Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

Agency Questions Impact of Edinburgh’s 300% Second-Home Council Tax Surcharge

Edinburgh’s proposed 300% council tax surcharge on second homes and long-term empty properties has been criticised by DJ Alexander, who questions its effectiveness in addressing the city’s housing shortage. The agency also doubts the measure will reduce house prices or rents.

Edinburgh City Council is set to vote on the proposal, which would see owners of second homes and long-term empty properties facing significantly higher council tax bills. Under the plans, owners of a Band A property would pay £4,336 per year, while those with a Band H property could face a bill of £15,935.

The city currently has more than 1,400 second homes and around 1,700 long-term empty properties. The council estimates the surcharge could generate approximately £4 million in additional revenue each year. It also hopes the measure will encourage owners to bring empty homes back into use. A report going before councillors argues that higher premiums could increase the supply of affordable housing and ease pressure on house prices and rents.

However, DJ Alexander points to the relatively small number of second homes in Edinburgh, which has a total of 264,990 homes across all tenures. Second homes account for around 0.5% of the city’s housing stock. The agency argues that increasing housing supply remains the more pressing challenge.

In the 2025-26 financial year, developers started work on 1,850 new homes in Edinburgh, with social housing accounting for 539 of those. The city’s social housing waiting list reached 31,589 in July 2026, with around a third of applicants waiting more than five years for a home. At the end of March 2025, Edinburgh had 7,866 homeless households, covering 14,219 people, including 3,980 children and 2,820 young people aged between 16 and 25.

The Scottish Parliament has reportedly suggested that some MSPs could qualify for an exemption from the surcharge, particularly those who require a second home in Edinburgh due to the distance from their constituency to Holyrood.

This development is relevant for UK letting agents and inventory clerks monitoring changes in council tax policy, as it may affect the management and letting of second homes and long-term empty properties in Edinburgh.