AN extra charge for buy-to-let properties and second homes could deter investors, exacerbate property shortages and disadvantage first-time buyers, MSPs have been warned.
Landlord and property organisations told Holyrood’s Finance Committee the supplement of three per cent of the total value of properties over £40,000 could also push up rents in the private sector.
Finance Secretary John Swinney said he wanted to ensure opportunities for first-time buyers “are as strong as they possibly can be” when he announced the move in his December draft budget for 2016/17. It followed a similar decision by Chancellor George Osborne in his Autumn Statement.
The charge will be paid on top of the land and buildings transaction tax, which replaced UK stamp duty last April.
The Scottish Association of Landlords wants the three per cent rate to be lowered and the purchase price threshold raised in order to help attract investment to Scotland.
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