Pav Masutes, Founder of Masutes Group, shares his perspective on why Scotland needs smarter, fairer housing regulation – not heavier rules – to restore affordability, support ethical investment, and put homeownership back within reach of working families.

For years, the “Great Scottish Dream” of homeownership has felt more like a mirage for young people and hardworking families.

Despite steady incomes, the ladder has been pulled up by a combination of rising prices and deep-pocketed investors – both national and international – who outbid locals at every turn.

The recent Scottish Budget, while controversial in the property sector, signals a necessary shift. By increasing the Additional Dwelling Supplement (ADS) to 8%, the government is finally addressing a market that has been “non-regulated” for too long.

The Affordability Paradox

One of the most “bizarre” realities of our current system is the assessment of affordability. We see families who have successfully paid £1,200 in rent every month for a decade, yet they are rejected by banks for an £800-a-month mortgage.

There is currently no “reward” in a credit file for being a diligent tenant. While the budget attempts to level the playing field by taxing second-home buyers, we also need a regulatory revolution in how banks view rent. If you can afford to pay a landlord’s mortgage plus profit, you can certainly afford your own.

A Call for “Right” Regulation

Professional landlords often argue they aren’t the problem, but rather the solution to a lack of social housing.

While it’s true that private capital has filled a gap left by government underfunding, we have also seen the rise of “opportunistic” landlording. In cities like Edinburgh, where 60+ people might bid for a single rental, the power imbalance is staggering.

We should welcome regulation that mirrors the Financial Conduct Authority (FCA) style – focusing on ethics, moral obligations, and safe environments. A home is a basic human right – a fundamental need for shelter and safety – not just a line item on a profit and loss statement.

Government Role in Economic Growth & Policy

​The government must play a more proactive role in fostering an environment that welcomes foreign investment into Scotland, specifically by supporting SMEs and local businesses.

We believe that current policies could be more effective if the government moved away from a “top-down” approach and instead integrated professional entrepreneurs and experienced landlords directly into their policy departments.

By treating these individuals as subject matter experts, the government could ensure that housing and economic regulations are grounded in real-world experience. This collaboration would help balance the need for regulation with the necessity of maintaining a healthy, attractive market for investors, ultimately benefiting the Scottish economy as a whole.

The “Water” Principle: Advice for Investors

To my fellow investors: change is rarely easy, but it is inevitable. I often say that “money is like water”—it is a current. If one path is blocked by regulation, it will find a new way to flow.

Rather than fighting every change, professional investors should look toward different asset classes. We have seen the friction caused by short-term lets in tenement buildings, where families share communal spaces with a revolving door of strangers.

The move toward purpose-built holiday accommodation and supporting our historic 200-year-old B&B industry is a way to stay profitable while respecting the community.

The Path to Prosperity for All

The government’s allocation of £600 million for affordable housing may be seen by some as “too little, too late,” but it is a step in the right direction.

When we lower the barrier for first-time buyers and regulate the “outbidding” culture, we create surplus income for families. That £300 difference between a high rent and a lower mortgage is money that goes back into the local economy – for holidays, education, and a better quality of life.

In the Sikh faith, we pray for Sarbat da Bhala – prosperity for all. This budget, and the regulations following it, shouldn’t be seen as a “punishment” for landlords, but as an opportunity to recalibrate.

If we can move toward a society where a normal working family can dream of owning their home again, that is a change worth supporting.