Scots back plans to double council tax on second homes

A majority of Scots support proposals to double council tax on second homes, a government consultation has found.

If the plans are approved at Holyrood, councils will be able to charge up to twice the rate of council tax on homes that are not used as a primary residence. The proposals are among a string of measures targeting landlords and higher earners in recent years. The tax paid on purchases jumped from 4pc to 6pc for second homeowners last year and a licensing scheme has been introduced for holiday lets.

Out of 981 responses received to the Scottish government consultation,

55pc were in favour of doubling council tax.

Many said the government should go even further by quadrupling the levy for second homeowners. Members of the public accounted for 908 responses, with the remaining portion from trade groups, unions and others.

When asked what level of taxation would be most appropriate, the most popular choice was for a 300pc council tax premium on second homes.

It was believed that this rate could discourage people from buying properties that would only be used occasionally.

The effect of second homes on local housing supply was the most common reason given for supporting the plans to increase council tax on second homes.

Respondents said second homes were driving up prices in some areas and making it difficult for locals to buy or rent property. Concerns were also raised about the sustainability of local services such as schools, as well as the impact of second homes on local economies.

Some said it was reasonable to expect second homeowners to make an extra financial contribution to help address these problems.

Tom Arthur, the public finance minister, said: “Although second homes can sometimes benefit local communities, they can also restrict the availability of housing and raise costs for people who want to rent or buy.

“We want to prioritise homes for living in, and our proposals will enable councils to seek a fair contribution towards local services from second-home owners.”