Tag: empty homes

Council Tax premium on second homes

Draft legislation aiming to prioritise homes for living in

Draft regulations allowing local authorities to charge up to double the full rate of Council Tax on second homes have been laid before the Scottish Parliament.  

If approved, local authorities would be able to apply the Council Tax premium on homes that are not used as a main residence.

This change, a Programme for Government commitment, attracted majority support in a joint consultation with the Convention of Scottish Local Authorities (COSLA). It will bring second homes into line with long-term empty homes from 1 April 2024.

In the 2024-25 financial year, it will be based on rates from 2023-24.

Public Finance Minister Tom Arthur said: “We want everyone in Scotland to have a home that meets their needs. We know second homes can sometimes benefit local communities, but they can also restrict the availability of housing and increase costs for people who want to rent or buy.

“Subject to approval by Parliament, this legislation aims to prioritise housing for living in by allowing local authorities to charge a Council Tax premium on second homes. Backed by a majority of respondents to our joint consultation with COSLA, it will enable councils to seek a fair contribution towards local services from second-home owners.”

COSLA Resources Spokesperson Councillor Katie Hagmann said: “Subject to Parliamentary approval, COSLA very much welcomes the ability for councils to take the decision to increase the premium on second homes in their areas.

“Allowing the politicians who are closest to their communities to take decisions about what best suits local needs and circumstances is well aligned to the Verity House Agreement.”  

Act now to ensure empty homes are not legacy of Covid crisis, says charity leader

Crumbling bricks, broken windows and overgrown gardens of empty homes across Scotland could be a visual legacy of the economic crisis caused by the Covid pandemic if action is not taken to bring more properties back in to use, says the leader of a project working with local authorities across the country.

Shaheena Din, National Project Manager for the Scottish Empty Homes Partnership, which is funded by the Scottish Government and hosted by Shelter Scotland, will tell the organisations 10th annual conference that local authorities must include working to bring Scotland’s almost 50,000 empty homes back into use as part of Covid-19 recovery plans or risk them becoming the symbol of economic crisis.

According to Scottish Government figures published in December, 47,333 properties in Scotland had been empty for 6 months or more, up 16% (6370) from the previous year. 

More worryingly, the full impact of Covid-19 on the number of long-term empty homes is still emerging, and the figures may continue to rise for some time.

SEHP are also concerned the pandemic has placed Scotland’s ability to deliver 50,000 new affordable homes at risk and believe empty homes can provide a cost-effective way of providing much needed affordable homes after the pandemic.  The average cost of returning an empty home to a habitable state is between £6,000 and £12,000, ten times less than the average cost of building a new home.

Furthermore, bringing empty homes back into use can provide a vital income stream to businesses and the local economy. 

Scottish Government figures show that every £1 spent on renovating property in Scotland generates £1.60 for the economy.  This is because someone repairing or renovating an empty home are likely to be hiring local builders and purchasing materials from local suppliers. This money is then further invested in the local economy.

Shaheena Din, National Project Manager for Scottish Empty Homes Partnership, said: “Images of empty homes came to symbolise economic decline and the loss of vibrant communities across Scotland in the 1980s and recent figures show the Covid crisis is already causing more empty homes in Scotland.

“We must act now to ensure empty homes do not become a legacy of the pandemic.  By investing in dedicated empty home services, councils can help make homes available for those who need them, improve local communities and deliver a much-needed boost to local economies.”

“No area is immune so we need the 11 councils without a dedicated service to create one urgently, and for all local authorities to prioritise support for bringing empty homes back in to use as part of their recovery and rebuilding plans.”