Council delays 300% tax rate for second home owners

A plan to charge second home owners in Edinburgh four times the normal rate of council has been delayed.

The 300% premium was agreed by City of Edinburgh Council in February in a bid to bring more homes to the market, and was set to be implemented on 1 April.

But now affected residents will receive a revised bill charging them twice the normal council tax rate - the same as last year.

Council finance convener Mandy Watt apologised for any uncertainty caused while they consider any amendments needed.

The council said the introduction of the new premium required further work to engage with those affected and consider timing.

They expect the discussions on any potential changes to the rates increase to take six months.

The council defines a second home as a property which is furnished, lived in for at least 25 days during a 12 month period, and not someone's main residence.

Watt said they have written to all affected homeowners to advise them of the suspension.

She said: "This will allow us to engage on the impact of the rise and consider any amendments or exemptions to the policy.

"The rate will remain at last year's level while we do this. We're sorry for any uncertainty this has caused."

Since a housing emergency was declared in November 2023 measures have been taken to alleviate the situation.

In February city councillors confirmed money raised from Edinburgh's tourist tax will be used to build nearly 500 affordable homes.

The visitor levy of 5% on overnight stays in hotels, bed and breakfasts and self-catering accommodation will take effect from 24 July 2026.

About £50m is expected to be raised annually.

A £5m funding pot to build 472 homes between 2026/27 and 2028/29 was previously approved by councillors on the housing, homelessness and fair work committee.

It was officially rubber-stamped as part of the council's budget earlier this year.