Rhoda Grant said any properties that were built with “public money” should only be used as a permanent residence.

The measure should also be extended to include ex-council houses, the Labour MSP for the Highlands and Islands added.

Housing is repeatedly held up as a barrier to population growth throughout the Highlands and Islands.

Ms Grant said: “We need a balance of second homes and holiday homes and full-time lived-in homes.

“We live in a beautiful part of the world and I’m not saying we shouldn’t have any short-term lets – they provide income to people.”

However, she added: “Any property that had any public money involved in its creation should never be a second home or holiday home.

“I’m talking about council houses, housing association houses and croft houses which are owner-occupied but built with government grants.

“They should be kept for the public. I’m not saying that people can’t sell their croft but it was built with public money for the public good.

“All of those should be retained for day-to-day use and that would be quite easy to do.”

The Scottish Government’s move to allow local authorities to double council tax on second homes was “not an inhibitor”, the MSP said.

“If you’ve got a second home you can afford to pay more council tax,” she said. “It’s helpful to councils but that’s not an inhibitor.

“The licensing scheme caught out people who rent out a room in their house for three months of the year as a B&B. If you are running a business you can afford to do those things.

“It could have been good but the folk who drafted it didn’t have a clue about the reality on the ground so they have prevented a lot of people renting out their rooms.

“Scotland-wide legislation doesn’t really work. You have to structure it for the local community.”

Minister for housing Paul Mclennan said: “There are already controls on the use of housing built with public subsidy.

“All homes funded through the Affordable Housing Supply Programme should be used for the purpose intended.

“For social rented and mid-market homes, restrictions regarding the use and occupation of the property will be set out by the landlord as part of the tenancy agreement.

“For shared equity homes, the agreement states the property must be the sole residence of the purchaser and any letting is not permitted.

“With regard to croft houses, the eligibility requirements for the Croft House Grant scheme state the proposed new build or house improvement must be used for domestic purposes only.

“No part of the house can be used for non-residential purposes such as a B&B or holiday home and the house must be the principal residential home of the crofter.”