The new charge is expected to bring in around £600,000 for the authority in 2026/27, with more than 900 homes believed to be vacant long-term in the region.
Owners of long-term empty homes in Perth and Kinross – including Perth and Kinross Council – will be hit with a 300 per cent charge on their council tax from July 1.
This week councillors voted to allow additional flexibility to help those caught up by the steep surcharge, previously set at 200 per cent.
There are approximately 920 homes lying vacant long-term in Perth and Kinross; the higher surcharge is expected to generate around £600,000 in 2026/27, rising to £800,000 a year thereafter.
No changes were proposed for second homes, of which there is a similar number, which will retain the 200 per cent charge.
A property which is deemed a “long-term empty home” is one which has been unoccupied for over a year. Exemptions include homes which are actively being marketed for sale or let within two years of being occupied and those undergoing repairs/renovation where a new buyer cannot be subject to the increase for up to six months since the date of purchase.
The 300 per cent council tax charge on long-term empty homes was agreed as part of the SNP administration’s budget on March 4, 2026.
The Conservative group opposed the charge.
On Wednesday, June 24 PKC’s Finance and Resources Committee was asked to note the increased surcharge and agree to maintain existing discretionary provisions.
Discretion is applied for situations such as work being done to bring a long-term empty home back into use or exceptional circumstances outwith the direct control of the owner.
It is given for a maximum of 18 months and takes the form of a 10 per cent discount from the date a surcharge would ordinarily be applicable.
Conservative councillor Ian James said: “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: “I know there are a lot of exemptions but we’re putting an admin burden unnecessarily on people who have bought a property. It’s empty for a reason.
“I’m helping a client – and I call them a client because we’re robbing them – but they have a property and it’s going to cost them £1000 a month.”
Independent councillor Grant Laing asked if any council properties would “fall foul” of the scheme.
PKC’s strategic lead for Housing and Communities Elaine Ritchie said: “Yeah, the HRA [Housing Revenue Account] will have to pay this 300 per cent increase and we do have some long-term voids, not empty properties, and that’s where we’re doing capital investment work.
“However, we work really closely with our Council Tax team to look at exemptions and what not but we’re in the same position as private owners.
“It doesn’t come back into the HRA, it goes into a separate pot of funding so there will be a financial impact on the HRA as a result.”
Cllr Laing asked if repairs and work being done to bring a property back into use might count as an exemption.
Ms Ritchie explained the current exemption allowed a maximum discretionary period of 18 months and sometimes the complexities and “extensive works” involved take longer.
Local Taxes team leader Kevin Fraser explained legislation did not allow PKC to treat its own housing stock or housing association stock any differently.
The SNP convener Stewart Donaldson moved the 300 per cent charge for approval with the current discretionary provisions in place.
It was seconded by council leader Eric Drysdale and supported by SNP councillors on the committee.
Conservative group leader John Duff tabled an amendment to increase the discretionary period from 18 months to two years.
This was seconded by Conservative councillor Caroline Shiers. It was supported by Conservative, Independent and Liberal Democrat councillors on the committee.
Independent – former SNP – councillor Grant Laing abstained.
Nine councillors voted to extend the discretionary period to two years and six SNP councillors voted to maintain the 18-month discretionary period.
Following the meeting, Cllr Duff said: “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.”
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