Why John Swinney’s ‘rent trap’ plan won’t solve the housing crisis

David J Alexander says money underpinning the policy would be better spent on encouraging more housebuilding in Scotland.

At the SNP Spring conference at the weekend First Minister John Swinney pledged that, if his party wins the election this May, he will create a £100m First Homes Fund. This would, from 2027, continue am earlier pilot programme to fund deposits of up to £10,000 for more than 10,000 homes.

He said that this would help to counter the “rent trap” that many Scots find themselves in where they are unable to save for a deposit while living in rented accommodation. He explained: “It is a trap, leaving them locked out of home ownership, often well into their thirties.”

Eye-catching though this pledge is the Scottish Government’s own data shows that the premise of his argument isn’t actually true, and Mr Swinney seems to be providing a solution to a problem that doesn’t exist.

Far from there being a slowdown in first-time buyer (FTB) activity it has actually been accelerating. Purchases by FTBs in Scotland reached 9,350 in the third quarter of 2025 (the latest period for which there is data) which is the highest total since Q1 2022. In the year to Q3 2025 there were 33,630 new mortgages advanced to FTBs which represents 43.7 per cent of all mortgage advances.

His argument that people are locked out of home ownership until well into their 30s is belied by the government’s own statement that the average age of a first-time buyer in Scotland is around 30-31 which is the youngest figure in the whole of the UK.

This is a proposal which sounds like it should be resolving an issue but is at odds with the reality of the housing market and first-time buyers in Scotland. Indeed, there is an argument to say that rather than helping people get their first step on the property ladder this is a misguided interference in the housing market which could make things worse for the very people it seeks to assist.

Providing loans (while this money is given to buyers when purchasing it must be repaid once the property is sold) to young buyers may sound attractive but has the potential to slow down the market as FTBs would have less funds for their next home which could delay by years someone wanting to move.

Of more value would be to use the £100m to encourage more housebuilding in Scotland. The number of newbuild starts is at an 11-year low so it is essential that the sector is encouraged to increase their activity immediately to meet the current and future needs of the market. In the long term, building more homes reduces prices making homes more affordable and stabilises the market by meeting demand.

This is clearly a policy aimed at the forthcoming Scottish elections in May. The risk is that while it may superficially seem attractive and positive it doesn’t really resolve the underlying issues in the Scottish housing market.

We have a housing emergency at the moment and this policy – which won’t start for well over a year – does not exactly indicate a government desperate to resolve the current needs of Scotland’s homebuyers or tenants. We need action now across all sectors and for all parts of the housing market.