Scotland’s landlords have warned the Scottish government that increasing property taxes will worsen the housing crisis.
This comes after UK Chancellor Rachel Reeves increased income taxes levied on property by 2% from April 2027.
The Scottish Budget will be held on 13 January 2026.
John Blackwood, chief executive of the Scottish Association of Landlords, said: “If the cabinet secretary chooses to follow the Chancellor’s lead by imposing additional taxes on Scotland’s landlords, she will actively worsen the housing crisis.
“Many landlords in Scotland are already considering reducing the size of their investment or leaving the sector entirely, taking their properties with them.
“Rather than making investment less attractive, Shona Robison should work with landlords to encourage investment to help us create a private rented sector that works for everyone.”
Scotland’s landlords are concerned that cabinet secretary for finance and local government, Shona Robison, is preparing to hammer the private rented sector (PRS) in Scotland with a similar tax when she delivers her Scottish Budget.
More property taxes would discourage investment in Scotland’s PRS, resulting in fewer properties being available to rent as landlords leave the sector, according to the Scottish Association of Landlords.
At First Minister’s Questions last week, Scottish Conservative leader Russell Findlay raised the issue, asking John Swinney if he accepted that “new tax could further damage the rental market for tenants?”
Recent policy shifts, including impending rent controls, have resulted in many Scottish landlords, 90% of which own one or two properties, reducing their portfolios or leaving the sector entirely.
The Scottish government has been urged to incentivise investment in the sector and work with landlords.