This piece by Rob Trotter, Director of New Business at Rettie
Scotland is in the grip of a housing emergency. As the BBC recently reported, more than 16,000 households—including over 10,000 children—are currently classed as homeless. Many are trapped in temporary accommodation for extended periods, at significant financial and social cost.
Having worked in Scottish property for over two decades, I believe the solution must extend beyond simply building more social housing—although that remains vital. We must also unlock the potential of the private rented sector (PRS) to provide long-term, affordable homes at pace.
Scottish Housing News has reported that, between 2019 and 2023, the Scottish Government spent approximately £750M on temporary accommodation. What if that same funding were used more effectively—by helping vulnerable families secure permanent homes in the private sector?
With the right support, private investors could be encouraged to refurbish and rent out low-value, long-vacant homes across Scotland. As of September 2024, there were 43,538 homes that had been empty for over six months, and 31,596 for more than a year. These properties, often in economically disadvantaged areas, require significant refurbishment and currently offer little appeal to landlords or buyers.
If local authorities could offer rent guarantees for three to five years—paired with assurances on property condition upon return—investors would be able to generate stable returns even after upgrade costs. It would de-risk the proposition, bring dilapidated homes back into use, and offer families stable, dignified housing. For the public purse, it would be a far more efficient and humane use of funds than paying for temporary accommodation.
Right now, the supply of new rental homes is almost entirely driven by circumstantial landlords—people renting out their own homes for a short period while living elsewhere. These are not long-term solutions, nor do they provide housing for those in greatest need.
The sharp decline in investor participation is due in no small part to the Additional Dwelling Supplement (ADS), now set at 8%. Originally introduced to reduce investor competition in the first-time buyer market, it has also eliminated vital investment in areas with the greatest housing need.
We need a more targeted approach. Why not reduce or remove ADS for those who commit to letting a property as a long-term primary residence, not as a second home? This would encourage investment into lower-cost housing, stimulate the purchase of new-build homes, and help developers forward-fund projects—ultimately increasing housing supply.
When ADS was introduced at 3%, investor interest remained steady. At 6%, it collapsed. At 8%, it sent an unambiguous message: landlords are no longer welcome.
This is not about rolling back tenant protections. It’s about recognising that we must act now, using every lever available, to increase the supply of homes.
If social housing cannot be delivered fast enough, homes must come from elsewhere. With collaborative thinking between private landlords, housebuilders, and local authorities—and a reassessment of our tax and incentive structures—we can begin to address the crisis at speed.
Scotland needs homes. Private investors can help deliver them—quickly, at scale, and with compassion. The question is whether we’re prepared to let them
Rob Trotter is Director of New Business at Rettie
