The City of Edinburgh Council has suspended plans to impose a 300% council tax premium on second home owners, backtracking on the policy just eight days after it was due to take effect.
The increase, which was approved by the Council in February 2026 and scheduled to begin on 1st April, has now been halted. Affected homeowners will instead receive revised bills based on a 100% premium – the rate which applied last year.
The Council originally agreed to raise the premium to address Edinburgh’s housing emergency, declared in November 2023, by encouraging owners to bring second homes back into use as primary residences. Under Scottish Parliament powers introduced in April 2024, local authorities were permitted to increase council tax on second homes by up to 100 per cent, which Edinburgh had already implemented as a double charge.
However, the Council now states that the introduction of the higher premium requires further work, including engagement with affected property owners and consideration of timing. The suspension will allow officials to assess the impact of the change to ensure it meets the Council’s policy objectives.
Second homes are defined as furnished properties occupied for at least 25 days in a 12-month period that are not someone’s sole or main residence.
Council finance convener Mandy Watt 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.’
Residents impacted by the reversal will receive revised bills for the 2026/27 financial year, replacing the annual bills dated 16th March. Payments already made will be credited, and refunds will be considered upon request. The Council expects the review process to take up to six months, with further details to be published online.
Photo: Joss Broward
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