Owners of second homes in parts of Scotland will see their council tax bills increase sharply from April as local authorities introduce some of the highest charges on second properties anywhere in Britain. Around 5,000 households in Edinburgh and the Scottish Highlands will face a 300 per cent premium on their standard council tax payments. The measure means some second home owners could see their annual bills quadruple under the new charging system. Local authority leaders say the policy is designed to discourage the use of properties as holiday homes and encourage more housing to be made available for permanent residents. TRENDING Stories Videos Your Say The changes follow legislation introduced by the Scottish Government last year which allows councils to set their own council tax premium levels on second homes. For an average Band D property in the Highlands, council tax bills are expected to reach £6,536 per year from April under the new rules. Officials at Highland Council have also confirmed that the premium could increase further in future years. The authority has indicated the premium could rise to 350 per cent in the following year and reach 400 per cent by 2028. If those increases are implemented, the annual council tax bill for the same Band D property could reach £8,170. Highland Council says it has more second homes and long-term empty properties than any other local authority area in Scotland. Councillors approved the new measures following a report which argued that higher premiums could improve fairness within the council tax system and increase housing availability. Ariane Burgess, who represents the Highlands and Islands region in the Scottish Parliament, said she welcomed the council’s decision. LATEST DEVELOPMENTS Labour offer Chinese group multi-million pound compensation deal in British Steel dispute Supermarket vouchers ending soon as families urged to claim £300 before March 31 Britain's markets lose £150bn after worst week for Ftse since Donald Trump's Liberation Day tariffs Ms Burgess 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." The council has said the aim of the policy is to encourage property owners to bring second homes back into use as their primary residence. Local authorities in Scotland now have broader powers to set second home premiums than councils elsewhere in Britain. In England, councils are currently limited to imposing a maximum premium of 100 per cent on second homes. Authorities in Wales can impose higher premiums of up to 300 per cent. Across Scotland there are approximately 21,600 second homes, accounting for around 0.8 per cent of the country’s total housing stock. Areas including Isle of Arran, Isle of Skye and Wester Ross have particularly high concentrations of second and holiday homes. Joanna Marchong, policy analyst at the Adam Smith Institute, said the policy risks placing additional financial pressure on property owners without addressing underlying housing supply issues. Ms Marchong said: "This is a classic example of how absurd these second home premiums have become." She added: "Quadrupling council tax on second homes is less about housing policy and more about town halls hunting for new ways to squeeze taxpayers." Ms Marchong said punitive taxes were unlikely to resolve housing shortages or strengthen local economies and called for either the removal of the premium or the introduction of limits on how high councils can set charges. Jane Meagher, leader of City of Edinburgh Council, said the higher premium was intended to increase the number of homes available for permanent residents. Ms Meagher said: "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." Our Standards: The GB News Editorial Charter