Part of the Land and Buildings Transaction Tax (LBTT) system, the ADS is a tax that applies in Scotland when buying an additional residential property. As of June 2024, the ADS rate is 6% of the total purchase price of the property.

Giving evidence to Holyrood’s Social Justice and Social Security Committee last week, SAL chief executive, John Blackwood, called for a moratorium on the charge.

His comments reflect ongoing discussions with ministers in which SAL has outlined that a temporary halt on the ADS for landlords would promote investment and confidence in Scotland’s private rented sector (PRS). 

SAL believes this targeted approach would boost Scotland’s housing supply and help to alleviate homelessness. 

Blackwood’s call is part of a broader appeal by SAL for politicians to create a better environment for investors to provide more homes and bring those that have fallen out of use, back onto the market.

SAL believes that the PRS has a key role to play in resolving Scotland’s housing crisis and is committed to working with ministers and all political stakeholders to do so.

“A moratorium on the Additional Dwelling Supplement for landlords would signal that the Scottish Government is serious about encouraging investment in the private rented sector,” Blackwood said.

“Investor confidence has been undermined and continues to be eroded. This move could encourage landlords to invest further and convince those considering leaving, to remain.

“Pausing the ADS would also be an effective way for our new Housing Minister to show that she values landlords and the role we can play in addressing Scotland’s housing challenges.”