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Dundee City Council set to double council tax on second homes

If the proposals are given the green-light, the rise will come into effect from April 1. 

View of Dundee from Fife
Growing fears Dundee is on the cusp of a housing emergency. Image: Mhairi Edwards/DC Thomson.

Dundee City Council looks set to double the rate of council tax for second home owners.

Councillors on the city governance committee are being asked to approve proposals for a 100% council tax surcharge on second home properties when they meet next week.

If the proposals are given the green-light, the rise will come into effect from April 1.

Council officers say it could raise around £308,000 in additional revenue for 2024/25 financial year.

It’s also hoped the move will motivate second home owners to either sell or rent their properties, in turn increasing the housing supply within the city.

As of November 2023, there were 204 second homes in Dundee.

Some exemptions will apply

A report which will go before the committee on Monday details that a second home is defined as a dwelling which is no one’s sole or main residence, but which is furnished.

Some properties will be exempt from the proposed increase, including those which are deemed to be a purpose-built holiday home, or a job-related dwelling.

An unoccupied property which is undergoing repairs or renovations to improve the dwelling will also be exempt.

Last year the Scottish Government approved legislation which gave local authorities discretion to introduce a 100% increase on council tax rates for second homes.

Councillor Willie Sawers  said the move would give the local authority much needed income. Image: Kim Cessford/DC Thomson.

Fife Council is among the local authorities who have already approved the increase, with councillors unanimously agreeing to the plans earlier in January.

Second home owners in Perth and Kinross will also see a 100% increase in council tax come April.

Speaking on the Dundee rise, depute convener of the city governance committee councillor Willie Sawers said it would be beneficial for the city.

He added: “While this proposal could raise some much-needed income for the council,  it is also designed to increase housing supply in the city by bringing properties into the market either for sale or rent.”

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