The Scottish Government’s decision to increase the Additional Dwelling Supplement (ADS) from 6% to 8% has left a lot of people frustrated and unconvinced. Framed as a way to raise £34 million for public services and tackle housing market challenges, this abrupt change feels rushed, unfair, and out of touch with the realities of the housing market.
An Overnight Decision: Unfair and Shameful
One of the most troubling aspects of this change is its immediate implementation. Buyers and sellers alike were blindsided, with no opportunity to adjust their plans. If I were in the middle of buying a second property, I’d be left scrambling to find thousands more to cover the additional tax.
This kind of overnight policymaking undermines trust and creates chaos. Changes like this should include notice periods, giving people time to prepare. Instead, this feels punitive and poorly planned, creating unnecessary distress in an already challenging market.
Sellers Pay the Price
While the tax technically falls on buyers, the real cost often shifts to sellers. Buyers facing higher taxes will lower their offers to make deals affordable, leaving sellers to bear the brunt.
This particularly hurts small-scale landlords, retirees, and families selling inherited properties. These aren’t the wealthy investors this policy claims to target; they’re ordinary people now facing reduced offers because buyers are trying to offset the higher tax burden.
Fuelling Existing Housing Problems
Scotland’s housing problems won’t be solved by this measure. The real issues—like a lack of affordable housing and insufficient support for first-time buyers—remain untouched. By discouraging small landlords, this policy could reduce rental stock, pushing rents higher and make life even harder for tenants.
Instead of fixing systemic issues, this hike risks deepening them. It feels less like a strategic solution and more like a desperate cash grab, one that does little to address the broader inequalities in the market.
Professionals Sound the Alarm
What really stands out to me is how industry professionals—people who usually keep their opinions to themselves—have openly criticised this decision. Their concerns highlight how disconnected the government is from the realities of the housing market.
For experts to step forward and publicly oppose the policy underscores how serious the unintended consequences could be. It’s a clear warning sign that this move was rushed and poorly thought through.
Where I Stand with ADS
I believe this decision to raise the ADS to 8% is a mistake. It punishes the wrong people—sellers, small landlords, and families—while doing little to address Scotland’s deeper housing problems. The lack of forewarning was unfair, and the outcry from professionals highlights just how poorly this policy aligns with the market’s needs.
If the government truly wants to create a fairer housing market, it needs to listen to experts, address systemic issues, and implement policies with care and forethought. This move feels reactionary and misguided, leaving me concerned about where housing policy in Scotland is heading.
