Sandy Murray BBC News Online Scotland

Prices could become more affordable as the tax bites

Many supporters of the move to end the large discount given to people with more than one property hope that it will help release more houses on to thefore local residents, particularly in rural Scotland.

But that would also tend to undermine the value of houses owned by everyone who lives in an area with a concentration of second homes and would reduce the spending power which "weekend residents" bring with them to many areas.

The impact will be felt in more than just the rural areas which are obvious magnets for those seeking a retreat away from the pressures of their working lives.

Edinburgh, for example, has 6,500 properties which currently benefit from the 50% discount.

Ronnie Ludwig, a partner with accountants Saffery Champness, believes people on average incomes have experienced a significant benefit from the discount .

He said: "It's been a very substantial bonus.

"The council tax discount affects some 65,000 second homes in Scotland and people benefit from the discount to the tune of �36m."

It's certainly enough to make people think twice about buying a second home now that this has been withdrawn Ronnie Ludwig Saffery Champness

The first effect of the change on the housing market is likely to be felt in the demand from people buying a holiday property for the first time.

According to Mr Ludwig: "It's certainly enough to make people think twice about buying a second home now that this has been withdrawn."

The housing market throughout the UK has been going through a period of boom, and the apparently insatiable demand for property will help to cushion any blow to house prices in rural areas.

Jeremy Peat, chief economist with the Royal Bank of Scotland, thinks the resilience of the housing market has been demonstrated by recent rises in the cost of borrowing.

He said: "None of that really seems to have engendered a slowdown in housing, so some people are saying there has got to be a bit more of a shock to households.

"But there are straws in the wind indicating that the housing market is now declining and what you don't want to do is clobber the consumer."

Up for sale

The change in the level of council tax levied on second homes is unlikely to provide the sort of shock which would change the nature of the housing market across Scotland, but local areas which have proved particularly attractive to jaded city dwellers may notice a difference.

Supporters of reform on the taxation of second homes hope that it could begin to tip the balance away from part-time residents and towards the permanent dwellers who contribute more to the vitality of rural communities.

In some rural areas, most properties are second homes

And Mr Ludwig believes that some owners of holiday homes may decide to give them up.

"Certainly the quantum of the change would probably be enough to perhaps trigger a number of sales of second homes throughout Scotland," he said.

But Martin Ellis, chief economist at HBoS warns that any radical change is unlikely.

He said: "In some areas it would need quite a lot of homes to come onto the market, especially in areas where there is a huge concentration of second homes.

"That's obviously making it very difficult for local people to come in and to afford property because the prices are being forced up to levels which they simply cannot afford.

"My best guess is that by increasing council tax by around �500 we won't make a considerable difference in most areas."

If that assessment is correct, the impact of this council tax reform will probably not lead to significant economic decline in rural Scotland as second home owners sell up.

But neither will it encourage the major change in the pattern of ownership which some of its supporters hope.