Edinburgh’s New Second Home Council Tax Rise: What Property Owners Need to Know
A significant change to council tax in Edinburgh is about to affect many property owners across the city.
From 1 April 2026, the City of Edinburgh Council will introduce a 300% council tax premium on second homes. In practical terms, that means many owners could face a bill four times higher than the standard rate.
You can read the official details here:
https://www.edinburgh.gov.uk/council-tax/second-home-council-tax
For second-home owners, this change could dramatically alter the cost of holding a property that is not someone’s main residence.
It is worth noting that second homes in Edinburgh are already subject to double council tax under the current rules, with the new rules from 1 April 2026 increasing that charge further.
At Clan Gordon, we have already started seeing the impact. Several property owners contacted us this last week after hearing about the change and trying to understand their options.
So what does this new rule actually mean, and what should property owners consider next?
What Counts As A Second Home?
Under the council’s definition, a second home is a property that:
- Is furnished
- Is occupied for at least 25 days a year
- But is not someone’s main residence
These homes will now attract the increased council tax charge.
The policy is designed to encourage more properties to be used as primary residences or brought back into the long-term housing supply.
Why The Change Is Happening
Edinburgh, like many cities across the UK, continues to face significant pressure on housing supply.
Local authorities believe that some properties are underused while many residents struggle to find suitable housing.
Increasing the council tax premium on second homes is intended to encourage owners to:
- Sell the property
- Move into it
- Or bring it into the long-term rental market
Similar measures have already been introduced by councils across Scotland and the UK.
What This Means For Second Home Owners
For many owners, the financial impact could be significant.
Depending on the council tax band, the increase could amount to several thousand pounds per year in additional tax.
We have already spoken with owners who use their Edinburgh property occasionally during the week, for family visits, or simply as a second base in the city. For some of them, the sudden increase makes continuing to hold the property in the same way difficult to justify.
That does not mean selling is the only option.
But it does mean many owners are now reviewing their strategy.
The Options Second Home Owners Are Considering
When council tax premiums increase like this, property owners typically consider three main routes.
- Continue using the property and absorb the higher tax
Some owners will simply accept the additional cost and keep using the property as they do now. However, for many people the increase is large enough to prompt a rethink.
- Sell the property
For some second-home owners, the additional annual cost may push them toward selling. That decision should be weighed carefully against potential rental income, long-term property value growth and transaction costs.
- Move the property into the long-term rental market
For many owners, long-term letting becomes the most practical option. Renting the property out can:
- Generate income to offset the increased council tax
- Ensure the property is occupied and maintained
- Provide a more sustainable long-term use for the home
This is one reason the council introduced the measure. It is intended to bring more properties back into circulation.
Why Some Owners Are Feeling Pressured
One thing we are hearing consistently from conversations with property owners is that many feel pushed into making a decision quickly.
Some second homes are used for family support, work accommodation, or occasional stays rather than purely as an investment.
But regardless of the reason for ownership, the financial reality of a significantly higher council tax bill means many owners now need to reconsider how the property is used.
Why Long-Term Letting Is Often The Simplest Option
Compared with other routes, long-term rental can often be the most straightforward solution.
Short-term letting has become significantly more complex in Edinburgh due to licensing and planning requirements. In many buildings, particularly traditional tenements, short-term lets are no longer permitted.
By contrast, long-term letting typically requires:
- Safety certification
- Compliance with the Repairing Standard
- A compliant tenancy agreement
With the right support, the process can be relatively straightforward.
Turning A Cost Into An Income
For second-home owners who do not want to sell, renting the property can transform the financial picture.
Instead of absorbing a large council tax bill each year, the property can begin generating income.
Many owners also appreciate that a professionally managed tenancy ensures the property remains maintained, inspected and properly looked after.
For owners who live outside Edinburgh or only use the property occasionally, working with a letting agent can also remove the day-to-day management burden.
How Clan Gordon Letting Agent Can Help
At Clan Gordon, we have been helping Edinburgh property owners navigate regulatory changes for many years.
If you own a second home and are considering your options, our team can help you:
- Understand the rental potential of the property
- Prepare it for the long-term rental market
- Ensure it meets all compliance requirements
- Find and vet good quality tenants
- Manage the letting and ongoing property management
For many second-home owners, long-term letting provides a practical way to offset rising costs while keeping the property as part of their long-term plans.
Considering Your Next Step?
With the new council tax changes coming into force on 1 April 2026, now is the time for second-home owners to review their plans.
If you would like to discuss your situation or explore the possibility of letting your property, our team would be happy to help.
Book a call with Clan Gordon today to explore your options.
FAQs
- How much will council tax increase on second homes in Edinburgh?
From April, Edinburgh will apply a 300% council tax premium, meaning second homes could face a bill roughly four times the standard rate.
- What qualifies as a second home?
A property is considered a second home if it is furnished, occupied occasionally and not used as the owner’s main residence.
- Can renting the property avoid the council tax premium?
Moving a property into the long-term rental market may remove the second-home classification, depending on the circumstances.
- Is long-term letting difficult to set up?
With the right guidance, the process can be straightforward. A letting agent can help ensure compliance, market the property and manage the tenancy.
