Councils are to be given powers to enact huge tax increases on second homes and empty properties, the Scottish Government proposes.

New First Minister Humza Yousaf made the announcement at the Scottish Trades Union Congress, launching a formal consultation which would give councils powers to charge up to double the full rate of council tax on second homes from April 2024.

The proposed change would bring second homes into line with long-term empty homes from next year. The consultation will also seek views on further powers to charge more than double the rate on both empty and second homes in future years.

The latest figures show that in January 2023 there were 42,865 long-term empty homes in Scotland. The consultation will also ask for views on whether there should be changes to the definition of when a property offering self-catered accommodation becomes liable for non-domestic rates.

Currently, a default 50% council tax discount is applied to second and empty homes with councils then able to reduce the discount available. A 100% premium (double the full rate) can be applied to homes that have been empty for more than 12 months.

At the moment, a property is considered self-catered accommodation and therefore liable for non-domestic rates if it is let for a total of 70 nights and is available to let for 140 nights in a financial year.

The plans are part of a deal between the Scottish National Party and the Scottish Green Party. Yousaf said: “We want everyone in Scotland to have an affordable home that meets their needs and this work to improve the availability of sustainable long-term housing opportunities is a core part of that. By recognising the important role councils have in considering local needs, these proposals aim to strike a balance between good housing supply and helping communities to thrive and benefit from tourism.