Massive council tax hikes for second homes in Scotland

Newsletter issue – May 2026

Midlothian Council has introduced a 500% council tax premium on second homes from 1 April. This means some owners now face annual bills up to about £28,000, especially for Band G properties. A typical Band D second home could now cost £14,811 per year.

The premium increases depending on how long the property has been owned:

Under 2 years: double the standard rate

2–3 years: 300% surcharge

Over 3 years: full 500% premium

Empty homes are treated the same way. There are 35 second homes in Midlothian and only two are in Band G. So, this move is only expected to raise circa £200,000 in the 2026–27 financial year. But the council says the goal is behavioural change, not revenue - specifically to discourage second home ownership and free up housing for locals.

Scottish councils now have unlimited powers to set second home premiums. In England they are capped at 100% (double the standard rate), and in Wales it is up to 300%.

Critics argue they worsen the cost-of-living pressures, noting second homes already face an 8% additional dwelling supplement at purchase. The Adam Smith Institute warns extreme premiums could drive away investment and harm local economies.