Date lodged: 17 January 2019
To ask the Scottish Government what assessment it has carried out on the impact of increasing the Additional Dwelling Supplement from 3% to 4% on the (a) property and (b) private rental market.
Answered by: Derek Mackay 29 January 2019
The Scottish Government’s assessment of the effects of increasing the Additional Dwelling Supplement (ADS) from 3 per cent to 4 per cent was informed by independent analysis by the Scottish Fiscal Commission (SFC). The SFC assessed the impact on housing market prices and transactions which, given the nature of ADS, includes a substantial element of private rental market transactions. SFC’s analysis on prices and transactions is set out in their publication Scotland's Economic and Fiscal Forecasts December 2018 ( Annex A: Policy Costings, page 222-227) which is available here: http://www.fiscalcommission.scot/media/1435/scotlands-economic-and-fiscal-forecasts-december-2018-full-report.pdf.