Minister reveals plans to target second homes with higher taxes

The Scottish Government is to allow local councils to charge double council tax on second homes to curb number being bought.

second homes

The Scottish Government is ploughing ahead with measures to give local councils the power to double council tax charges on second homes.

Plans laid before the Scottish Parliament could come into force by April 2024, if approved by MSPs.

The proposal would bring Scotland’s 24,000 second homes in line with long-term empty homes in the way council tax can be levied.

Commitment

Public finance minister Tom Arthur (main picture) says the legislation is designed to encourage more housing to be used as homes to live in, as well as being a commitment in new First Minister Humza Yousaf’s programme.

Yousaf said soon after being elected as First Minister: “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.”

Push up prices

Propertymark says whilst there is a balance to be struck with the benefits of tourism to local economies, second homes have an impact on the availability of housing and can push up prices for local people looking to buy or rent.

This is particularly apparent in rural areas such as the Highlands, the trade body says, where last year second homes made up over 3% of the total housing stock.

David Alexander, CEO, DJ Alexander

The plans were previously met with opposition from David Alexander, CEO at estate agency DJ Alexander. He said many property owners would sell up and invest elsewhere in the UK.


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