Perth and Kinross Council approves 100% tax rise for second homes

Perth and Kinross Council has approved in principle to increase council tax by 100% on second homes.

Scotland's local authorities will have the power to vary the rate for second homes from April 2024 under the terms of draft legislation.

There are 1,160 second homes across Perth and Kinross's 12 council wards.

Many second homes across Scotland are currently subject to a default 50% discount on council tax.

However, local authorities have the power to vary the charge and the majority charge second home-owners the full rate of council tax.

Perth and Kinross Council has charged the full council tax rate to second home owners since 2017.

This will increase by 100% from April 2024.

However, if it is a purpose-built holiday home or occupied for job-related purposes it will continue to have a protected 50% discount.

The Perth and Kinross increase would generate about £2m in 2024/25 which council leader Grant Laing said would be used to "protect jobs and protect services".

He told councillors at a meeting last week half the money generated from 2025/26 would then be allocated towards delivering affordable/social housing in rural areas.

Under the terms of Scottish government draft legislation, councils will be able to double the full rate of council tax on second homes, bringing them in line with long-term empty homes.

Conservative councillor Angus Forbes asked Cllr Laing if the purpose "was to raise money or solve the housing crisis".

Tabling the motion, the SNP council leader said: "The report sets out potential additional income in excess of £2m.

"This year that £2m will be used to help close our strategic budget deficit. It will be able to protect jobs and protect services and that's what we will use it for this year."

He added that he had always argued charging a premium for second homes should be applied to the provision of affordable housing.

But Mr Laing said he would postpone that idea until 2025 given the council's current financial challenges, funding uncertainty, and since the legislation is still pending.

"This time lag will give us time to make evidence-based decisions and see the actual figures we achieve," he said.

"In moving this report today I am also giving an instruction to officers to accelerate the identification of sites for affordable and social housing across the whole of Perth and Kinross."

The largest number of second homes in the council wards are in Highland Perthshire where there are 488 - with 123 in Strathearn ward and 121 in Strathtay ward. The lowest number of second homes is in Perth City North which has 11.

The motion was unanimously agreed.

Opposition Conservative group leader John Duff - who represents Highland Perthshire ward - said the council leader's comments on how the money would be spent were "very welcome".

Labour Perth City North councillor Brian Leishman agreed and said: "This proposal gives us the chance to do something that will benefit many, raise revenue, provide vital council services and - down the line - to use at least some of it for the good of social housing. I'm 100% supportive of the 100% increase."

However, SNP councillor Tom McEwan - who convenes the local authority's housing and social wellbeing committee - urged councillors to seek out land in rural areas.

"The real barrier to building housing in rural locations is actually land and not necessarily the finances to do it with," he said.

"I do advocate that any councillors in rural areas, you really need to start influencing the landowners and owners of vacant properties to see if they'll give those properties or bits of land."

In January 2023, there were 42,865 long-term empty homes across the whole of Scotland.

The plan to double council tax on second homes was laid before the Scottish parliament on 8 November.

Report by Kathryn Anderson at the Local Democracy Reporting Service.