Number of second homes in Fife falls by 14% after council tax doubles

The number of second homes in Fife has fallen by more than 14% since council tax bills doubled.

Fife Council began charging 200% council tax on second homes in April, a move expected to bring in an extra £3.9 million in the first year.

It has so far raised an additional £1.6m

There were 2,391 second homes, mainly in the east of the region when the policy was announced in January.

However, six months after its introduction officers have confirmed there are now 2,051, a drop of 340.

And a Fife estate agent says many owners are looking to sell specifically because of higher bills.

Jim Parker, of Fife Properties, said: “I just sold a house in Crail because of that.

“They said doubling council tax meant they were paying more than £4,000 extra a year.

“And they’re not the only ones.”

Fewer people now buying second homes in Fife

Mr Parker says the policy also means fewer people are looking to buy a second home in Fife.

And houses are taking longer to sell as a result.

“It’s right across the board,” he said. “In the East Neuk it’s gone from a month to sell a house to four months.

“There are only 20 properties a month selling there just now. It should be sitting at about 80.”

Mr Parker says it is having both positive and negative effects.

“The plus is they are releasing more houses into the supply, which is a good thing to a degree,” he said.

“However, second home owners tend to pay local agencies to clean and turn the properties round for visitors.

“These people are now losing work and, therefore, money.”

More money for council services

A second home is classed as a house that is not the owner’s main residence but is occupied for at least 25 days a year.

Several councils doubled their council tax after the Scottish Government granted new powers this year.

Fife Council‘s head of revenue and commercial services Les Robertson said: “These houses are not available in either the sales or lettings markets in Fife.

“They are thus limiting the supply of houses in Fife, which has a housing crisis.”

Mr Robertson said the aim of the policy is to either bring in more money for local services or to encourage owners to change the use of their second homes to increase the availability of much-needed housing..

In Fife, the first 40% of any income collected on second homes goes to registered social landlords to help fund the Affordable Housing Project.

It is one of the biggest in Scotland, delivering thousands of affordable homes across the region.