The Scottish Association of Landlords (SAL) is demanding the Government pauses its hike in the country’s Additional Dwelling Supplement (ADS) tax on rental properties to encourage investment in the sector and help address the country’s housing crisis.
In what was described as “an attack on the PRS”, the ADS rate rose from 6% to 8% in December 2024, with the supplement charged on top of Land and Buildings Transaction Tax for buyers purchasing additional residential properties, including second homes, rental properties and holiday homes.
Right signal
SAL wants the Scottish Government to introduce a moratorium on the charge specifically for landlords, with chief executive John Blackwood (pictured) making the appeal while giving evidence to Holyrood’s Social Justice and Social Security Committee.
Blackwood says: “A moratorium on the Additional Dwelling Supplement for landlords would signal that the Scottish Government is serious about encouraging investment in the private rented sector.
“Pausing the ADS would also be an effective way for our new Housing Minister to show that she values landlords and the role we can play in addressing Scotland’s housing challenges.”
“Investor confidence has been undermined and continues to be eroded. This move could encourage landlords to invest further and convince those considering leaving to remain.”
“Pausing the ADS would also be an effective way for our new Housing Minister to show that she values landlords and the role we can play in addressing Scotland’s housing challenges.”
A targeted pause, he concludes, would boost housing supply and help alleviate homelessness. Scotland declared a national housing emergency in May 2024, with over 10,000 children currently living in temporary accommodation.