Huge Hike in Empty and Second Home Council Tax In Highland Council Budget Proposals

27th February 2026

In the Highland Council 2026/27 budget proposals, the council plans to significantly increase council tax premiums on second homes and long-term empty properties to address the region's housing crisis.

These "scorching" increases follow the removal of the previous legislative cap under the Housing (Scotland) Act 2025.

Second Home Proposals
The council is proposing a tiered increase for second homes (defined as dwellings that are furnished and occupied for at least 25 days a year but are nobody's sole or main residence):

2026/27: 300% of the standard council tax rate.
2027/28: 350% of the standard rate.
2028/29: 400% of the standard rate.

Long-Term Empty Property Proposals
Long-term empty properties (unoccupied and substantially unfurnished for over 12 months) are subject to a different set of proposed premiums:

2026/27: 250% of the standard council tax rate.
2027/28: 350% of the standard rate (after 24 months of being empty).
2028/29: 400% of the standard rate.

Additional Measures
Carrot and Stick Approach: Alongside these tax hikes, the council has proposed a £1 million fund to support homeowners in getting empty properties back into use as permanent housing.

General Increase: These premiums are applied to the base council tax rate, which itself is proposed to rise by 7% for the 2026/27 financial year.

Housing Challenge: These measures aim to support the Highland Housing Challenge, targeting approximately 3,369 second homes and 2,466 long-term empty properties in the region.

These are part of the proposals being put forward for councillors to agree on 5th March 2026.