Owners of long-term empty homes in Perth and Kinross, including the council itself, will face a 300% council tax surcharge from July 1, 2026. The measure, part of the SNP administration's budget approved on March 4, 2026, aims to encourage occupancy and generate revenue. Approximately 920 homes in the region have been vacant for over a year, with the surcharge expected to raise £600,000 in 2026/27 and £800,000 annually thereafter.
Council Tax Surcharge Details
The 300% charge applies to properties classified as 'long-term empty homes'—unoccupied for more than 12 months. Exemptions include homes actively marketed for sale or let within two years of occupancy, and those undergoing repairs or renovation, where new buyers are exempt for up to six months post-purchase. Second homes, numbering around 920, retain a 200% surcharge.
On June 24, 2026, the Finance and Resources Committee voted to maintain existing discretionary provisions, allowing a 10% discount for up to 18 months in cases where work is being done to bring a property back into use or under exceptional circumstances beyond the owner's control.
Political Opposition and Concerns
The Conservative group opposed the charge. Conservative councillor Ian James questioned the logic: 'I was always told council tax is raised to provide local services and, if you’ve got an empty property, I’m just wondering what services we’re providing for these empty properties?' He added that the surcharge places an 'admin burden' on owners, citing a client facing £1,000 monthly costs.
Independent councillor Grant Laing asked whether council properties would be affected. Elaine Ritchie, strategic lead for Housing and Communities, confirmed that the Housing Revenue Account (HRA) would pay the 300% increase on long-term voids undergoing capital investment. She noted that the funds go into a separate pot, not back to the HRA, creating a financial impact.
Discretionary Period Debate
Conservative group leader John Duff proposed an amendment to extend the discretionary period from 18 months to two years, supported by Conservative, Independent, and Liberal Democrat councillors. The amendment passed with nine votes in favour, while six SNP councillors voted to maintain the 18-month period. Independent councillor Grant Laing abstained.
Following the meeting, Cllr Duff stated: 'We opposed the introduction of a 300 per cent council tax charge on long-term empty properties at the budget. Despite this, it will come into effect from July 1 this year and will affect over 900 households across Perth and Kinross. There are many legitimate reasons why a property may be uninhabitable or unoccupied. In some cases, owners may already be facing significant financial pressures, and this increase risks compounding those challenges. My amendment provides our local taxes team with the flexibility to offer discretionary relief in appropriate cases, for up to two years. This ensures we can take a balanced and compassionate approach, supporting those in genuine difficulty, while remaining within the council’s agreed policy. I have also asked officers to bring forward a future report so that councillors can fully assess the real-world impact of these changes and respond if necessary.'
Impact and Implementation
The surcharge takes effect from July 1, 2026. The council estimates that over 900 long-term empty homes will be affected, with the policy designed to open up properties and increase housing availability. The SNP convener Stewart Donaldson moved approval with current discretionary provisions, seconded by council leader Eric Drysdale.
