Local authorities will be allowed to double council tax on second homes under plans that have been laid out before the Scottish parliament.
The Scottish government’s draft regulations – which are subject to approval by MSPs – are part of a joint plan with the Convention of Scottish Local Authorities (COSLA) to “prioritise housing for living in”.
The change – a programme for government commitment – will bring the tax rules on second homes into line with long-term empty homes from April 2024.
Public finance minister Tom Arthur said if the changes are approved by Holyrood, councils will be able to receive a “fair contribution towards local services from second home owners”.
He 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.
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“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 homeowners.”
A second home is classed as any home that is not used as someone’s primary residence but is occupied for at least 25 days in a year.
Latest figures show that at the end of September 2022, there were 24,287 second homes in Scotland.
Second homes are currently subject to a default 50% discount on council tax.
However, local authorities have the power to vary the premium and the majority charge second homeowners the full rate of council tax.
A consultation was held earlier this year in which 55% of respondents agreed that local authorities should be able to charge a council tax premium on top of regular rates for second homes.
In the 2024-25 financial year, the premium will be based on rates from 2023-24.
Last month, First Minister Humza Yousaf announced a council tax freeze that would keep rates at current levels when local authorities set their budgets for 2024-25.
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Councillor Katie Hagmann, COSLA resources spokesperson, welcomed the draft regulations.
She added: “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.”
The Verity House Agreement, between COSLA and the Scottish government, sets out their vision for a “more collaborative approach to delivering our shared priorities for the people of Scotland”.
The Scottish Greens are also backing the plans, saying the move will tackle the “inequality of house housing shortages” and will raise “tens of millions of pounds for local services like schools and social care”.
MSP Ross Greer, the party’s finance spokesperson, added: “Housing is a human right. We should all be able to access good quality and affordable homes.
“Yet, all across Scotland there are people being priced out of the areas they grew up in while thousands more are stuck on waiting lists.
“With bold steps like this, we will shift the balance away from second home ownership and free up more homes for those who really need them.”
