Malone predicted lenders altering their affordability calculators in Scotland and interest-only borrowers struggling to remortgage.
The Scottish housing market will be hammered by major hikes in council tax on top of an optional 3% increase coming into force in April – stunting how much can be lent and slowing down transactions.
That was the view of ex-PMS chairman John Malone.
Malone, who lives in Glasgow, has been notified that his council tax will increase by 17.5% in April, not including the 3%, while others are said to be charged 22.5% more than last year.
Malone predicted lenders altering their affordability calculators in Scotland and interest-only borrowers struggling to remortgage.
He said: “The SNP has absolutely hammered the housing market here in Scotland; they do not realise the damage they are doing and haven’t thought this through.
“They will blame Brexit but that’s not the issue; it’s their taxation of the man in the street.
“That is going to crucify the housing market and lending opportunities in Scotland.”
He added: “I’ve already spoken to one major lender that says it will impact their affordability calculator.
“The level of mortgage you can get will be reduced in comparison to England – that will slow the housing market down.
“It will have a significant impact on any lender looking at 90% or 95% loan-to-value.
“And as a property prisoner you’ll be even more of a property prisoner in Scotland.”
Malone reckoned those with homes worth more than £250,000 will be affected.
Meanwhile anyone earning more than £43,000 will be charged a 40% rate of income tax, meaning they will pay more than anyone in England.
