Edinburgh City Council is preparing to vote on a proposal that would introduce a 300% council tax surcharge on second homes and long-term empty properties. The council estimates this measure could generate approximately £4m in additional revenue each year.
Under the plans, owners of a Band A property could face an annual bill of £4,336, while those with a Band H property might pay £15,935. The council hopes the surcharge will encourage owners to bring empty homes back into use and increase the supply of affordable housing.
However, property agency DJ Alexander has expressed doubts about the policy's impact on Edinburgh's housing shortage, house prices, or rents. The agency notes that second homes account for around 0.5% of the city's total housing stock of 264,990 homes.
The agency suggests that increasing housing supply remains a more pressing challenge. In the 2025-26 financial year, developers started work on 1,850 new homes in Edinburgh, with social housing accounting for 539 of these. Meanwhile, the city's social housing waiting list reached 31,589 in July 2026.