Meeting of the Parliament 17 March 2026 [Draft]
Scotland has been in the grip of a housing emergency for years. Even the Scottish National Party Government acknowledged in May 2024 that that was the case, although it must be said that, almost two years later, not much has changed. House-building figures in December 2025 showed the numbers of both new-build starts and completions falling, with social sector starts hitting the lowest point since records began and affordable housing completions down by 23 per cent.
That all has real consequences. Statistics published last month showed that the number of children living in temporary accommodation was at a record high of 10,484 for the period being reported on. The number of open homelessness applications was also at a record high and rough sleeping is at its worst in two decades. That is the context in which the SNP Government is bringing forward this bill.
During stage 1 evidence, the Finance and Public Administration Committee repeatedly heard about the potential for the levy to damage an already precarious house-building sector in Scotland. The possible introduction of a levy with as-yet-unknown rates is deeply destabilising for a market that needs certainty to plan and make decisions for the long term. Across the sector, house builders are making decisions now about where and how much to build, but they cannot do that with the uncertainty of a levy hanging over them.
I place on record my thanks to Homes for Scotland and others in the sector who have engaged constructively on the bill and have supported the drafting of amendments, including some that I will speak to today.
My amendment 6 would give a firm guarantee that any construction or conversion work begun before 1 April 2028 will not be subject to the levy. It seeks to give some certainty to the sector so that house builders can get on and build now instead of choosing to sit it out for two years, waiting to see what a future Government might or might not do.
Appearing before the Finance and Public Administration Committee on 18 November 2025, the minister stated:
“the commencement date for the levy will be deferred by one year, to April 2028.”—[Official Report, Finance and Public Administration Committee, 18 November 2025; c 42.]
I believe that the amendment can be agreed to in keeping with that commitment. The minister did not support a similar amendment that I lodged at stage 2, but I hope that, in the intervening period, he will have reflected on the risks that the legislation could pose to Scotland’s already fragile house-building sector.
I turn to the other amendments in the group. I recognise that Meghan Gallacher’s amendment 7 has a similar intention to my amendment 6. I look forward to hearing the debate, and I note that, if the Government is willing to support amendment 7 instead of my amendment, I would be willing to support it, too.
Michelle Thomson’s amendments 8, 10 and 15 seek to exempt from the levy properties that are sold to first-time buyers. I trust that Michelle Thomson has met the minister since stage 2, and I hope that the Government will be able to support those amendments.
Liz Smith’s amendments 9 and 18 would exempt historic listed buildings from the levy, which we on the Labour benches would support.
Ivan McKee’s amendment 5 will require ministers to lay before the Parliament for approval a Scottish statutory instrument relating to reliefs. It is right that the Parliament should have the chance to scrutinise those reliefs, so we will support amendment 5, too.
I move amendment 6.