Scotland is a more attractive proposition for property investors and landlords due to its favourable tax reliefs according to DJ Alexander Ltd.

Scotland and Wales are now the only two countries of the United Kingdom which have favourable tax relief on the purchase of two or more properties as these tax reliefs were removed in England and Northern Ireland in 2025.

David Alexander, the chief executive officer of DJ Alexander Scotland, said: “With the combination of MDR and purchases of six or more properties eliminating ADS this offers a greater opportunity for landlords and investors to buy into the PRS in Scotland. Rent controls ended last year and cannot be implemented until 2028 at the earliest and only after an assessment of fair value by local councils. Therefore, this may be the ideal chance for many who have held back from investing in the sector to jump into a market which is experiencing unprecedented demand. These tax reliefs could provide an ideal opportunity and financial incentive for the PRS to grow rapidly in Scotland to service the needs of thousands of tenants currently unable to find suitable properties.”

The two main methods of tax relief which benefit the Private Rented Sector (PRS) according to DJ Alexander are multiple dwellings relief (MDR) which is available for purchases of two properties or more in a single or linked transaction and the Additional Dwelling Supplement (ADS) which is usually charged at 8% but, combined with MDR, does not apply to purchases of six properties or more.