Scottish Property Federation responds to Scottish Budget

Commenting on yesterday’s Scottish Budget announcement, David Melhuish, director of the Scottish Property Federation said:

“Overall there are two key incentives for development and investment that we are pleased to see retained in the Scottish Government’s Budget.  These include the business growth accelerator business rates incentives for new development and business occupiers; and the exemption from the Additional Dwelling Supplement for large scale Private Rented Sector investments, intended to support the new build to rent market.  These are important incentives to stimulate housing supply and economic growth.

“Business rates reform remains an important issue for our members and we welcome the Scottish Government’s decision not to implement the out of town supplement, which would have done little to support town centres.  This news, coupled with the introduction of a new £50m fund and the decision to cap the CPI poundage increase will be important mechanisms for encouraging diversification on our high streets and supporting hard-pressed retailers and others.

“On the issue of the LBTT changes affecting non-residential properties, we regret the removal of the marginal advantage which was offered to Scottish commercial investments.  In a time of uncertainty, this is yet another cost that will impact pricing and investment decisions negatively.”