MSPS have voted to allow councils to hike council tax on second and empty homes – without any cap.
The proposals, put forward through an amendment to the Housing (Scotland) Bill by the Scottish Greens, are part of a bid to help first time buyers and tackle homelessness.
Co-leader Ross Greer said the policy will “shift the balance” away from wealthy second home owners and those who leave properties lying empty.
The party had already secured two major tax changes for second homes in recent years, doubling the extra charge paid when buying additional properties and doubling Council Tax on second homes.
This has already resulted in the number of second/holiday homes across Scotland decreasing by 2500 in a single year, the Greens said, freeing up thousands of properties for use by families who need somewhere to live.
Councillors will now be able to increase Council Tax on second and empty homes by whatever amount they see fit, potentially to 300%, as already in place in Wales.
In many communities, such as rural and island areas, second homes are approaching or have surpassed half of all properties.
Allowing Council Tax to be raised on second and empty homes without a cap will free up more properties for young people and families in need of a permanent home in communities such as these, the Greens argued.
After MSPs passed the amendment on Tuesday, Greer said: “This change will help us tackle the housing emergency while raising tens of millions of pounds for local services like schools and social care.
“Raising taxes on second homes is a proven way to free up properties for people who actually need somewhere to live.
“All over Scotland people are being priced out of the communities they’ve grown up in, all while tens of thousands of homes sit empty for most of the year. They are being hoarded by a small number of wealthy people who clearly do not need them.
“Everyone should have a safe, secure and affordable place to call home, but many of the areas where rent is highest are also those with a frankly ridiculous number of second homes and empty properties.
“This change, delivered by the Scottish Greens, will shift the balance away from second home ownership, help first time buyers and protect communities.”
MSPs are currently voting on the final stage of the Housing Bill, after it was postponed from last week.
Holyrood considered amendments until after 8pm on Tuesday, with the final debate beginning shortly after.
