Second home-owners will pay double council tax in Perth and Kinross

Perth and Kinross Council says the tax rise will help it tackle the rural housing crisis

By Kathryn Anderson Local Democracy Reporter

December 20 2023, 4:47pm

Perth and Kinross Council leader Grant Laing has hailed the tax rise.

Second home owners in Perth and Kinross will pay double council tax from next April.

The move is tipped to bring in £2 million for the local authority.

Council bosses say they’ll use the money to provide affordable housing in rural areas.

Perth and Kinross councillors agreed the 100% increase in principle earlier this month.

However, the rise has now been confirmed after the Scottish Parliament gave its backing to new powers for councils.

Kenmore, on shores of Loch Tay in Perthshire — Locations like Loch Tay make Highland Perthshire popular with second home-owners. Image: Rettie.

Perth and Kinross has 1,160 second homes spread across 12 council wards.

Numbers range from 488 in Highland Perthshire to 11 in Perth City North.

The council has charged the full rate to second home owners since 2017.

This will double from April 2024.

However, purpose-built holiday homes and homes occupied for job-related purposes will continue to have a protected 50% discount.

Perth and Kinross Council chambers with design of bank noted behind it — The Perth and Kinross Council tax move has been rubber-stamped by Holyrood.

SNP council leader Grant Laing previously said the additional £2 million raised in 2024/25 will be used to help plug a budget deficit and protect jobs and services.

Half the amount raised from the council tax rise in 2025-2027 will be used to fund affordable and social housing in rural Perth and Kinross.

‘Councillors know best’

A second home is any property that is not used as someone’s primary residence but is occupied for at least 25 days in a year.

Close-up of council tax bill — Perth and Kinross Council is introducing the higher tax rate next year. Image: Joe Giddens/PA Wire

There are an estimated 24,287 second homes in Scotland

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.”

COSLA’s Resources spokesperson Katie Hagmann welcomed parliamentary approval for the legislation.

“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,” she said.