SNP must withdraw housing bill, say builders
THE chief executive of a major Scottish housebuilder has urged First Minister Humza Yousaf to scrap SNP and Green homes laws in the wake of the Bute House alliance collapse.
The homes builder revealed it saw a major deal collapse on the day the Scottish Government introduced rent controls, while it is now estimated £3bn in wider builtto-rent investment is put at risk by formalising the policy.
Innes Smith of Elgin-based, London-listed Springfield Properties’ story is not rare – there are many across Scotland – but it is a stark indictment and his solution is equally clear: “Withdraw the Housing Bill.”
He told The Herald: “The day the Scottish Government announced a rent freeze we immediately saw a deal to deliver 300 quality, energy efficient PRS (Private Rented Sector) houses collapse, and this investment has been lost.
“These homes were designed for families seeking homes to rent sustainably and would have eased pressure in areas of high housing demand including Inverness and Midlothian.
“This was planned as the first of many deals using private investment to enable an increase in housebuilding across multiple tenures.”
The Scottish Property Federation said that “the market needs clarity and a pragmatic policy framework on rent controls”.
Maria Francké, SPF chair, also said: “Unless we see the current rent controls proposals amended, we are in danger of Scotland losing up to £3bn of build to rent led investment.”
Humza Yousaf made housing in Scotland his first policy announcement since he cancelled the Green alliance, but the £80m to buy property for conversion was dismissed.
Sally Thomas, Scottish Federation of Housing Associations’ chief executive, responded that “with freefall in supply, this funding announcement pales in comparison to what we’ve lost and unfortunately represents little more than a sticking plaster during a national housing emergency”.
A government spokesperson said: “A fairer, well-managed private rented sector is in the interest of both tenants and responsible landlords.
“Our Housing Bill includes a package of important reforms to the rented sector that aim to improve affordability and strengthen tenants’ rights. This includes the introduction of an effective system of rent controls in the private rent sector, which will improve affordability for tenants while recognising the importance of landlords investing in property quality.
“We will continue to work with stakeholders across tenants, landlords and investors as we develop a system of rent control that works for Scotland.”
There had been alarm among many in business about the impact of the power-sharing deal on the Scottish economy, business correspondent Kristy Dorsey reported on the day the joint administration collapsed.
She writes that the agreement “included ten areas where the Greens and the SNP could continue to differ on policy” and one was “the economic principles related to concepts of sustainable growth ...”
Also this week, business editor Ian Mcconnell sat down with Alessandro Dudech, UK chief operating officer of Japanese giant UNIQLO ahead of the launch of its first Scottish store.
In another exclusive, this time from deputy editor Scott Wright, Al Denholm, new chief of the Scottish National Investment Bank, insists the state-backed institution is “not broken”.