Press Releases

• Today at their annual conference, the Scottish Property Federation (SPF) argues that property is central to growing Scotland’s economy 
• Scotland should be an attractive proposition, well placed to take advantage of investment opportunities but this requires collaboration with the private sector and strong economic leadership 

• But only if the Scottish Parliament goes further in restoring investor confidence, unlocking some £3bn in investment and 15,000 new homes. 

Deputy First Minister Kate Forbes MSP addresses SPF Annual Conference

At its 17th Annual Conference held today with 300 delegates attending , the Scottish Property Federation (SPF) argue that property remains central to growing Scotland’s economy and attracting investment ,but only if the Scottish Government to seeks to restore investor confidence.  

The call comes as the Scottish economy faces a pivotal moment with a flatlining economy and a declared housing emergency. The real estate sector has significant potential to contribute to boosting the economy and supporting the delivery of homes of all tenures, but it needs the right platform for investment. 

Within the context, housing delivery and wider commercial development has a key role to play in facilitating Scottish urban regeneration, yet such delivery has never been more challenging as developers struggle with rising costs that are creating a viability gap for development projects. This has not been helped by a political climate where despite some positive recent announcements from the government, investor confidence has plunged over six years of uncertainty, especially in the delivery of new private rented homes, including at mid-market rates, as evidenced by a 45% reduction in build to rent construction activity from an already low level. Scotland has under 4000 new purpose built private sector rental homes, while England has delivered and diversified over 110,000. 

In order to create a positive investment climate, the Scottish government needs to move quickly with its proposed amendment to its Housing Bill to propose an investible rent control Bill and exemptions from its planned rent control mechanism in order to support new build homes at market and mid-market rents and decisively quash any proposals to extend rent controls beyond sitting tenants.  

In addition, further clarity is needed around the introduction and operation of the proposed building safety levy, and to reform and improve the incentives for commercial developers to rejuvenate older vacant buildings rather than burden investors with punitive empty rates charges which are simply a barrier to investment. 

The role property has to play in strengthening Scotland’s economy is further reinforced by research carried out by Strathclyde University’s Fraser of Allander Institute. This demonstrates that the sector contributes an extra £73m to the wider economy for every £100m spent on Construction Projects.  In addition, for every 100 jobs directly involved in those new Construction Projects, a further 85 new jobs are created in the wider economy.  

The conference, which convenes tomorrow, will feature a range of speakers including Deputy First Minister, Kate Forbes MSP, Sir John Curtice, the Minister for Housing, Paul McLennan MSP, Shadow Business, Economy and Fair Work spokesperson Daniel Johnson MSP (Scottish Labour Party) and the Leader of Glasgow City Council, Cllr Susan Aitken. 

Stuart Oag, Chair, Scottish Property Federation, said:  

“Ahead of our conference we are yet again highlighting the critical role property has to play in growing the Scottish economy and attracting investment into Scotland. This is even more crucial in an increasingly volatile global investment climate and following six years of relative uncertainty. Now we must do all that we can to extoll the virtues of investing in Scotland. This can only happen if the Scottish government acts decisively to restore investor confidence.  

This has to include creating aspirational property polices which are matched to market reality, creating a decision-making and regulatory framework which is both predicable, yet flexible enough to respond to changing events, and fixing the flaws in the Housing Bill which are currently stymieing the development of thousands of new homes and the deployment of £3bn in investment."