The company’s CEO, David Alexander, stresses the urgent need for governmental action, including stimulating private sector building, expanding social housing, and revising the Land and Buildings Transaction Tax (LBTT) to support homebuyers.

With both Edinburgh and Glasgow recently declaring a housing emergency, and Argyll and Bute declaring earlier in the year it is clear that the housing sector needs immediate and substantial support. Record levels of homelessness, enormous demand for private rented sector properties, and the lowest number of all sector new build housing starts since 2015-16 means that all parts of the housing sector need help and support.

New housebuilding starts in the financial year of 2022-23 were at 18,890 while the figure for the second quarter of this year was just 4,268 which is a reduction of 25.5% on the same quarter in 2022.

Mr Alexander commented: “The next Scottish budget needs to encourage growth in the housing sector by creating a benign environment in which housebuilding companies increase the number of homes they develop. The volume of homes in the social housing sector needs to be increased by tens of thousands a year for at least the next decade.

“There must also be greater encouragement given to homebuyers through matching with England the price at which first time buyers can purchase a home and standardising the rate of LBTT to match the rest of the UK which would stimulate the market at a time when it is flattening. In addition, greater support for the private rented sector is essential if the current housing emergencies in our two largest cities are to be tackled.

Mr Alexander points out the stagnant growth in social housing since 2007, with only a marginal increase from 607,000 to 608,000 properties in 2020.

“Clearly supply has not kept up with demand for a very long time and this needs to be addressed immediately. New housebuilding starts across all social sector housing in 2022-23 were 4,026 which is their lowest level since 2014-15,” he pointed out.

He continued: “In the private sector the latest housebuilding starts are broadly in line for 2022-23 with the previous year but are still 13.9% lower than the pre-pandemic year of 2019-20. We need to encourage more housebuilding in the private sector to keep up with demand. Greater supply will also ease rising house prices.

“Politicians always talk of fairness, and that those with the broadest shoulders should bear the greatest burden, but we can see that income taxes in Scotland increasingly target those who would not traditionally be regarded as wealthy and property taxes unfairly hit first time buyers harder than in the rest of the UK.

“First time buyers are punitively charged at a much earlier level than their English counterparts with the tax starting at £175,000 compared to £425,000 in England and Wales. Equally the 10% rate of property tax is charged from £325,001 in Scotland while this rate isn’t achieved south of the border until properties are worth more than £925,000.

“Many people can afford to buy properties worth £325,001 yet would never regard themselves as wealthy. We now have a remarkably high burden of property taxation being placed on the shoulders of middle earners which includes teachers, nurses, office workers and others.”

In conclusion, Mr Alexander stressed: “Addressing the chronic housing shortages in the social and private rented sectors is crucial if we are to reduce the terrible levels of homelessness.

“Equally we need to develop and environment where housebuilders want to build and create a home owning society which is encouraged by national and local government.

“While no-one doubts that this will be a tricky budget building growth in the economy must be the first step to resolving many of the current issues faced by the housing sector.”