The Scottish Government is proposing to give local councils the discretion to charge Council Tax premiums of up to 100 per cent on second homes.

This would bring them in line with long-term empty properties. 

If approved, the new measures could come into force by April 2024.

Scottish Public Finance Minister Tom Arthur says the law is designed to encourage more housing to be used as homes to live in.

Scotland has an estimated 24,000 second homes defined for Council Tax purposes as being nobody’s main residence but occupied for at least 25 days a year.

Propertymark says that while 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 people looking to buy or rent. 

This is particularly apparent in rural areas such as the Highlands, where in 2022 second homes made up over three per cent of the total housing stock.  

However Propertymark has come down strongly against the council tax premium proposal, and has instead recommended homeowners should be incentivised to bring empty homes back into use.