JOHN Swinney has been urged not to increase tax for people buying second homes in Scotland.

Chancellor George Osborne announced that from April, those purchasing a holiday home or entering the buy-to-let market south of the Border will pay an extra three percentage points above current stamp duty rates.

He said the extra revenue would be used to help first time buyers.

But property experts warned the move could push up prices, as buyers rushed to beat the tax hike, and rents, as fewer homes were bought to be let out in future.

Mr Swinney refused to be drawn on whether he planned to follow suit in his budget next month.

But Faisal Choudhry, Scottish research director with estate agent Savills, said: "I don't think John Swinney should have a knee jerk reaction to replicate this in Scotland.

"The buy to let market is not as hot in Scotland as it is in London and parts of England."

Mr Swinney introduced the Land and Building Transaction Tax to replace stamp duty in Scotland earlier this year.

It will raise £397million this year, according to the Office of Budget Responsibility.

The figure was in line with the Scottish Government's own estimate, though £142million lower than the OBR's own previous forecast.

The watchdog concluded that more people than expected brought forward purchases to beat the new LBTT, which is set higher than stamp duty for more expensive property transactions.

A spokeswoman for Mr Swinney said: "The Deputy First Minister will propose devolved tax rates for 2016-17 as part of the Scottish Draft Budget announcement on 16 December."