David Alexander, the CEO of estate agency DJ Alexander Scotland, expressed concern to The Times that Findlay’s approach was risky. He noted that previous attempts at implementing zero-deposit mortgages had ended poorly.
Alexander explained: “House prices fluctuate, and without any buyer equity, individuals could quickly find themselves in financial distress. These types of policies can lead to an initial surge in prices, which may eventually result in a boom-and-bust cycle, especially if interest rates increase, or if there are job losses or personal issues like marital breakdowns. This could, in turn, cause a spike in repossessions.”
Findlay has responded to critics by saying that while he appreciates feedback, he remains committed to introducing bold ideas to address the housing crisis. He emphasised that these mortgages would only be available through a government scheme for tenants with a solid history of paying rent on time.
Alexander was more supportive of Findlay’s intention to eliminate the “socialist rent controls” established by the SNP. As part of a £90 million plan, Findlay also proposes increasing the threshold at which the Land and Buildings Transaction Tax (LBTT) is applied, from £145,000 to £250,000.
Alexander agreed that bringing the tax in line with England is “the only fair approach” for Scottish homebuyers and supported the push for a more efficient and faster process for planning and building warrants.
