To begin with, Scotland is less likely to see the more drastic changes that have been promised in England. In Scotland, housing laws are devolved to the Scottish government, including rent caps, planning law and LBTT, therefore the changes that Labour have pledged will not directly impact the policies and laws that dictate the conditions of the Scottish property market.
However, in time it is to be expected that the decisions made by the new Labour government will influence those made by the SNP Government. Given the success of Labour’s campaign in the General Election, one can assume that many of their pledges have been popular with a sizable percentage of the Scottish public. Therefore, the SNP may feel obliged to replicate or produce certain alternatives to ensure purchasing a property in Scotland does not become unattractive, compared to buying in England. These changes are most likely to take shape in the next few years as we move towards the Scottish Parliament election in 2026.
In the longer term, with the new Labour Government, we are hoping to see more financial stability in the UK, which should increase general economic confidence. Interest rates are expected to continue coming down, and we now don’t predict any upcoming referendums in the lifetime of this parliament, which have previously had a big impact on the market. A stable political environment typically translates to a more predictable economic outlook, which can be beneficial for the property market. If this is the case, we should see an increase in confidence amongst consumers and investors.
Overall, the General Election results have the potential to usher in a period of positive change for the Scottish property market. With potential boosts in economic confidence, stability in market conditions, and favorable policy adjustments, homeowners and first-time buyers could see benefits in the longer term. As the new government begins to implement its agenda, staying informed about policy developments and market trends in Scotland will be crucial for making the most of opportunities in the evolving property landscape.
