Co-operatives UK calls on Scottish government to strengthen co-operative housing sector in upcoming Housing Bill

Co-operatives UK has been working with its members to respond to the Scottish Parliament’s Housing Bill and sees the new bill is an opportunity for Parliament to support and strengthen Scotland’s co-operative housing sector.

The trade body has also been working with Ariane Burgess MSP, who has tabled key amendments on its behalf to exempt housing co-operatives from Additional Dwelling Supplement and the Land and Buildings Transaction Tax.

Ariane Burgess MSP has also tabled an amendment to place a duty on the Scottish Housing Regulator to support housing co-operatives. 

These amendments are a final opportunity for Scottish Government to use the Housing Bill to unlock the power of co-operatives to deliver secure, affordable and democratically owned homes.

On Tuesday, MSPs will be voting for the last time on the Housing Bill. This offers one last chance to secure crucial amendments to the bill to strengthen housing co-operatives here in Scotland.

Write to your MSPs

Co-operatives UK is calling on its Scottish members to write to their MSPs to highlight the importance of these amendments.

How to contact your MSPs

• Enter your postcode to find your Constituency Member of the Scottish Parliament (MSP) and your regional MSPs
• Use the template letter below to email your MSPs urging them to support these crucial amendments
• Share any response with the Co-operatives UK Policy Team by emailing [email protected] 

Scotting Housing Bill – template email

Dear [insert name] MSP 

I am writing to you as a [co-operative/community business/passionate supporter of co-operatives], 

With Scotland facing a housing crisis, we know co-operatives are crucial to ensuring people have access to safe and affordable housing. Co-operatives deliver affordable rent, good quality housing and allow tenants to own their own homes through shared democratic ownership. From West Granton Housing Co-operative to the newly formed Glasgow Student Housing Co-operative, co-operatives in Scotland are stepping up but continue to lag behind most of Europe.  

In Scotland, co-operatives come in two forms both of which are currently disadvantaged: 

• Fully Mutual Social Landlord Housing Co-ops face a regulator who issues guidance without regard for the fully mutual co-operative model which was pioneered in Scotland but has now shrunk to just 7.
• Private Housing Co-ops, including student housing co-ops, are not-for-profit, asset locked, democratic and mutually purposed. The model offers private renters a unique combination of affordability, security and control and has huge untapped potential to fix Scotland’s multiple and converging housing crises. Yet Scottish Government persists in charging the members of these co-operatives the 6% Additional Dwelling Supplement (ADS) on LBTT when they propose their home, for no other than because they are doing so through a corporate structure. Members of a co-operative have no option but to cover this charge through higher rents. Co-operatives UK estimates this adds up to 12% on the monthly rent in Housing Co-operatives. This is inherently unfair when people choose to buy their home through an asset locked democratic controlled entity like a co-operative are taxed when if they bought themselves as individuals they wouldn’t face such barriers. 

The Housing Bill, however gives Parliament the opportunity to support and strengthen Scotland’s Housing Co-operative sector, therefore we are urging you to support amendments: 

113, 114, 337 in the name of Ariane Burgess and amendment 304 in the name of Paul Sweeney. 

Thank you for taking the time to read we hope we can count on your support in strengthening housing co-ops here in Scotland.