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 is 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 this week 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% of respondents favouring the premium levy being applied and 59% against it. More than 40% 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.

Councillor Christina Larsen, cabinet member for finance and procurement, said: “When legislation was approved to apply a Council Tax Levy on Second Homes, it was with the aim of helping to increase the availability of housing by encouraging more homes to be used for living in, rather than lying empty for long periods.

“We will continue to monitor how the scheme develops and consider any adjustments as necessary. Like other councils across Scotland who have already adopted this measure, we hope to see real long-term benefits to the availability of housing for people in communities across North Ayrshire.”

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 £1.2 million a year.

Under the new policy, 10% 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.

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.