argued these measures opened some possibilities for the Scottish Government to consider after the elections on 5th May: “Clearly it will be important to ensure that enterprise zones bring additional economic growth and do not just displace existing employment. 

“Equally while the purpose of the planning system in Scotland is to support sustainable economic growth, the focus of the UK Chancellor’s comments on making growth and jobs a priority for planning authorities in England is welcome and we feel should resonate in Scottish planning authorities too.”

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For more information or to organise an interview please contact:

Paul Sweeney, Media Assistant, on 07841 732 194 or at psweeney@bpf.org.uk