A CRACKDOWN on property-hoarding tax avoiders must be implemented to tackle housing crisis, the Scottish Greens have said.
Proposals are set to be lodged in Parliament by MSP Ross Greer to end the tax breaks currently enjoyed by open-ended investment companies and residential property holding companies – which are both exempt from Land and Buildings Transaction Tax.
He will also propose an additional charge for overseas buyers to crack down on property speculators based in tax havens buying up homes across Scotland.
It was recently revealed that buy-to-let housing firms have become the biggest type of business in the UK, outnumbering fast food shops by four to one.
A report by the Common Wealth think tank also found that the UK has become the world’s biggest destination for overseas property investors.
The proposals from the Greens will be put forward as amendments to the Housing (Scotland) Bill.
Greer (below) said: “Scotland is in the grip of a housing emergency, yet we still allow homes to be bought and hoarded by overseas speculators without them even paying the same tax that anyone else would.
“Ideally these nonsense companies should be banned from buying homes in Scotland at all, but at the very least they should face a hefty tax bill for the privilege. That should at least put some of them off.
“We can be a society where everyone has somewhere to call home, but that won’t happen for as long as we have a broken market, one tilted in favour of the speculators, the tax avoiders and the super-rich.”
The Housing Bill is currently at Stage 2, with MSPs set to debate amendments in the coming months.
Green MSP Maggie Chapman has also lodged a series of amendments that would prevent landlords from being able to increase rents if the property does not meet a minimum standard.
This standard would be set by ministers and be based on the quality of the property, repairs and energy efficiency.
The Scottish Government has published plans to cap rent rises at a maximum of 6% for tenants living in rent control areas.
The Housing Bill would also give tenants the right to keep pets and decorate their homes if it is given the green light.
