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14/7/25 8:13 pm
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Landlords are worried that the Scottish government is preparing to hammer Scotland's PRS with a property income tax hike in next months’ Budget.
The Scottish Association of Landlords (SAL) has issued the warning following the recent UK Budget and ahead of the announcement by Cabinet Secretary for Finance and Local Government, Shona Robison, due on 13th January.
Chancellor Rachel Reeves announced that a 2% increase in income taxes levied from property and savings will hit landlords in England from April 2027, with the same hike due for income from dividends from April 2026.
SAL believes that if the country follows the Chancellor’s lead, property income tax will discourage investment in Scotland’s PRS, resulting in fewer properties being available to rent as landlords leave the sector, worsening the housing crisis.
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?”
SAL chief executive, John Blackwood (pictured), says 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,” adds Blackwood.
SAL says recent policy shifts, including impending rent controls, have resulted in many Scottish landlords - 90% of whom own one or two properties - considering reducing their portfolios or leaving the sector entirely. It wants the Scottish government to incentivise investment in the sector and work with landlords to increase the supply of housing available.
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