Housing isn’t my core business. My day-to-day is focused on commercial, with city centre offices, mixed-use regeneration, and unlocking value in urban land. But you don’t need to be a residential developer to see the scale of the housing crisis Scotland is facing.
It’s everywhere, unaffordable rents, overstretched services, and council waiting lists running into the tens of thousands. And, unless we start looking at the system, such as planning, infrastructure, investment and policy, we’re only ever going to be putting a fresh coat of paint on the structural problems we currently face.
Last week’s housing figures from West Lothian Council are a case in point. On paper, it’s a local authority performing well – over 1,000 new homes delivered in 2024 alone, with a quarter of those classed as “affordable”. But dig a little deeper, and you see the reality – a waiting list of over 11,000 households. That’s more than ten times the number of affordable homes delivered last year. A strong top line, but a shaky foundation.
Meanwhile, in neighbouring Midlothian, local councillors are openly warning they’re reaching the point of being ‘full’. Not because there’s no land – but because there’s no infrastructure. Roads, schools, transport, utilities are all are lagging as development outpaces the public services that should support it.
As someone who works in the commercial property world, I see this impact every day. A lack of affordable housing makes it harder for businesses to attract and retain talent. Infrastructure shortfalls limit the appeal of investment locations. If local authorities are left to shoulder the weight of planning, delivery and funding alone, it weakens the entire property ecosystem, both for commercial and residential alike. We’re all under the same roof, so when housing creaks, the commercial sector feels it too.
That’s why I was encouraged to see the Scottish Government launch a consultation into tax parity for institutional property funds particularly around Land and Buildings Transaction Tax (LBTT). I know it doesn’t sound exciting, but this is the kind of policy change that could actually shift the ground beneath our feet.
Currently, institutional property vehicles like the Reserved Investor Fund (RIF), Property Authorised Investment Funds (PAIFs), and Co-ownership Authorised Contractual Schemes (CoACSs) are treated less favourably in Scotland than in the rest of the UK. Basically, Scotland is missing out on billions in long-term, lower-cost capital from pension funds and institutional investors. Capital that could be used to fund the very regeneration, housing and infrastructure we’re so desperate to deliver.
These well-established investment structures are used across the UK and Europe to pool resources and deliver large-scale, socially beneficial projects. In England, they’re already helping fund new homes, retrofit commercial buildings, and regenerate post-industrial areas. But Scotland is quite simply bricked in by an outdated policy framework.
Bruce Patrick of MATH Real Estate put it well when he said that the scars of the 2008 crash still haunt our markets. Traditional development finance has dried up and banks are risk averse. If we want to unlock the next generation of regeneration and housing projects then the smart money must come from long-term, stable sources. That’s what these funds offer.
But they won’t invest here unless the tax regime is fair. If LBTT reliefs aren’t aligned, these vehicles will simply go elsewhere. That’s not just a missed opportunity, it’s economic self-sabotage.
The consultation from the Scottish Government is welcome, but it must lead to meaningful reform – and quickly. Time is not on our side. We’re amid a housing emergency. Councils are stretched to breaking point and developers are pulling back.
There’s no silver bullet for Scotland’s housing crisis. But there are practical steps we can take. Smarter planning, targeted infrastructure investment, and giving local authorities the support they need. And crucially, ensuring our tax policy doesn’t scare off the very capital that can help us build our way out of this mess.
If we don’t fix the investment environment, we’re going to struggle to build anything – homes, offices, or communities that work for the long term.
Let’s use this opportunity to create a policy environment with solid foundations. For homes, for business, and for Scotland’s future.
Why Shetland Should Tunnel Toward the Future
Innovation can make the difference in driving our island communities forward – and I hope the powers that be can see that to stop Scotland falling further behind our neighbours.
I read an interesting report last week which focused on the undersea tunnel system connecting the Faroe Islands – and how that could be transferred to the Shetland Islands and beyond.
The Faroese Prime Minister – Aksel Johannesen – is urging Shetland to ditch ferries for tunnels to grow the population, boost the economy and bring communities together.
And the Shetland Islands Council is taking steps to ensure they follow suit behind their North Atlantic neighbours.
They are pushing ahead with plans to build tunnels to four islands, a multi-million-pound project likely to be built on borrowed cash and paid off via tolls.
The Faroe Islands, which is a self-governing nation under the sovereignty of Denmark, has been at this since the 1960s and has built a whopping 23 tunnels to connect their 18 islands, with more still under construction.
Large infrastructure projects like this are vital for economic growth and something, in my opinion, we don’t do enough of here in Scotland. And when we do, we don’t do it nearly well enough.
And this isn’t just something we can do in Shetland; it can be rolled out all over Scotland’s islands.
Why watch on in envy? Our islands deserve the opportunity to catch up with our Scandi neighbours – who are enjoying the social and economic fruits of being more connected.
It Made Me Laugh
Trump’s Trophy Trick
As we prepare for his visit to Scotland, US President Donald Trump popped up in the most unusual place last week.
After taking in Chelsea’s Club World Cup Final win over Paris Saint Germain in New Jersey, Mr Trump presented the Blues with a replica trophy, but remained on stage for the celebrations and took the original trophy back to the Oval Office for himself.
Highly unconventional, but isn’t it always with Trump?
That said, whether you agree with him politically or not, his business acumen is clear to see, and he knows the power of sport, and the pageantry and theatre that comes with it.
It will be interesting to see how well his new golf course in Aberdeenshire fares and if he’ll be stealing more limelight!
It Made Me Weep
Postmarked for Decline
The modern world evolves at a rapid pace, especially in business, but for my money so-called progress isn’t always for the better.
I was disappointed to hear the Royal Mail is to scrap second-class post on Saturdays and only deliver it every other weekday.
While this has come about to reflect changes in the way people send and receive letters and parcels, I feel it will leave a lot of businesses in the lurch.
Many enterprises rely on the postal service for deliveries, in and out, and would struggle to afford the uncapped and unregulated first-class alternative.
This is yet another blow to the small business as government policy continues to fly in the face of local economic growth.
