Greens lodge plans to tackle holiday home growth where housing costs are highest
The Scottish Greens are lodging plans to tackle the housing crisis in the areas where it is worst by cracking down on the spread of holiday homes.
At present, someone buying a second or holiday home anywhere in Scotland must pay a tax known as the Additional Dwelling Supplement.
New proposals, lodged by Ross Greer MSP as an amendment to the upcoming Housing Bill, would create a further charge on top of this in areas where rent control measures are introduced.
In some communities such as Lochranza on the Isles of Arran over a third of houses are holiday homes. This trend pushes up housing costs and often forces young people to move out of their own communities in search of an affordable place to live.
Since the last election the Scottish Greens have doubled the Additional Dwelling Supplement (ADS) from 4% to 8% and given councils the power to double Council Tax on holiday homes.
The reforms have had the desired effect on house purchases, with 2455 fewer second homes bought last year than in 2023, the largest decrease in a decade. ADS will also raise more than a quarter of a billion pounds for public services in the current financial year.
Greer’s amendments would allow for further targeted efforts to reduce holiday home ownership in areas where the housing crisis is particularly acute by increasing the Additional Dwelling Supplement in rent control zones. At present, this tax can only be increased or decreased nationwide, with targeted changes not possible.
Ross Greer 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 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. We badly need to shift the balance and free up more homes for those who really need them.”
Mr 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.”