New powers enabling councils to charge up to double the full rate
of council tax on second homes come into force this week.
Councils will be able to increase the tax from Monday (1 April
2024) and 29 of Scotland's 32 local authorities have confirmed
that second homeowners will have to pay the higher charge in
their areas.
The changes aim to help increase housing availability by
encouraging more homes to be used for living in. They have come
into force following joint work with the Convention of Scottish
Local Authorities (COSLA) and a public consultation held in 2023.
Local Government Empowerment Minister said:
“We know there are housing pressures in parts of Scotland because
of the prevalence of second homes. These new powers give
flexibility to local councils, allowing them to charge the higher
council tax rate on second homes if they wish and making sure
they can prioritise homes for living in.
“The majority of people who responded to the public consultation
last year supported these changes, which bring second homes into
line with council tax policy on long-term empty homes.
“The changes demonstrate the value of the Verity House Agreement
between the Scottish Government and COSLA in putting policies in
place that can better meet the needs of local communities across
Scotland. They also deliver important parts of the Scottish
Government's ‘Housing to 2040' strategy and Bute House Agreement
with the Scottish Green Party.”
Councillor Katie Hagmann, COSLA's Resources spokesperson,
said:
“I am pleased that this important legislation is coming into
force this week. COSLA welcomes the ability for councils to take
the decision to increase the premium on second homes in their
areas where appropriate.
“It supports the long-standing COSLA position that councillors
who are closest to their communities should be empowered to take
the decisions about what best works in their local communities,
demonstrating the value of the Verity House Agreement.”
Background
Second Homes and Long Term
Empty Policies and Discounts 2024-25
The three councils which have chosen not to double council tax on
second homes are Falkirk, Glasgow City and North Ayrshire.
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.
Latest figures, published in December 2023, show that there are
over 24,000 second homes in Scotland. Housing statistics: Empty
properties and second homes - gov.scot (www.gov.scot)
Second homes were previously subject to a default 50% discount on
council tax. However, local councils could vary council tax
charges and the majority charged second homeowners the full
council tax, the maximum previously allowed.
Council tax for second and
empty homes, and thresholds for non-domestic rates: Consultation
analysis
