Falkrik council to double second home council tax in bid to buy back houses

Falkirk Council hopes doubling the council tax it is charging owners of second homes will persuade some to sell their houses back to the council.

Members of Falkirk Council’s executive agreed on Thursday to apply the second homes levy, after hearing it is expected to raise around £50,000 a year.

The proposal was made by the SNP administration and passed with the support of the Labour group, while the Conservative members voted against the change.

Falkirk is one of just three councils in Scotland that does not currently apply the second homes levy, but that will change in January 2025

The Scottish Government gave local authorities the power to charge a levy on second homes as a response to the housing crisis across Scotland and as a way to “prioritise homes for living in”.

The expectation is that while the move will generate a small income for the council, it could also lead to people choosing to give up second homes by selling or renting them out.

At the time of writing the report, there were 112 second homes in the district, including 36 former council houses.

The council is hopeful that some of those affected will sell their properties back to the council through its buy-back scheme, to help meet a growing need for social housing.

While Falkirk has a relatively low number of second homes – the seventh lowest in Scotland – officers believe that introducing the tax would be a valuable source of income.

For council tax purposes, a second home must be furnished but not lived in full-time and owners need to prove it is being lived in for at least 25 days in each year.

Moving the motion, the SNP council leader Cecil Meiklejohn said: “This is designed to encourage maximum use of dwellings in the area.

“It’s not anticipated there will be significant income from the implementation of the higher rate but any additional income, particularly when the council’s finances are so pressured, is welcome.”

Commenting after the meeting, the Conservative group leader James Kerr said: “The Falkirk Conservatives do not believe in bullying people into selling their private property.

“Increasing council tax charges to 200% – increasing bills faced by families by over £1,000 a year – is the wrong approach.

“It will raise very little for the council – £50,000 at most – whilst adding significant pressure onto families.”