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Original poster

If you own a second home in Scotland you may want to read this...

43 replies

Scotsgirl001 · 11/09/2023 14:30

Scotland sets out plans to double council tax for second homes – Mortgage Strategy

“While second homes can bring benefits to local economies, we know they can also affect local housing stock, pushing up prices for those looking to buy or rent.
“That’s why we’re bringing in this legislation encouraging more housing to be used as homes to live in, seeking a fair contribution to local services from everyone.”

I get the idea, however I'd imagine the cost of increased council tax will just be passed onto the airbnb/holiday rental guest, so I cant see anyone rushing to sell their second home anytime soon.

Scotland sets out plans to double council tax for second homes   – Mortgage Strategy

The Scottish government has published proposals to allow local authorities to double the council tax for second homes to “increase the availability of housing”.   The governing Scottish National Party says, if approved by parliament, the secondary legi...

https://www.mortgagestrategy.co.uk/news/scotland-sets-out-plans-to-double-council-tax-for-second-homes/

OP posts:
Tomorrowisanewday · 11/09/2023 14:48

That's already in place where the second home is empty, so I suppose it was only a matter of time before this came in

Thatsmorethanhalf · 11/09/2023 15:02

Good on them

Bumble84 · 11/09/2023 15:40

Can’t really say I disagree with this especially if you are running your second home as a business. I say that as a landlord.

Prancingponytail · 11/09/2023 16:19

Great news! So rare the Scottish government do something sensible, this and the short term letting legislation is brilliant.

NoTouch · 11/09/2023 17:07

A good step in the right direction, although more still needs to be done.

TenOhSeven · 11/09/2023 21:21

Good!

FinnRussell · 11/09/2023 23:39

Very supportive of this.

Fundays12 · 12/09/2023 19:02

Excellent there are 4 Air B&B let's between my street and the next street alone whilst loads of local people can't find houses to live in. They need to also add on a few thousand a year on top in extra charges and this practice of having second money making homes at the expense of people being unable to find homes will soon stop.

OnAFrolicOfMyOwn · 12/09/2023 19:15

I wish they would do the same in England.

OhMrDarcy · 12/09/2023 19:28

But won't holiday lets be paying (or registered for) business rates rather than council tax anyway, so it won't affect them?

I have to say that I think it's a clever way of not affecting the number of houses available for student lets though, as the students won't pay council tax in the first place.

SaffronSpice · 13/09/2023 10:00

There are reasons for doubling council tax for second homes but this isn’t it:

”seeking a fair contribution to local services from everyone”

An empty home uses less local services than an occupied one - no schooling, less refuse collection, no social services etc. To double council tax suggests they use double the amount of local services. Even AirBnBs don’t do that. Doubling is asking an unfair contribution to local services. Doubling council tax is principally a penalty/punishment to discourage second home ownership to try and free up some housing stock, possibly increase life in towns/villages, or because there is an ideological dislike of second home ownership. These may be legitimate reasons, but it is not about a fair contribution to local services.

Prancingponytail · 13/09/2023 11:13

SaffronSpice · 13/09/2023 10:00

There are reasons for doubling council tax for second homes but this isn’t it:

”seeking a fair contribution to local services from everyone”

An empty home uses less local services than an occupied one - no schooling, less refuse collection, no social services etc. To double council tax suggests they use double the amount of local services. Even AirBnBs don’t do that. Doubling is asking an unfair contribution to local services. Doubling council tax is principally a penalty/punishment to discourage second home ownership to try and free up some housing stock, possibly increase life in towns/villages, or because there is an ideological dislike of second home ownership. These may be legitimate reasons, but it is not about a fair contribution to local services.

I think it’s perfectly fair. Council tax doesn’t have to be proportionate to use of council services. Think of the extra cost to the council of finding someone a somewhere to live who has been made homeless by endless b&bs in say Skye. Hammer second homes, absolutely hammer them I say.

AgentProvocateur · 13/09/2023 11:39

I think this is long overdue and the right thing to do.

