Council tax bills double for owners of second homes in Fife

The move is set to bring in just under £4 million a year - although it's expected to reduce over time - and aims to free up more housing for people to live in.

Those who have second properties - usually holiday homes - in the Kingdom currently pay the full rate of council tax but this will now be doubled to 200 per cent.

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Les Robertson, head of revenue and commercial services, told the cabinet committee: "The rationale, firstly, is to increase revenue for the council to pay for and fund services, and secondly to align the treatment of second homes to that of long term empty dwellings, in so far as additional charges are already levied on long term empty dwellings.

Fife Council approved the changes at a cabinet committee meeting on Thursday. (Image: Fife Council)

"This would equalise, for all those properties in Fife that are not available neither for sale or the lettings market, thus limiting the supply of housing in Fife which has a housing crisis."

There are currently 2,391 properties classed as second homes in Fife with the vast majority - 1,942 - in the east with 229 in West Fife.

Mr Robertson explained: "A second home is a property which is no person's sole or main residence - ie they live elsewhere - but the dwelling is occupied for at least 25 days in any rolling year.

"The most typical example is a holiday home."

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Charging a premium on second homes is expected to bring in £3.9m in the first year and is estimated to reduce - "as owners change behaviours and potentially use of the second homes" - to £1.9m a year by 2028.

There will be exemptions in "exceptional circumstances" and the changes will mean a £100,000 increase in the resources needed.

New powers allowing local authorities to double council tax rates on second homes went before the Scottish Parliament last year - the draft legislation has yet to be formally approved.

If given the green light, Fife will implement the changes from April. 

Asked if the move is likely to have the desired effect, Mr Robertson said: "If you look at long term empty dwellings, we started charging for them in 2016 I believe.

"Over the first four years the number of long term empty dwellings in Fife halved."

He added: It's hard to say what owners of second homes may or may not do.

"They may choose to retain their second home and pay the additional charge, sell the property or make it available for let.

"This is the first time this has been done so there's no precedent."

Owners of empty listed buildings and those who are sitting on vacant development sites - who previously enjoyed 'without limit of time' exemptions - will also be hit in the pocket.

Mr Robertson said: "We propose that we now start charging, from July 1, 2024, owners of listed buildings that are empty and owners of empty development land.

"The proposals will mean that owners of 174 listed buildings and the owners of 195 empty land, which has various categories, will now be subject to empty rates charges.

"The report estimates that the net benefit from the charging of empty rates subjects is just under £1m net."