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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 13 April 2025
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Displaying 1063 contributions

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Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 January 2025

Ivan McKee

Thank you for raising that issue, which I know you have raised before. There have been several tweaks made over time to the eligibility process, as various issues have arisen. We can certainly look at what scope there is to address that issue.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 January 2025

Ivan McKee

The purpose of the policy is to raise revenue and rebalance the market so that people who want to buy a house to live in—first-time buyers or otherwise—have a competitive edge over those who are buying a property to let.

The data shows that the number of registered landlords is broadly flat, and the number of registered properties has increased over the past two and a half to three years, so the policy is not having an impact on that.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 January 2025

Ivan McKee

Thank you very much.

09:32 Meeting suspended.  

09:35 On resuming—  

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 January 2025

Ivan McKee

They are linked in the sense that, if you want to build new properties, there are a range of factors to be considered that are relevant to those decisions. However, at that end of the market, ADS does not apply to the purchase of more than six properties.

A typical buy-to-let landlord does not build a new property to put on the market; they buy an existing property to let it out. A property is either going to be bought by them or by someone who wants to live in it, but the total number of properties in the market stays the same.

09:30  

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 January 2025

Ivan McKee

On the build-to-rent market, transactions that involve more than six properties are excluded from ADS.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 January 2025

Ivan McKee

There is quite a lot in that question. With regard to the impact on the number of properties, clearly the number of properties in the market will remain the same. They will be owned either by landlords or by residents—that is, owner-occupiers. The trend over a number of years has been a gradual reduction in the number of second homes from 27,000 to about 24,000 since 2016-17 or thereabouts, but it is hard to ascertain how much of that has arisen as an impact of this specific measure.

There has been a 14 per cent reduction in the number of ADS transactions, but there has been an 8 per cent reduction in the overall number of LBTT transactions. The reduction in the number of ADS transactions has been slightly higher than the number of property transactions in general, but it is hard to know how much of that is due to the specific measure.

With regard to the increase in ADS from 4 per cent to 6 per cent, the SFC based its forecast on an assessment of behavioural impact, but what we have seen is that the revenue from ADS has been higher than that forecast. The SFC has used the same methodology for its projections, which suggest a significant increase of £30 million per year or thereabouts in the revenue coming through from ADS as a consequence of those changes being taken into account.

The final point to make is about the number of registered landlords and registered properties. Over the past three years, the number of landlords has been broadly similar, and the number of properties has slightly increased, so I suggest that there is no evidence that there has been any impact on the market.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 7 January 2025

Ivan McKee

It will not impact on landlords who currently own property; it will apply only when a landlord buys a property, and that cost would be factored into the economics of that investment decision. The market rent would be understood by the landlord when making that decision, so that would all be factored in.

Rent is a separate issue in terms of rent controls and the proposed legislation in the Housing (Scotland) Bill. How rent controls are tackled is a separate issue.

Economy and Fair Work Committee

Subordinate Legislation

Meeting date: 27 November 2024

Ivan McKee

It will ask for opinions on where the bands and levels should be and for the evidence to support that.

Economy and Fair Work Committee

Subordinate Legislation

Meeting date: 27 November 2024

Ivan McKee

I defer to officials on specific timing, but we plan to get the consultation launched early in the new year. It is important to remember that this is all in connection with debts that have not been paid.

09:45  

It was assessed that an equality impact assessment was not required. The impact is on people who earn less—that goes without saying. It is about getting the balance right between how much they can afford and then, coming to councils, ensuring that there is not a disincentive for payment if debts are not pursued below that level. It is important to get that right.

Perhaps Richard Dennis can comment on the timing of the consultation.

Economy and Fair Work Committee

Subordinate Legislation

Meeting date: 27 November 2024

Ivan McKee

If you express it in weekly amounts, it is not a round number, but I take your point. I will defer to Richard Dennis on the specifics of that.

You are right to a certain extent—you need to pick a number, and a round number is as good as any other number, plus it makes it easier to communicate and understand. We are making the increase from the previous amount to the lower level of £750, which seemed to be the right place to pitch it. However, you are absolutely right about the lack of data in this space, which, as Richard Dennis said, makes it difficult to be able to understand the impact of a threshold and to do a more evidence-based calculation on where we should pitch it.