North Ayrshire Council is to implement a policy to charge a Council Tax premium on second homes.
From 1 April 2025, a 100% premium will be added to the Council Tax bills of properties classed as second homes.
Council Tax legislation states that a property is considered a second home if it no one's sole or main residence, but which is furnished and lived in for 25 days or more during the previous 12 months.
The decision to move ahead with the policy was made at a meeting of North Ayrshire Council today (12 February) and brings North Ayrshire into line with almost all other Scottish local authorities.
Elected members heard that the council undertook extensive engagement with communities late last year.
The feedback received was mixed with 38 per cent of respondents favouring the premium levy being applied and 59 per cent against it. More than 40 per cent of those who took the survey were second homeowners, who were most likely to be impacted by the change.
In the survey, those in favour of the additional levy said that second home owners raised house prices – particularly on the island communities of Arran and Cumbrae – and contributed to a lack of affordable housing, while those against it said that second homeowners made significant contributions to local economies.
Based on the current Council Tax charges across bands, it is estimated that the application of a 100% premium to second homes would result in additional income of approximately £1.2m a year.
Under the new policy, 10 per cent of additional income received from the Council Tax Levy will be ringfenced to support investment in affordable housing. This builds on the existing contribution from the previous policy on second homes council tax, meaning that a quarter of all income generated from second homes will be directed towards investment in affordable housing.
Elected members also approved the extension of the current provision for a 50% Council Tax discount for up to 12 months on recently-purchased properties undergoing repairs or renovations to include second homes.
The results of Budget engagement into the introduction of a Council Tax Levy on Second Homes is available to view on the council website.
At the same meeting, elected members also agreed a revised policy for the provision of Empty Property Relief in relation to Non-Domestic Rates. The revised policy seeks to standardise the levels of Empty Property Relief available to property owners, reducing the levels and timeframes of relief available and encouraging owners to bring empty premises back into use.
