Owners of second homes face the threat of unlimited increases in council tax under new legislation passed by MSPs.
The SNP last night backed a Green amendment to the Housing (Scotland) Bill which will allow councils to more than double the amount of tax that second home owners pay.
Currently, local authorities can impose an uplift on council tax charges for second home owners up to a maximum of 100 per cent more than the normal bill.
But the Green amendment, which won the support of SNP Housing Secretary Mairi McAllan, will now lift the cap and allow unlimited increases.
The Bill also introduces permanent rent controls and restricts increases at the beginning of tenancies.
But a separate Green proposal to force the King to start paying land and buildings transaction tax (LBTT) on property purchases in Scotland was voted down.
Introducing his amendment on second homes, Scottish Greens co-convener Ross Greer said: ‘This recognises the particular harm that is caused by the huge growth in holiday homes in rural and island communities.’
He said some places, such as Lamlash on Arran, are now approaching the point where a majority of homes are second homes or short-term lets, and claimed that ‘this is destroying communities’.
Ms McAllan said: ‘We worked closely with [council umbrella group] Cosla to deliver the first council tax premium on second homes from April 2024 and of course in our 2025 Programme for Government we committed to go further by removing the remaining constraints, and this amendment delivers on that so I’m pleased to have worked with Mr Greer on it and to support it.’
The amendment was passed by 75 votes to 31.
Scottish Conservative housing spokesman Meghan Gallacher said: ‘This reckless decision sums up the SNP and Greens’ addiction to saddling Scots with more and more taxes.’
Mr Greer had also proposed removing the exemption for the Crown on paying LBTT, the Scottish equivalent of stamp duty.
He had hoped to win support from a republican coalition of MSPs for the move, which could have landed the King with a large tax bill for buying properties such as Dumfries House, which he helped save for the nation.
But the move won the support of only ten MSPs, and was opposed by 97.
Mr Greer had told MSPs: ‘It is absurd that one particular billionaire gets a personal tax break.’
Ahead of the debate, new figures yesterday showed another slump in housebuilding.
The number of new homes being completed in Scotland fell by six per cent in the year to the end of June.
