Legislation has been passed in Scotland which will allow local authorities to charge up to double council tax rates on second homes.
The new powers were approved by the Scottish parliament on Thursday.
The change – a programme for government commitment – will bring the tax rules on second homes into line with long-term empty homes from April 2024.
The Scottish government hopes the move will increase housing availability by encouraging more homes to be used for living in.
New owners of properties that have previously been empty for more than a year will be given a six-month grace period – with the potential for that to be extended by councils.
This will be subject to evidence that renovations or repairs are being undertaken by the owner with a view to the building being brought back into use.
Public finance minister Tom Arthur said: “A majority of those who responded to our consultation earlier this year supported councils being able to charge a council tax premium on top of regular rates for second homes.
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“By protecting those renovating an empty home from paying the empty home premium, we are incentivising new ownership and giving them time to organise and undertake the work necessary to bring it back into use.”
A second home is classed as any home that is not used as someone’s primary residence but is occupied for at least 25 days in a year.
Latest figures show that at the end of September 2022, there were 24,287 second homes in Scotland.
Second homes are currently subject to a default 50% discount on council tax.
However, local authorities have the power to vary the premium and the majority charge second homeowners the full rate of council tax.
In the 2024-25 financial year, the premium will be based on rates from 2023-24.
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The new regulations are part of a joint plan with the Convention of Scottish Local Authorities (COSLA).
Councillor Katie Hagmann, COSLA’s resources spokesperson, said: “COSLA very much welcomes the ability for councils to take the decision to increase the premium on second homes in their areas.
“This supports our long-standing position that councillors who are closest to their communities should be empowered to take the decisions about what best works in their local communities, demonstrating the value of the Verity House Agreement.”
