Thousands of homeowners to be hit with quadruple council tax under new 300 per cent levy

Around 5,000 property owners are expected to be affected as councils apply a 300 per cent premium on top of standard council tax rates.

The move follows legislation passed by the Scottish Government last year which gave local authorities unlimited powers to set their own council tax premiums for second homes.

Council leaders say the steep increase is designed to discourage people from keeping holiday properties and encourage more homes to return to the market for permanent residents.

Under the new charges, owners of an average band D property in the Highlands could face an annual bill of £6,536 once the changes take effect in April.

Highland Council has signalled this is merely the beginning, with plans to raise the premium to 350 per cent next year before reaching 400 per cent in 2028.

At that level, the same band D property would attract a council tax bill of £8,170 annually.

The authority confirmed it holds more second homes and long-term vacant properties than any other council in Scotland, with councillors approving the budget measures at a meeting on Thursday.

A report presented to councillors stated the primary objective is to "encourage owners to bring their properties back into occupation as principal homes".

Ariane Burgess, the Green MSP for Highlands and Islands, welcomed the move. She said: "I'm glad that councillors are using new powers to take action against the huge numbers of second and holiday homes and to support local people who want an affordable place to live by putting more homes in circulation."

Edinburgh council leader Jane Meagher added: "The higher premium for second homes aims to increase housing availability by encouraging owners to bring properties back into active use as permanent homes and increase Edinburgh's available housing stock."

Scottish authorities now possess far greater powers than their counterparts elsewhere in Britain, where English councils can only apply a maximum 100 per cent premium and Welsh authorities are capped at 300 per cent.

However, critics argue the approach is misguided. Joanna Marchong of the Adam Smith Institute said: "Quadrupling council tax on second homes is less about housing policy and more about town halls hunting for new ways to squeeze taxpayers.

"And the sad reality is that punitive taxes like this won't solve housing shortages or revive local economies."

Scotland currently has 21,600 second homes, representing roughly 0.8 per cent of total housing stock, though areas including Arran, Skye and Wester Ross have significantly higher concentrations.