Propertymark has called for housing to remain central to the expected Scottish Labour leadership contest as Anas Sarwar prepares to leave the role for a ministerial position in Prime Minister Andy Burnham’s government.
Sarwar is expected to be elevated to the House of Lords and join the revamped Department for Business, Innovation, Science and Trade. His departure will trigger a contest to select a new leader of Scottish Labour. ITV News reported the planned appointment.
The change comes with Scotland facing acute pressure across housing supply, homelessness and temporary accommodation. The Scottish Parliament declared a national housing emergency in May 2024 and official parliamentary research confirms that 14 councils have since made local declarations.
Official figures show 18,092 households, including 10,480 children, were living in temporary accommodation at the end of September 2025. The number of open homelessness cases reached 33,006, its highest level since the series began in 2003.
INCREASE HOUSING SUPPLY
Nathan Emerson (main picture, inset), CEO of Propertymark, says: “With Anas Sarwar set to take up a new role in Andy Burnham’s government, it is vital that housing remains central to any Scottish Labour leadership contest.
“The Scottish Parliament must work to increase housing supply, review property taxation to better support buyers and landlords, oppose rent controls that reduce supply, and introduce full regulation of property agents to improve consumer protection and standards.
“With 14 local authorities having declared local housing emergencies across Scotland, there is intense pressure to deliver meaningful progress with real urgency. Housing must remain a top priority across the political spectrum, and the outcomes must be defined and measurable.”
PROPERTY TAX
Property taxation is likely to remain one area of debate. Scotland’s Additional Dwelling Supplement, charged alongside Land and Buildings Transaction Tax on qualifying purchases of second homes and rental properties, currently stands at 8%. The first-time buyer nil-rate threshold is £175,000, providing maximum tax relief of £600.
Rent regulation will also be prominent. The Housing (Scotland) Act 2025 allows ministers to designate rent-control areas following local assessments and consultation. Councils must submit their first assessments by May 2027.
Within designated areas, annual increases would generally be limited to inflation plus one percentage point, subject to a maximum of 6%, and could apply both during and between tenancies. The Scottish Government has outlined how the system will operate.
