SCOTLAND is facing a housing shortage, possibly spanning the next 20 years, as a result of the lowest level of housebuilding since the 1940s.
Figures suggest an additional 23,000 houses are required every year, including 9,000 affordable homes.
While a raft of initiatives have recently been introduced, aimed at aiding the delivery of housing and infrastructure, do these go far enough to solve the problem and will a potential new tax on development land exacerbate the issue?
The publication of the Scottish Government’s draft Planning Delivery Advice: Housing and Infrastructure and the "More Homes Scotland" initiative announced in February 2016, suggests that the delivery of housing and infrastructure is finally being made a priority to address difficulties being experienced across Scotland.
The More Homes Scotland initiative aims to establish a flexible five-year grant and loan fund, with up to £50million available in 2016-2017 to help tackle infrastructure blockages.
While any investment is welcomed, one must question if it is sufficient to unlock the significant number of housing sites across Scotland, necessary to deliver an adequate supply of housing land.
Taking the North-east as an example, some of the larger sites identified through the City and Shire Local Development Plans could account for that figure alone, and more, to address infrastructure shortfalls.
So, with the rest of Scotland to contend with, this fund is likely to be spread thinly and one must question if it is enough to deliver what it has set out to do.
In addition to this, the recent announcement by Nicola Sturgeon of a potential new tax on development land, due to be consulted upon after the Parliamentary elections later this year, will not help the situation.
It was suggested that this would reduce land banking and increase the supply of homes in Scotland.
However, there is a real danger that the introduction of such measures, which will add an additional burden to developers and investors in Scotland, will instead stifle investment in house building further.
All this comes at a time encouragement and help is needed most.
The More Homes Scotland fund and the Planning Delivery Advice implies that it is infrastructure constraints that are delaying the delivery of new housing and not land banking as suggested by the First Minister.
Steps need to be taken to ensure that housing is delivered when and where it is needed most, with an appropriate mechanism to ensure the delivery of infrastructure.
If the ultimate aim is to deliver an adequate supply of quality housing and deliver these through the planning system more quickly, the introduction of a tax on development land is completely at odds with this.
There is a danger that it will simply suppress investment.
Overcoming the barriers to housing delivery is vital, but it is unlikely to be helped by a new tax on land.
While the planning system plays an important role in the delivery of housing through the identification and allocation of appropriate sites in the Development Plan, and the processing of applications, the planning system alone cannot solve the issue of housing supply.
A well-functioning housing market and a strong construction industry are important and inextricably linked to the delivery of housing.
Adding another tax on land, at a time when the system is failing to meet demand, will deter the construction industry further.
In turn, this will have a detrimental impact on the supply of houses, rather than increasing it.
Raising the amount of investment available to deliver housing and improving the current planning system are therefore key.
With investment slowly being introduced and the independent review of the planning system underway to address the issues of the planning system, the introduction of a new tax on development land may negate the benefits of these initiatives and any progress being made.