Landlords and agents were united in their condemnation of a tax hike in Scottish Finance Secretary Shona Robison’s Budget.

Robison (main picture) increased the ‘Additional Dwelling Supplement’ rate on rental, second and holiday homes, from 6% to 8% with effect from yesterday.

It follows the decision by Chancellor Rachel Reeves to raise the Stamp Duty on investment properties from 3% to 5%.

The Scottish Government will invest £768 million in affordable homes, Robison said, but this wasn’t enough to avoid criticism.

They have decided to deal another blow to landlord investors.”

John Blackwood, CEO at the Scottish Association of Landlords, says: “Despite the Scottish Government admitting Scotland is in the midst of a housing emergency, they have decided to deal another blow to landlord investors by increasing the Additional Dwelling Supplement (ADS).

“Instead of encouraging new investment, they seem to be going out of their way to deter new investors from buying from the many landlords who have had enough and are opting to sell.”

Simply wrong

Timothy Douglas, Head of Policy and Campaigns at Propertymark, says: “With the huge demand for private rented property and long-term rent control measures contained in the Housing Bill, the Scottish Government’s decision to raise Additional Dwelling Supplement under Land and Buildings Transaction Tax from six to eight per cent is quite simply wrong and out of touch with the housing needs of Scotland.”

Robison was warned before her Budget by one of Scotland’s biggest estate agencies, DJ Alexander, that she must take immediate action to deal with the country’s ‘housing emergency’,

DJ Alexander said new build construction had stalled, and plans for more rent controls would hit an already overwhelmed PRS.

And as thirteen councils, more than a third of the total, had declared a housing emergency, it was clear that the housing sector needs immediate and substantial support.