What do the recent election results mean for the Scottish housing market?

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Paul Hilton, ESPC chief executive takes a look at the recent election results and considers the potential impact on Scotland’s housing market.

As many expected, the SNP secured victory in last week’s Scottish elections – but now that the party's manifesto pledges have become expected deliverables, what does its win mean for the housing market?

The SNP manifesto focused on resolving the housing emergency and making home ownership a possibility for more people across Scotland. The stakes are high, and it’s clear that the party understands this – but we need to see more from the government in order to urgently satisfy the nationwide demand for safe and affordable housing that everyone has a right to, whether they own or rent.

One of the SNP’s promises that ESPC lobbied for pre-election was the return and expansion of the First Home Fund, so I am delighted to see this set to relaunch within the first 100 days of the new government.

The fund will provide a maximum £10,000 deposit for 50,000 first-time buyers purchasing a property up to the value of £300,000, which will be a fantastic boost for those living in more expensive areas, such as Edinburgh.

We know that the demand for this fund is incredibly high (its last outing saw the pot drained in just eight days), and we hope that its restoration will see tens of thousands of prospective homeowners able to take their first steps onto the property ladder over the next five years.

There was a pledge to create 110,000 affordable homes by 2032, with 70 per cent of these made available for social rent – a critical leap in my opinion, as the market has never recovered from the volume of properties removed from the social rent pool following the introduction of Right to Buy. If it can be achieved, I think this will make a massive difference to many, but we do need to see it implemented quickly.

Current housebuilding levels need to almost double – according to recent research commissioned by Shelter Scotland, Scotland needs to build 15,693 affordable homes per year, but only 8,188 were delivered in 2025.

The SNP has pledged to enhance the planning system to speed up the housebuilding process, so everything needs to align as quickly as possible to make sure these targets are met and people can begin to feel the benefits of available affordable housing.

Another pledge to help buyers onto the ladder is the Tenant’s Right to First Refusal, which will see tenants given the opportunity to purchase their rental home off-market if their landlord chooses to sell.

There are pros and cons to this scheme, and I will be interested to see how it plays out in reality; it works elsewhere in Europe so with the right balance of landlords’ and tenants’ needs, it could be a success in Scotland too.

It’s certainly good news for tenants who may not have to deal with the challenges of the competitive market and offers-over bidding system, but landlords would rightly want assurance of receiving a fair market price.

We have seen a large volume of landlords exit the rental market in recent years, and with the lack of landlord support pledged by the SNP this time around, we may see yet more still.

It’s only the first week of the new government, but I, like many others, hope to see it hit

the ground running and begin to make its mark on meeting these targets. I will certainly be watching with a keen eye to see how things unfold in the months ahead, especially with developments to come in the Heat In Buildings Bill, mansion taxes, and the Home Report review.

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