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Draft legislation aiming to prioritise homes for living
in
Draft regulations allowing local authorities to charge up to
double the full rate of Council Tax on second homes have been
laid before the Scottish Parliament.
If approved, local authorities would be able to apply the Council
Tax premium on homes that are not used as a main residence.
This change, a Programme for Government commitment, attracted
majority support in a joint consultation with the Convention of
Scottish Local Authorities (COSLA). It will bring second homes
into line with long-term empty homes from 1 April 2024.
In the 2024-25 financial year, it will be based on rates from
2023-24.
Public Finance Minister said:
“We want everyone in Scotland to have a home that meets their
needs. We know second homes can sometimes benefit local
communities, but they can also restrict the availability of
housing and increase costs for people who want to rent or buy.
“Subject to approval by Parliament, this legislation aims to
prioritise housing for living in by allowing local authorities to
charge a Council Tax premium on second homes. Backed by a
majority of respondents to our joint consultation with COSLA, it
will enable councils to seek a fair contribution towards local
services from second-home owners.”
COSLA Resources Spokesperson Councillor Katie Hagmann said:
“Subject to Parliamentary approval, COSLA very much welcomes the
ability for councils to take the decision to increase the premium
on second homes in their areas. Allowing the politicians who are
closest to their communities to take decisions about what best
suits local needs and circumstances is well aligned to the Verity
House Agreement.”
Background
The Council Tax (Variation
for Unoccupied Dwellings) (Scotland) Amendment Regulations
2023
A second home is classed as any home that is not used as
someone’s primary residence but that is occupied for at least 25
days in a year.
Council Tax for second and
empty homes, and thresholds for non-domestic rates: Consultation
analysis
Of those answering the question, 55% of respondents thought that
councils should be able to charge a Council Tax premium on top of
regular Council Tax rates for these second homes. Support for
this position rose to 89% among organisations answering the
question.
Latest figures show that as at the end of September 2022 there
were 24,287second homes in Scotland.
Second homes are currently 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 allowed.
