Edinburgh second-home owners face £16,000 council tax bills under 300% surcharge

For properties in the highest Band H, the base charge of £3,983.82 would balloon to £15,935.28 once the premium is added.

City councillors are expected to give the green light to the measure at a full council meeting next Thursday, according to The Scotsman.

The Labour-led administration’s report, authored by finance and procurement service director Richard Lloyd-Bithell, recommends proceeding with the 300 per cent rate.

The surcharge has already had a turbulent history. Edinburgh’s Labour-led council initially imposed the super-tax in April, only to withdraw it after just eight days following legal advice that further work was needed.

The authority cited the need for greater engagement with affected homeowners and unresolved timing issues as reasons for the suspension.

Officials estimate the brief introduction and subsequent reversal cost the council approximately £3million in lost revenue.

A public consultation launched in May initially indicated the premium would take effect in October.

However, a report to councillors recommended pushing the start date back to January, acknowledging complaints from second home owners that insufficient time had been given to prepare.

The delay would also allow the council to explore additional support for those struggling to meet the increased charges.

Council officials argue the premium will boost the availability of affordable housing in Edinburgh and help ease upward pressure on both property prices and rents.

The city declared a housing emergency in November 2023, the first Scottish city to do so, amid a severe shortage of homes.

The council projects the surcharge will generate an additional £2.7million in council tax income during the 2026-27 financial year.

Yet nearly half of those who responded to the public consultation, around 48 per cent, said the super-tax would significantly reduce their disposable income, with some warning they would be forced to cut spending on essentials.

The council’s own report acknowledged that many respondents viewed the charge as punitive and felt they were being treated unjustly.

Morag Campbell, a second home owner whose main residence is in Berkshire, expressed dismay at the policy.

"I was born and brought up in Edinburgh, attended school and university there, and now feel I’m being hounded out," she told The Scotsman.

Another owner, who splits time between Norway and Edinburgh and asked to remain anonymous, challenged the rationale behind the levy.

"I also use local tradespeople for maintenance and improvements and contribute to the local economy. So what exactly is the excessive premium intended to achieve in my case?" they

The consultation also revealed broader anxieties. Respondents warned the increase could cause genuine financial hardship, particularly for pensioners and those with health conditions. Others pointed out that the policy penalises people who maintain second homes for legitimate family or medical reasons.

Craig Hoy, the Scottish Conservatives’ finance spokesman, dismissed the measure. "This decision by a Labour-led council will do nothing to solve the city’s housing crisis," he said.

Some consultation respondents raised concerns about the democratic legitimacy of imposing such charges on owners who have no right to vote in local elections.

Critics also argued that the policy disproportionately affects retirees and grandparents who keep second properties for genuine family or health-related purposes.

The recommended January start date is intended to give affected households time to consider their options and take any necessary steps before the higher premium kicks in.

It would also provide the council with an opportunity to assess what further assistance might be offered to those facing difficulty paying the substantially increased bills.