20cheeseomelette · 13/09/2023 11:45

One can debate whether council tax is the best means to do it, but something has to be done to stop so much housing being taken up as holiday homes. It’s obviously not an ideological dislike, it’s a real, physical problem. There are not enough houses and not enough land to accommodate people. Also in the rest of the UK. It’s arguably not going far enough.

CombatBarbie · 13/09/2023 11:45

For those whose 2nd homes are rented etc, I absolutely agree, however in my case, I bought my parents home as they were in considerable debt etc. It was the only way as they couldn't remortgage due to bad credit etc. I pay the mortgage, they pay the debt element and all other bills.

When I then bought my own home I had to pay £4k I think for the 2nd home tax.

I'm not the only person in this situation either.

fruitbrewhaha · 13/09/2023 11:48

As long as everyone is happy to pay much more to holiday in the uk?

Or perhaps we’ll all just head abroad on holiday

Sturmundcalm · 13/09/2023 17:35

I agree that a fair contribution isn't about the services you use, it's about your ability to contribute! We recently moved to a bigger house and I accept that although we are at a stage in life where we are using fewer services (kids ageing out of school, etc) we will pay more council tax. If you can afford to own two properties or afford to have a property sitting empty then you should be paying more. Most councils have schemes to support people who are trying to dispose of an empty property and provide additional exemptions if you are actively trying to sell/rent/repair it.

Alstroemeria123 · 13/09/2023 17:38

fruitbrewhaha · 13/09/2023 11:48

As long as everyone is happy to pay much more to holiday in the uk?

Or perhaps we’ll all just head abroad on holiday

It’s more important for people to have homes than for people to go on holiday, though.

Lantyslee · 13/09/2023 17:44

Is this just for people that own two homes? We own one house which we holiday let and we rent the house we live in.

We're in England but I know changes in legislation have been discussed here too.

WednesdayIsTheWeekend · 13/09/2023 17:57

I don’t think a council tax bill of a few thousand pounds a year will put many of us off having a second. Small price really.

SudokuMania · 13/09/2023 17:58

"An empty home uses less local services than an occupied one - no schooling, less refuse collection, no social services etc. To double council tax suggests they use double the amount of local services. Even AirBnBs don’t do that. Doubling is asking an unfair contribution to local services."

I don't think it means these houses will attract 200% council tax.
At the moment these second homes get a subsidy and only pay 50% council tax - so the doubling brings them back to 100%.
In effect the subsidy will go.

Stroopwaffels · 13/09/2023 17:59

e cost of increased council tax will just be passed onto the airbnb/holiday rental guest

Who may just choose to go elsewhere for their break.

BigBoysDontCry · 13/09/2023 21:47

Similar to a PP, H and I both approaching retirement but are in the middle of splitting up. No intention to divorce but we don't want to be together. Intention was to buy a 2nd property and put it in joint names same as our current house. Can't downsize at the moment as still need to house adult DC for at least a couple of years.

This would probably scupper that plan, we were hoping to remain flexible with housing but sounds like each property will need to be in a single name. Finances will be tight due to the split anyway and double council tax just wouldn't be manageable.

I don't disagree that something should be done to discourage houses sitting empty but I'm not sure if this proposal is the solution.

IHopeThisFindsYouWell · 13/09/2023 21:53

I don't really have any problem with people having second homes to be honest. Not lying empty for years on end, but as private lets, holiday rentals etc. They're a necessary part of the housing economy.

I feel like Scotland is on a race to the bottom, making it less and less attractive for wealthier people to live here. The higher tax rates are punitive already.

Not a popular opinion on MN but I don't see that reflected in real life.

Goherdy · 13/09/2023 21:58

i Don’t think there’s any council in the country left that doesn’t already charge 100% council tax on second homes. Ten years ago that subsidy was available but I’d be surprised if it was still a thing.

somebody up thread mentioned already that holiday let’s will be paying business rates so…..