Labour-run Edinburgh Council has suspended its 300% Council Tax premium on second homes just eight days after its introduction, pending an assessment of its impact.

The policy came into force on 1st April, with second homeowners paying up to four times the standard Council Tax rate. It comes on the back of new powers granted by the Scottish Government, which allow councils to set their own levels with premiums uncapped.

Affected homeowners

Around 1,440 second homeowners in the city have been affected by the rise, which replaced the previous 100% premium introduced in April 2024.

The suspension follows feedback from affected homeowners after bills were issued and payments taken at the higher rate, forcing the council to reverse course.

The Telegraph reports that one homeowner, who was facing an annual bill of £17,240 for a band H property, only received notification that the increase had been withdrawn after they had already been billed for the first monthly payment of just over £1,430, with the money taken by direct debit.

This will allow us to engage on the impact of the rise and consider any amendments or exemptions to the policy.”

Second homeowners’ bills will now revert to last year’s rate while the council carries out a review of the policy.

Councillor Mandy Watt (pictured) said: “We’ve written to all affected homeowners to advise that we’ve suspended the rise in Council Tax for second homes. This will allow us to engage on the impact of the rise and consider any amendments or exemptions to the policy.”

She added: “We’re sorry for any uncertainty this has caused.”