Second home owners face a 500 per cent hike in their council tax after local authorities were handed unlimited powers to raise bills.

Householders in Midlothian, Scotland could be hit with fees of up to £27,863 this year following the SNP-run council’s decision to increase premium charges.

The council said those who had owned their property for more than three years faced the highest rise.

Second homes owned for less than two years would be taxed a 100 per cent premium on their existing bill – with this rising to 300 per cent for those owned for between two and three years and to 500 per cent for any owned for more than three years.

Together, the 35 second homes in the county are expected to generate up to £200,000 for Midlothian council this tax year.

The charges, understood to be the largest in Britain, were introduced on April 1 – with the council arguing they would free up properties for local people by deterring second home ownership.

Other Scottish councils have also agreed to increase their premiums after the uncapped powers were introduced, though not at the same scale.

In England, local authorities have powers to impose a maximum 100 per cent rate on top of traditional council tax whereas in Wales a 300 per cent increase can be applied.

Megan Gallacher, the Scottish Conservative housing lead, told the Telegraph: ‘These eye-watering hikes are the inevitable result of SNP and Green politicians giving councils the power to introduce unlimited rises in council tax on second homes.

Householders in Midlothian, Scotland could be hit with fees of up to £27,863 this year following the SNP-run council’s decision to increase premium charges (file image)

‘This reckless proposal will pile costs on to homeowners at a time when many are already struggling with the cost-of-living crisis.’

In February, Kelly Parry, council leader, said she hoped the change would deter people from buying second homes.

She added: ‘Although this will bring in some income, I think the council would much prefer that this brought about behavioural change, particularly given our lack of supply in rented houses, which is not only a challenge for obtaining properties but of course pushes up prices.’

Second homes are defined as properties lived in for over 25 days a year – but not used as a main residence.

There are roughly 20,927 second homes across Scotland – with the highest number in the Outer Hebrides and Argyll and Bute.

Owners of empty homes in Midlothian also face the same increases in council tax premiums – calculated by how long a property has remained unoccupied.

Joanna Marchong, of the Adam Smith institute, said Midlothian was only the latest council ‘taking advantage of new powers to hit second home owners with eye-watering tax hikes’.

She added: ‘This sets a dangerous precedent. Councils should focus on getting their own house in order and boosting supply, not on measures that have moved from targeted policy into outright revenue-grabbing.’



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