Letting agents have called for a shake-up of PRS policy and tax reforms in the run-up to the Scottish and Welsh elections.

Propertymark wants the next government in Scotland to reduce the cost of renting, build more social housing, focus on construction and trade skills, limit carbon emissions from buildings, and provide more opportunities for people to move up and down the housing ladder.

It suggests that ministers could introduce a model similar to the Residential Tenancies Board in the Republic of Ireland, which is nationally funded and includes a monitoring purpose, an analytical purpose (including reviewing reasons for rent increases in certain areas), and a compliance and enforcement function.

Its manifesto ahead of elections on 7th May sets out what the next Scottish and Welsh governments should do to support stable, affordable and functioning property markets.

Abolition

It also calls for the abolition of the 8% Additional Dwelling Supplement, a review of the Land and Buildings Transaction Tax thresholds and unfreezing of LHA and re-linking it to local rent levels.

In Wales, it supports integrating Rent Smart Wales and other official data in the Welsh Housing Survey but wants the next government to prioritise investment in the survey and to bring it forward from 2029. It adds: “While Rent Smart Wales operates from Cardiff City Council, there does not appear to be any political scrutiny function evaluating its work other than as part of ad-hoc inquiries and questions from the Senedd. The work of Rent Smart Wales would be enriched if they produced a public annual report into its performance with direct scrutiny by the Senedd rather than on an ad-hoc basis.”

Propertymark believes the current tax regime, including the Additional Dwelling Supplement, is a significant disincentive for landlords and investors in Wales, leading to a shortage of rental homes and increased rents. “To make homeownership more affordable and stimulate the housing market, the government should explore gradually phasing out Land Transaction Tax on property purchases over 10 years following the next election.”

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