Residents still locked out of their properties more than a year and a half after a fire ripped through their block say they should be exempt from a tax intended for people buying second homes.
Anna Malengou and her husband Lawrence Mearns were forced to pay £30,000 in additional dwelling supplement (ADS) when they decided to buy a new house. They incurred this penalty because work is yet to begin on their damaged flat in Breadalbane Street in the Bonnington area of Edinburgh, meaning they legally owned two properties simultaneously.
Since the blaze in March 2024, they’ve only been allowed in briefly to collect some belongings.
Residents had previously told STV News how they had long held concerns about cladding on the building, which they believed could have been a factor in the fire.
After months living in hotels and following their wedding, Anna and Lawrence decided it was time to move on.
STV NewsAnna told STV News: “My husband and I got married in the interim and were looking for a way to build back our lives.
“And when we found out that in addition to the property taxes we had to supplement that with tens of thousands of pounds it was heartbreaking.
“In order to start a new beginning, we had to source £30,000.”
Developers of the block Persimmon homes expect work on 34 properties on Breadalbane street to commence by the end of October, but until that is completed Anna and Lawrence, as well as all of their neighbours, cannot live in, sell or rent out their properties.
ADS is described by Revenue Scotland as a charge which applies when a homeowner buys a property in addition to their first, for example to use as a second residence, a holiday home or to put on the rental market.
Anna has written to the Scottish Government arguing that exemptions should apply for situations like the one she and Lawrence have found themselves in.
In her letter, she said: “Whilst we have sought to describe our situation, we are not alone in facing these exceptional circumstances. There are many others like us, adversely affected by dangerous cladding, who simply wish to move on with their lives but are prevented by the burden of paying the ADS.”
A repayment of ADS can be claimed within 36 months of payment as long as the previous property is sold. Yet despite the prospect of a refund, the couple still had to find the money in the first place.
STV NewsAnna says she and Lawrence were “very thankful” that they could lean on family for the cash, but know not everybody would be able to do so.
They’ve received the support of their local MSP Ben McPherson, who said: “In a number of ways there are lessons to be learned from what happened here on Breadalbane Street.
“There are improvements to be made for people who are in that situation.”
A Scottish Government spokesperson said: “A review of Land and Buildings Transaction Tax is under way, evaluating key aspects of the legislation, including looking into the impact of the ADS where difficult or exceptional circumstances apply. This initial review will conclude in early 2026 and will support decisions in the next Scottish Parliament on whether any legislative changes should be brought forward.
“We are unable to comment on individual taxpayer circumstances.”
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