Landlords and agents have slammed the Scottish government’s decision to increase the Additional Dwelling Supplement (ADS) under Land and Buildings Transaction Tax from 6% to 8%.

This follow her English counterpart Rachel Reeves' recent decision to raise stamp duty for landlords buying rental properties from 3% to 5%.

Scotland's Cabinet Secretary for Finance and Local Government, Shona Robison (main image) announced the move in her Budget which critics believe will discourage new landlords from entering the sector.

Land and Buildings Transaction Tax is the Scottish equivalent to Stamp Duty in England and ADS is an extra charge on additional properties including second homes, rental properties, and holiday homes.

Scottish Association of Landlords chief executive, John Blackwood (pictured), says despite the Scottish government admitting Scotland is in the middle of a housing emergency, it has decided to deal another blow to landlord investors. “Instead of encouraging new investment, they seem to be going out of their way to deter new investors from buying from the many landlords who have had enough and are opting to sell,” adds Blackwood.

In the Autumn Budget, the UK government decided to increase a similar tax when Chancellor Rachel Reeves announced that the higher rate for additional properties would rise to 5%.

Timothy Douglas (pictured), head of policy and campaigns at Propertymark, believes the increase in ADS is “quite simply wrong and out of touch with the housing needs of Scotland”.

“The decision leaves Scotland as the most expensive place in the UK to rent out a property and will further discourage new landlords to take on much needed private rented property to let,” says Douglas.

“Whilst Propertymark has long called for a review of Land and Buildings Transaction Tax, and the Scottish Government has now committed to do this through the Budget, ultimately with between tenancy rent caps planned and impending minimum energy efficiency rules for private rented property, raising yet more taxes on the private rented sector will do nothing to tackle the housing emergency and only raise rents further and put the burden of these costs on tenants.”