Second homes tax poses 'serious risk' to Millport's economy, islanders say

A second homes tax could pose a “serious risk” to the Cumbrae island economy, according to the local community.

North Ayrshire Council is reconsidering its plans to bring a double council tax on second homes following backlash from the Cumbrae Community Council.

“Our community is extremely concerned that the impacts of this policy disproportionately impact Cumbrae,” Graham Wallace, advisor to Cumbrae Community Council, said.

“This is a cynical cash grab by North Ayrshire Council that will lead to vacant properties on our island that nobody wants. It will directly reduce vital income into our local economy.”

Back in February, North Ayrshire Council voted to double the council tax for second homes from April 1, 2025, bringing it into line with almost all other Scottish local authorities.

However, those plans are now under review.

The council opened up a consultation to review the double council tax charges on second homes following the Cumbrae Community Council’s challenge at the end of April.

North Ayrshire Council previously argued that the aim was to increase the availability of housing by encouraging more homes to be used for living in, rather than lying empty for long periods.

However, the community of Millport – the town on Cumbrae – has argued that the second home council tax “disproportionately” impacts the island’s “fragile” economy and housing balance.

“The type of properties that will be forced onto the market are not the ones permanent residents want,” Mr Wallace said.

“They are small flats in old buildings which are expensive to heat in the winter. We’re calling for a proper plan, including a detailed study into Cumbrae’s second homes, and a programme to make them fit for permanent occupation —rather than driving people and investment away.”

The local community council has claimed that the new tax could strip £500,000 annually from the island’s economy, which generates approximately £12.9m per year.

“Given the island’s reliance on tourism and part-time residents, this poses a serious risk to local jobs, services, and community stability,” a spokesperson from the Cumbrae Community Council said.

Despite a population of just 1,262, Cumbrae accounts for 30% of all second homes in North Ayrshire, which has a population of 133,413.

According to the Cumbrae Community Council, that means the per capita impact on the island will be “74 times greater than on the mainland”.

The community council is calling for residents, visitors and businesses to contribute to the consultation which closes on Tuesday May 20, 2025.

North Ayrshire Council has been contacted for comment.