Tag: second homes

Council Tax premium on second homes

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 Tom Arthur 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.”  

Scottish Government to consult on second homes council tax hike

Councils empowered to prioritise ‘homes for living in‘

Plans to enable councils to raise the amount of council tax paid on empty and second homes will be included in a new consultation to help increase housing availability.

First Minister Humza Yousaf will announce proposals at the Scottish Trades Union Congress today (Monday 17 April) which could give councils powers to charge up to double the full rate of council tax on second homes from April 2024.

The proposed change would bring second homes into line with long-term empty homes from next year. The joint consultation with COSLA will also seek views on further powers to charge more than double rate on both empty and second homes in future years.

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

The consultation will also 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.

The plans will deliver on commitments in the Scottish Government’s Housing to 2040 strategy and Bute House Agreement with the Scottish Green Party to enable councils to prioritise homes for living in and manage the impact of second or long-term empty homes.

Ahead of the consultation opening, the First Minister said: “We want everyone in Scotland to have an affordable home that meets their needs and this work to improve the availability of sustainable long-term housing opportunities is a core part of that.

“By recognising the important role councils have in considering local needs, these proposals aim to strike a balance between good housing supply and helping communities to thrive and benefit from tourism.

“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.

“All responses will be carefully considered before legislation is introduced to the Scottish Parliament.”

COSLA Resources Spokesperson Councillor Katie Hagmaan said: “Local government in Scotland is committed to supporting access for everyone in Scotland to an affordable home.

“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. Any additional funding created by these changes under consultation will enable councils to invest in local needs and support sustainable communities.

“We are pleased to be jointly working with the Scottish Government on this vital area of work and we look forward to considering the responses.”

The consultation opens today 1- 7 April 2023 – on the Scottish Government’s consultation page and is expected to run for 12 weeks until 11 July 2023.

Housing statistics: Empty properties and second homes