There has been little discussion to date about how Scottish independence would affect landlords and tenants in the private-rented sector (PRS).

The PRS now represents more than 12% of housing in Scotland and over 20% of the housing in Edinburgh, having grown significantly in the past twenty years, and the Scottish Government’s 670-page White Paper on the referendum devotes just over two pages to housing, focusing mostly on the social housing sector, housing benefit and energy efficiency.

James Kelly, Scottish Labour MSP for Rutherglen and Shadow Cabinet Secretary for Infrastructure, Investment and Cities Strategy, advised the National Landlords Association (NLA) that: “A report by Jones Lang LaSalle has shown that house builders believe independence will lead to less construction, combined with uncertainty over the currency and central bank of a separate Scotland, this means less investment in the sector.”

The White Paper states: “Full flexibility over our budgets will enable future Scottish Governments to broaden action to make more affordable housing available to meet housing need and tackle fuel poverty. Removing constraints placed on us by the Westminster Government will open up opportunities for action to further improve the quality of housing, for example in the social rented sector….independence will enable a regulatory approach that is tailored to specific Scottish conditions.”

Mr Kelly however is concerned about further uncertainty over welfare and he sums up the concerns of the anti-independence camp by saying: “The PRS under devolution shows Scotland has the best of both worlds, with distinct housing legislation delivered in Holyrood, combined with the security and investment which comes from being part of the larger UK economy.”

To date, devolution has enabled the Scottish Government to replace Stamp Duty Land Tax with a new progressive tax (Scottish Land and Buildings Transaction Tax), the rates for which will be announced ahead of its introduction in April 2015. A Scottish rate of income tax has also been approved by Westminster, to be introduced in 2016 regardless of the referendum outcome. However uncertainties over currency, the credit rating of an independent Scotland, and the extent to which links with the Bank of England will limit Scotland’s ability to set interest rates, remain key concerns for landlords, with less than 60 days until the vote.