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.
Public Finance Minister said:
“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.
“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.”
COSLA Resources Spokesperson Councillor Katie Hagmann said:
“We absolutely welcome the ability for councils to take the
decision to increase the premium on second homes up to 100%. This
means decisions can be made locally by the elected politicians
closest to the people in their communities about what best suits
local needs and circumstances.
“This is the Verity House Agreement in action, rightly giving
councils greater flexibility for local decision-making to meet
local need in their communities.
“We look forward to continuing to work with Scottish Government
on this and other elements which were consulted on, and we see
this as an opportunity to further improve the council tax
system.”
Background
Consultation on council
tax for second and empty homes, and non-domestic rates
thresholds
Housing statistics: Empty
properties and second homes
