SAL in the media

Scottish Budget: No worst-case scenario for landlords but a missed opportunity

By John Blackwood, SAL chief executive – guest author for Property118.com

At the time of writing, the Scottish Budget process is ongoing in the Scottish Parliament. Sectors across our economy and public sector are watching events as they unfold carefully, and Scotland’s private rented sector (PRS) is no different.

The decisions made and the negotiations had will have a significant impact on us as landlords and on our tenant customers.

While there is a lot of discussion still to happen, and Finance Secretary Shona Robison will, as is customary, have a couple of rabbits to pull out of her hat, we at SAL have had the chance to go through the Budget and draw our initial conclusions about what it means for us.

Our overall impression is that it could have been better and it could have been worse. We did not get our worst-case scenario, but there is the feeling of missed opportunity about it.

On the plus side, we are happy to see that there will be no rise in the Land and Buildings Transaction Tax (LBTT) Additional Dwelling Supplement (ADS). As investors in Scottish housing, we remain opposed to the ADS in principle. It disincentivises investment and has not been shown to work, but the fact that the government has not chosen to increase it is at least the best they can do with a bad policy.

That is where the good news ends, however.

Our members were disappointed to see that the Finance Secretary has refused to rule out following the Chancellor’s disastrous decision to impose a tax hike on income gained from property. We know from colleagues south of the border just how much of a chilling impact this has had on the mood of the market there, and that it has done nothing to prevent landlords reassessing their priorities and subsequently putting the number of homes to rent at risk.

In Scotland, we have similar concerns.

If the Finance Secretary does decide to follow her Westminster equivalent’s 2p tax hike, via a legislative consent motion at Holyrood, she will foster more uncertainty in Scotland’s PRS, adding more doubt in the minds of investors and making it more likely that they will leave the sector entirely. With many landlords already facing difficult decisions about their futures providing housing, this could not come at a worse time.

As SAL, we are clear that the Finance Secretary has an opportunity to help resolve Scotland’s housing crisis, should she be brave enough to take it.

If Shona Robison were to take the bold decision to say, unreservedly and without equivocation, that she will not increase tax on property income, she would let current and potential landlords know that their investments are secure and that now is a good time to grow their portfolios, therefore providing more homes to rent to those who need them.

We have a housing crisis in Scotland, everyone acknowledges that. We need more homes, at affordable rents and prices, available to more individuals and families. To achieve this, the Scottish Government should prioritise attracting investment from landlords. Regrettably, tax hikes hanging over us like the Sword of Damocles will do the opposite.

SAL will continue to make the case for the PRS to Scottish ministers, including the Finance Secretary and the Housing Secretary, and to explain how they can give more encouragement to investors. Our media work is also essential in this, and we are most grateful to Property 118 for agreeing to carry this regular column from me.

If you would like to hear more of SAL’s perspective on the Budget, including our view of the political aspects, be sure to keep an eye out for the latest episode of our Landlord Voice podcast, available wherever you get your podcasts.

The article can also be read online here at Property118.com, published on 28 January 2026.