Edinburgh's Labour-run council has abandoned its controversial 300 per cent council tax premium on second homes merely eight days after the policy took effect.
The local authority introduced the quadrupled bills on April 1, following new Scottish legislation permitting town halls to raise such levies without any upper limit.
Council leader Jane Meagher had argued in March that the increased charge would help boost housing availability across the capital.
However, officials announced this week that the premium increase had been put on hold, citing the need for "further assessment" to determine whether the measure achieves its intended objectives.
One affected homeowner received an email on Wednesday notifying them of the reversal, having already been billed £17,240 for their band H property under the new regime.
The monthly payment of just over £1,430 had already been withdrawn from their account via direct debit before the council's change of direction.
Officials stated that additional work was required, including consultation with impacted property owners and consideration of timing issues.
The city's 1,440 second home owners will now continue paying the 100 per cent premium that was first implemented in April 2024.
Council tax will go up across the country | GETTYThe council confirmed that new bills would be issued reflecting the lower rate, with refunds available upon request.
Meghan Gallacher, the Scottish Conservative housing spokesman, welcomed the pause but condemned the administration's handling of the matter.
"Homeowners will be relieved that this eye-watering council tax hike has been paused, but this embarrassing U-turn exposes just how rushed and badly thought out this policy was," she said.
The council confirmed that new bills would be issued reflecting the lower rate
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She attributed the chaos to SNP ministers granting councils authority to impose such punitive charges without adequate planning or protective measures.
"This policy is not a solution to the SNP's housing crisis," Ms Gallacher added, arguing that Scotland's housing emergency could only be addressed through building sufficient new homes, something she claimed the Nationalists had "lamentably failed to do."
Beyond Edinburgh, councils across Britain are reassessing their approach to second home taxation amid concerns the levies are harming local economies and property markets.
Households in Scotland will also see increases, with Council Tax rising between four per cent and 10 per cent depending on location | GETTYRushcliffe borough council in Nottinghamshire has put forward plans to abolish its premium entirely, whilst Pembrokeshire has twice reduced its charge over the past two years.
Nevertheless, some Scottish authorities have embraced the new uncapped powers, with Highland council matching Edinburgh's original 300 per cent rate from 1 April and Midlothian imposing a 500 per cent premium on certain second home owners.
Scotland currently has approximately 20,927 second homes, with English councils limited to a 100 per cent cap and Welsh authorities permitted to charge up to 300 per cent.