Holiday home owners in Scotland face new SNP tax hike under plans from front-runner to be new First Minister

• Humza Yousaf would give local authorities power to raise second home tax
• Scottish second home owners already pay a 6% ‘additional homes supplement’

Holiday home owners face a new SNP tax bombshell under plans unveiled by the frontrunner to be the next First Minister.

Humza Yousaf said yesterday he would give local authorities the power to force owners of second homes to pay higher council tax bills.

The additional charge would be applied to any second homes which are not rented out and are not someone’s main residence.

Mr Yousaf also said he would spend £25million buying or leasing empty homes in rural areas to then be used as housing for key workers in the NHS, police or social care sectors.

David Alexander, chief executive of property firm DJ Alexander, said: ‘For decades there have been too few new houses being built in these areas to meet demand.

Humza Yousaf, pictured, said yesterday he would give local authorities the power to force owners of second homes to pay higher council tax bills

People buying second homes in Scotland already pay a 6 per cent ‘additional homes supplement’. Pictured: Inverness

‘While the Scottish Government is determined to blame second home owners and holiday lets and drive them out of the market, they forget that the hospitality and tourism sectors require these places for people to stay if the local economy is to thrive.’

He added: ‘Mr Yousaf may believe that this is a workable solution but it is clear that what is required is a long-term plan to provide afford-able housing for remote and rural areas which ensures the local workforce have suitable homes whilst also delivering policies which maintain and develop the tourism sector.’

People buying second homes in Scotland already pay a 6 per cent ‘additional homes supplement’ on top of the land and buildings transaction tax charge.

Under Mr Yousaf’s plan, they would also face a council tax supplement if the property is not used as a main residence.

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It would not apply to properties permanently operated as a holiday let, as owners of these normally pay business rates rather than council tax.

Mr Yousaf said he would use £25million from the Scottish Government’s budget for affordable housing to pay for a pilot scheme where empty homes would be purchased or leased to provide accommodation for key workers.

He said: ‘I know how important it is for key workers like our NHS staff, police and care workers to have homes near to where they work, and how hard that can be in rural areas where second homes drive up prices.

‘Those working in hospitality, tourism or rural communities also face problems finding affordable housing in local communities, which can really harm local economies.

‘As your first choice for Scotland’s First Minister, I commit to taking the necessary action to support affordable and key worker housing by allowing councils to increase the council tax on second homes – either ensuring councils have extra resources to invest in housing or encouraging more second homes back into use by local residents.’

Mr Yousaf said that in many cases, ‘it can be quicker and cheaper to buy up or long-lease empty homes and bring them back into use than to build new ones’.

He added: ‘I believe part of this SNP Government’s investment in affordable housing should be used to bring empty properties back to life so we can get more people into good quality affordable housing more quickly.’

Scotland’s councils have already been given the powers necessary to remove any tax discounts on second homes.

At the Scottish Labour conference last month, party leader Anas Sarwar unveiled plans to buy long-term empty homes using compulsory purchase orders, and sell them to low-income buyers for £1.

Scottish Conservative finance spokesman Liz Smith said: ‘Just 24 hours after insisting he had no need to raise taxes, Humza Yousaf has announced plans to do exactly that.

‘Scots will be asking themselves how many more tax rises are in the pipeline if he becomes First Minister. These proposals look to be just the tip of the iceberg.’

Scottish Labour housing spokesman Mark Griffin said it was ‘heartwarming to see Humza Yousaf take on board this important Labour idea – it’s just a shame his track record suggests that he will make a hash of it’.

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