Second homeowners face decision tomorrow on 300% council tax premium
"Second homeowners who are facing a steep Council Tax rise may sell up," warns Tom Durbin St George, of Moving Compared.
Owners of second homes in Edinburgh face being hit with a 300% Council Tax surcharge when a decision is taken tomorrow.
The decision will be taken by councillors at a full council meeting, and could see affected owners paying four times the standard council tax charge. The Council Tax bill on a second property with in Band H could reach around £16,000 a year.
Such a steep rise could be enough to make second homeowners sell up, according to Tom Durbin St George, Chief Revenue Officer at Moving Compared.
For owners already facing significant running costs, a steep rise in council tax could be enough to make selling the more attractive option.”
The Council Tax premium for second homes in Edinburgh was scheduled to increase to 300% on 1st April this year.
However, the increase was suspended, with second homeowners sent a revised bill for this tax year, based on a 100% premium.
The council said it wanted to hold off on the increase while it assessed how the increase would affect its “objectives to tackle the city’s housing crisis”.
The pressure to increase taxes on second homes is not confined to Scotland.
Councils in England have been able to charge an additional 1000% premium on second homes since April last year. Meanwhile, Welsh local authorities can impose premiums of up to 300%.
Second homeowners
It comes as industry commentators warned that rising council tax premiums could encourage some second homeowners to reconsider keeping their additional property.
Tom Durbin St George, Chief Revenue Officer at Moving Compared, (main picture), says a widespread sell-off is far from inevitable.
However, he adds: “For owners already facing significant running costs, a steep rise in council tax could be enough to make selling the more attractive option.”
He adds: “If that does encourage more owners to sell, both sides of the transaction will still need to account for the legal work and property checks required before a sale can successfully reach completion.”
