Property industry heavyweights say that the Scottish parliament will need to address several concerns for the industry, after the results this morning.
The SNP is celebrating winning a comfortable third victory but falls short of winning enough seats to form a majority government.
While Labour has been pushed into third place by the Scottish Conservatives, Greens overtook the Lib Dems in third place.
The new government will have to address key issues affecting the business community, including business rates, a proposed planning reform which was built into the SNP’s manifesto and a proposed new land tax on vacant and derelict land.
David Melhuish, director, Scottish Property Federation, said: “Larger properties in Scotland are paying more business rates than anywhere else in the UK. This is a major concern. When you factor in the empty rates changes that came into effect in April this is already having an effect. Schemes are being pulled or reduced and we are starting to see demolition of sheds. Staying competitive is our big concern.”
A wide ranging business rates review is currently being undertaken by Ken Barclay and the results are due in summer 2017.
Melhuish added: “We have been told everything is on the table in terms of the business rates review. In terms of the proposed planning reforms by the SNP, we hope to see a more streamlined system and more of a hook up between local and regional plans.”
Bruce Murdoch, partner at Graham and Sibbald’s Aberdeen office, said the property market sought “stability” and cited wider political issues likely to threaten this.
He said: “Although a bit of a cliché what we don’t want to see is prolonged uncertainty. Which in terms of the Scottish market would involve outcome of Brexit vote and the prospect of another early referendum on independence.
“In the case of a referendum on the basis of last night’s results this would appear to be a more distant prospect although like everyone else the outcome of the Brexit vote is still awaited.”
He added: “However from an Aberdeen perspective it is the price of a barrel of oil that matters.”
David Davidson, managing director, Cushman & Wakefield, agreed that the lack a clear majority for the SNP might dampen prospects of another Scottish Referendum, and lead a period of stability against which occupiers and investors can make reasoned decisions.
But he said, politics now needed to take a “back seat” so Scotland could benefit from the general improvement in the UK regional economies.
Davidson added: “Hopefully the Scottish government will now focus on their stated priorities to drive jobs growth and investment, and commercial property can play its important role through improved confidence in funding and development.”
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