Edinburgh's 300% Second-Home Council Tax From 2027

The City of Edinburgh Council decided at its meeting on 27 August 2026 to raise the council tax premium on second homes and long-term empty homes from 100% to 300%, taking effect on 1 January 2027. Affected owners should expect a revised bill in December 2026. The premium has stood at 100% — double the standard charge — since 1 April 2024, so this is a step change rather than an adjustment, and it lands in the middle of the Scottish buying season.

If you own, are buying, or are thinking of selling a second property in Edinburgh, East Lothian or Midlothian, the figures below are the ones that now shape the arithmetic.

What changed, and why it slipped to January

The power behind this sits with the Scottish Government rather than with individual councils. Local government finance circular 6/2026, published on 25 March 2026 and replacing circular 6/2024, confirms that from 1 April 2026 there is a national default premium of 100% for second homes and long-term empty homes, and that councils may set a rate above or below that default, apply no premium at all, or apply a discount. The framework draws on the Local Government in Scotland Act 2003 as amended by the Housing (Scotland) Act 2025, together with the Council Tax (Variation for Unoccupied Dwellings) (Scotland) Regulations 2013 and their later amendments.

Edinburgh used that headroom in its 2026/27 budget, setting a 300% premium where officers had originally proposed 200%. The increase did not survive its first week. As The Edinburgh Reporter set out on 19 August 2026, the council backtracked eight days after the higher rates launched, having sought internal legal advice, in order to carry out further consultation and engagement. Affected owners had argued the decision lacked sufficient consultation or notice. Officers then recommended a January 2027 start instead. The council also adopted the Scottish Government’s discretion guidance from 1 April 2026.

The money involved is not trivial for the council’s budget: the higher rates had been estimated to raise an additional £4 million during the year, and officers estimated roughly £3 million of that would not now materialise because of the delay.

What counts as a second home

The council’s own definition is a property that is furnished, lived in for at least 25 days in a 12-month period, and is not somebody’s sole or main residence. That wording catches more than holiday flats. A furnished property kept for occasional use, a flat retained after a move, or a home used a few weeks a year while the owner lives elsewhere can all fall inside it.

Councils in East Lothian and Midlothian set their own premiums under the same national framework, so owners outside the city boundary should check the position directly with the relevant council rather than assuming Edinburgh’s figure applies.

The purchase taxes that sit alongside it

Buying an additional dwelling in Scotland attracts the Additional Dwelling Supplement on top of ordinary Land and Buildings Transaction Tax. Revenue Scotland confirms ADS at 8% of the purchase price for transactions on or after 5 December 2024, with the earlier 6% rate applying to transactions with an effective date on or before 4 December 2024 or a contract signed before 5 December 2024. ADS can only apply where the consideration is £40,000 or more.

Two timing rules do a lot of work in practice. ADS does not apply where you dispose of your only or main residence within the 36 months before buying the new one. And where it has been paid, it can be reclaimed if you sell the previous property within 36 months of the purchase, provided that property was your only or main residence at some point in the 36 months before the ADS-liable purchase and you occupy the new property as your only or main residence. For joint buyers with an effective date from 1 April 2024, only one buyer needs to meet the sale and previous-residence conditions, but all buyers must meet the occupancy condition.

The underlying residential LBTT bands have been unchanged since 1 April 2021:

First-time buyer relief raises the nil-rate band to £175,000, worth up to £600.

The Scottish Budget delivered at Holyrood on 13 January 2026 left this largely alone. KPMG’s summary of the Budget records no change to residential LBTT rates and bands from 1 April 2026, first-time buyer relief retained, ADS held at 8%, and a comprehensive LBTT review — covering first-time buyer relief and ADS in exceptional circumstances — expected before the end of the current parliamentary term. Separately, new council tax bands I (£1 million to £2 million) and J (above £2 million) start on 1 April 2028, and the legislative cap on council tax premiums was removed so that councils could set their own rates from 1 April 2026.

The market these changes land in

The latest ESPC house price report, covering June to August 2026, puts the average selling price across Edinburgh, the Lothians, Fife and the Borders at £299,586, up 2.1% on £293,394 in the same three months of 2025. East Lothian averaged £319,636, a rise of 3.8% on £307,859. Midlothian averaged £281,013, up 3.4% on £271,794.

So the backdrop is modest, steady growth rather than a market that would absorb a large new holding cost without anyone noticing. For owners weighing whether to keep a second property into 2027, the premium is a recurring annual cost set against that rate of capital growth; for buyers, ADS at 8% is an upfront cost on top of LBTT.

One more change on the horizon for sellers

Scottish sellers are used to the Home Report, which has included an Energy Performance Certificate since 2008. The EPC regime itself is being rebuilt. The Scottish Government’s business and regulatory impact assessment for the Energy Performance of Buildings (Scotland) Regulations 2025, as amended by the 2026 amendment regulations, confirms that reforms originally due in 2026 will now take effect in 2028, with the amended regulations laid in August 2026.

When they arrive, domestic certificates will carry three ratings — a Heat Retention Rating, a Heating System Rating, and the existing SAP-based figure renamed as an Energy Cost Rating — on a redesigned certificate. EPC validity drops from ten years to five. The triggers for needing an EPC, including advertising a property for sale, are not changing, and because a new EPC is produced for a domestic sale anyway, the shorter validity mainly affects lettings. Lodgement fees rise to £6.00 for domestic certificates, which assessors may pass on.

Frequently asked questions

When exactly does the Edinburgh premium rise? 1 January 2027, following the council’s decision on 27 August 2026. Revised bills are expected in December 2026. The rate until then is a 100% premium.

Does the premium apply to a property I am trying to sell? The council’s test is whether the property is furnished, occupied for at least 25 days in a 12-month period, and not somebody’s sole or main residence. Long-term empty homes are covered by the same premium framework, so a vacant property can be caught on a different footing. Check your circumstances with the council’s council tax team, and ask about the discretion guidance it adopted from 1 April 2026.

Can I reclaim the Additional Dwelling Supplement? Potentially. Revenue Scotland allows a repayment claim where you sell the previous property within 36 months of the new purchase, that property was your only or main residence at some point in the 36 months before the ADS-liable purchase, and you live in the new property as your only or main residence.

Did LBTT change in April 2026? No. Residential LBTT rates and bands were unchanged from 1 April 2026 and ADS stayed at 8%, though a wider LBTT review is expected before the end of the current parliamentary term.