Council Tax Premium on Second Homes
Local authorities will be able to charge a premium of up to 100% on council tax for second homes under legislation aiming to increase the availability of housing.
If approved by Parliament, the secondary legislation would bring second homes into line with long-term empty homes, which can already be subject to a 100% premium on the full rate of council tax. Latest figures show that as at September 2022 there were 24,287 second homes in Scotland.
Second and long-term empty homes are subject to a default 50% discount on council tax. However, local authorities can vary council tax charges and the majority already charge second home-owners the full rate of council tax, the maximum currently permitted.
If approved, the new measures are expected to come into force by April 2024.
The legislation, which was subject to a public consultation this year, is a Programme for Government 2023 commitment. It also delivers on the Scottish Government’s Housing to 2040 strategy and Bute House Agreement with the Scottish Green Party, which include commitments to give councils power to make the best use of housing stock in their areas, including second homes.
Ensuring the availability of affordable housing is vital, and this Scottish Government is committed to approaching that task from all angles.
GRAEME
This is an extension of efforts to get more of Scotland’s housing stock used as primary residences for people in need of homes.
It is also very much in line with the Verity House Agreement – giving local authorities more power to assess local circumstances and decide how to meet the needs of their communities.
The SNP in government is determined to continue further empowering local councils and local communities.
We want everyone in Scotland to have an affordable home that meets their needs. While second homes can bring benefits to local economies, we know they can also affect local housing stock, pushing up prices for those looking to buy or rent. That’s why we’re bringing in this legislation encouraging more housing to be used as homes to live in, seeking a fair contribution to local services from everyone.
PUBLIC FINANCE MINISTER, TOM ARTHUR
Under the Verity House Agreement between the Scottish Government and COSLA, we have committed to give councils greater flexibility to meet local needs. This legislation shows how we are putting this into action, giving councils more powers over how housing is used so they can meet local needs and support thriving communities.
Background
Consultation on council tax for second and empty homes, and non-domestic rates thresholds
