Beware of the Council Tax Premium

Edinburgh update (April 2026)

Since this article was published, the City of Edinburgh Council has confirmed a change in approach. While the Council had agreed a 300% Council Tax premium on second homes from April 2026, it has now paused its introduction to allow for further assessment, engagement and consideration of timing. For the 2026/27 financial year, second homeowners in Edinburgh will instead be charged at the existing 100% premium, with revised bills being issued. The Council has indicated this review process could take up to six months.

Importantly, this pause applies only to Edinburgh, with other Scottish local authorities continuing to apply their existing policies as previously announced.

A long-term empty home is defined as being vacant for 12 months or more, or two years if it is actively marketed for sale or let.

A second home is defined as a furnished property that is lived in for at least 25 days in a 12-month period and is not the owner’s sole/main residence.

Discounts and exemptions may apply in some cases and it is important to contact your local authority or interrogate their website to understand this.

According to Scottish Government data, there are just over 32,000 empty homes in Scotland and just under 21,000 second homes. Combined, they are a small part of the overall Scottish housing market (about 2% of all dwellings) but this percentage does vary across the country. Empty and second homes rates are highest in Argyll & Bute (9% of all dwellings) and the Scottish islands, but are relatively low in most parts of the Central Belt, including Edinburgh (1.5% of total dwellings) and Glasgow (0.8%).

Councils have had the power to double Council Tax on second homes and empty homes since April 2024 (100% premium). From 1 April 2026, this premium can be hiked as the cap has been removed and local authorities can set their own premiums.

The approach varies across council areas, with a number of local authorities announcing their intentions.

· A 300% premium will apply in Edinburgh and Highland

· 200% will apply in Glasgow

· 225% will be the rate in the Scottish Borders

· In Midlothian, the rate will vary from 200-600% (graduated depending on how long a property is left empty).

· In Argyll & Bute, which has the highest rate of empty and second homes in Scotland, the premium will only be 110%.

In some local authorities, like Fife, the 100% premium remains in place for now.

This applies to the standard Council Tax rate. The water and sewerage charge is not affected.

The aim of the policy is to encourage property owners to bring properties into use and help tackle housing shortages.

At Rettie, working across all sectors and areas of the Scottish property market, we're able to advise anyone wishing to consider their property options if they are empty or second homeowners. We're able to offer clear guidance, valuations and strategic advice to help people considering their options.