Under consideration PE2221: Waive the Additional Dwelling Supplement for people not buying additional homes for commercial gain

Background information

The Additional Dwelling Supplement (ADS) is a tax applied to the purchase of additional residential properties, introduced to discourage speculative buying and reduce pressure on housing supply. Its primary aim is to limit commercial investment that drives up house prices and restricts access for first-time buyers. ADS applies regardless of intent, meaning it also affects individuals purchasing homes for non-commercial reasons.

The impact of ADS has been significant. While it has helped curb some investment activity, it has also created unintended consequences for families buying property to support dependent relatives. These purchases are not for profit but to provide stable, suitable housing for vulnerable relatives. The tax can make this impossible, delaying housing solutions, forcing families into unsuitable housing, making essential purchases unaffordable, and increasing pressure on public services. A targeted waiver supports family care, independent living, and aligns the tax with its original purpose.