Plans to double council tax for second home owners

People who own a second home could be charged up to double the full rate of council tax under a new proposal

Councils could charge the owners of second homes double the full rate of council tax under new plans.

The proposal, to be announced on Monday, is part of a new Scottish government and Cosla consultation to help increase available housing.

Latest figures show that in January 2023 there were 42,865 long-term empty homes in Scotland.

First Minister Humza Yousaf said all responses to the consultation would be carefully considered.

He will announce the plans at the Scottish Trades Union Congress.

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The proposed changes would enable councils to charge up to double the full rate of council tax on second homes from April 2024, bringing them in line with long-term empty homes.

The consultation will also contain plans to charge more than double the rate on both empty and second homes in future years.

It will ask for views on whether there should be changes to the definition of when a property offering self-catered accommodation becomes liable for non-domestic rates.

Currently, this happens if it is let for a total of 70 nights and is available to let for 140 nights in a financial year.

Ahead of the consultation opening, the Mr Yousaf said the proposals aimed to strike a balance between good housing supply and helping communities benefit from tourism.

He said: "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 to local economies from self-catering accommodation and second homes."

'Barely scratch the surface'

Cosla resources spokesperson, councillor Katie Hagmann, said Scottish local government was "committed to supporting access for everyone in Scotland to an affordable home".

She said: "That is why we are pleased to be launching this joint consultation, as we work to meet the shared aim of creating the right balance to increase the availability of housing and a taxation system that is fair for the tourism industry.

"We also welcome the greater fiscal empowerment for councils to reflect local circumstances this would introduce."

Critics of the proposal said it would not go far enough to address the housing crisis.

David Alexander, CEO of estate and letting agent DJ Alexander Scotland, said it would make many second homeowners "think twice" about remaining in Scotland.

He said: "There are only 42,865 long term empty homes in Scotland so if this policy is aimed at addressing housing shortages it will barely scratch the surface.

"Also given that the social housing waiting list is in the hundreds of thousands this seems to barely address the issue. But it is a gesture and a lot easier than implementing a serious house building programme for the next decade."

Scottish Labour housing spokesperson Mark Griffin said the proposals were a "pale imitation" of his party's plans.

He said: "Under the SNP, Scotland has developed a housing crisis that has priced thousands out of the market and left many more in precarious residential situations.

"Tinkering around the edges won't do. Humza Yousaf must learn from Labour and implement a proper council tax accelerator on empty homes to fund a £1 home policy."