PLANS to tackle “cash cow” holiday homes in areas of Scotland which are worst affected by the housing crisis have been lodged by the Greens.
The Scottish Greens unveiled their plans to crack down on the spread of holiday homes by introducing a further tax on additional properties under the new rent control measures proposed in the Housing Bill.
Currently, someone buying a second or holiday home anywhere in Scotland must pay a tax known as the Additional Dwelling Supplement (ADS).
However, the Greens have revealed their amendment to the upcoming Housing Bill, which would create a further charge on top of this in areas where rent control measures are introduced.
In its current form, the tax can only be increased or decreased nationwide, with targeted changes not possible.
Since the last Holyrood election, the Scottish Government has doubled the ADS from 4% to 8%, which it says has given councils the power to double Council Tax on holiday homes.
Greens MSP Ross Greer (below) said the proposal is aimed at making it easier for Scots to find a home in areas which have been most affected by the housing crisis.
He said: “Many of the areas where rent is highest are the same ones being filled up with far too many holiday homes. This reduces the number of houses available for people to actually live in and pushes up prices for both renters and first-time buyers.
“Everyone should be able to access a good quality, affordable home. Yet, all across Scotland people are being priced out of the communities they grew up in by holiday homes and buy-to-let landlords.
“This simple proposal will help people trying to find a home in areas where the housing crisis is at its worst. The money raised will come from those who are already wealthy enough to buy extra properties, something totally outwith the reach of most people.”
The Greens have said that in some communities such as Lochranza on the Isles of Arran, more than a third of houses are holiday homes.
Adding that holiday homes are pushing up housing costs, which often force young people to move out of their own communities in search of an affordable place to live elsewhere.
Greens have said previous reforms in housing legislation have helped decrease the number of second homes bought, with 2455 fewer purchased in 2023.
“The housing market is broken. Far too many properties are being used as cash cows for short-term lets and holiday homes, and it is renters who are paying the price,” Greer said.
“We badly need to shift the balance and free up more homes for those who really need them.”
The Greens added that ADS would also raise more than a quarter of a billion pounds for public services in the current financial year.
Greer added: “The changes already delivered by Green MSPs have reduced the number of second and holiday homes bought each year, freeing up more properties for people who need a home to live in and raising millions of pounds for vital services like schools and hospitals.
“We need to build on this success and ensure that the communities where rent is highest are the ones where people are supported the most.”
