Second homes: Scottish properties to face more than double council tax

The country’s new first minister is set to announce plans to hike up council tax rates on second homes in a bid to help increase available housing in Scotland.

Forming a partnership with COSLA, the Convention of Scottish Local Authorities, the Scottish government are due to confirm plans to give councils the power to raise the full rate of council tax by up to 100% on empty and second homes.  

The change, which was stated at the Scottish Trades union Congress and is under consultation until July this year, would bring second homes into line with long-term empty homes from next year.

As the cost-of-living continues to climb, the demand for affordable homes has increased. The latest figures show that in January 2023 there were 42,865 long-term empty homes in Scotland, signalling that these could have been put to better use.

Currently, second and empty homes in the country face a 50% tax increase, with local authorities able to double the rate if they’re left unoccupied for more than a year.

Ahead of the consultation opening, First Minister Humza Yousaf, has said: ‘We want everyone in Scotland to have an affordable home that meets their needs and this work to improve the availability of sustainable long-term housing opportunities is a core part of that.

‘By recognising the important role councils have in considering local needs, these proposals aim to strike a balance between good housing supply and helping communities to thrive and benefit from tourism.

‘I encourage anyone who is interested to respond to the consultation as we try to prioritise homes for living in, seeking a fair contribution to local services from everyone and recognising the benefits of local economies from self-catering accommodation and second homes.

‘All responses will be carefully considered before legislation is introduced to the Scottish Parliament.’

However, Scotland are not the only country who are introducing higher tax rates for second and empty homes – Cornwall Council have recently requested that the UK government equip them with the powers to triple to tax rate on second properties within the county. 

Image: Paul Chambers