Council tax premiums to go ahead
The Scottish Government confirm they will introduce secondary legislation to enable councils to apply up to a 100% premium on council tax rates for second homes from April 2024.
Propertymark responded to the consultation on this issue in July 2023, expressing our members' view that positive incentives would be more effective in bringing exisitng homes back into use, but more importantly that the main need is for new homes.
Raising council tax premiums for empty homes would be ineffective
Responding to the Scottish Government’s consultation on the increasing council tax premiums for second and empty homes, Propertymark’s members are strongly against this approach, especially for second homes, and it is recommended homeowners should be incentivised to bring empty homes back into use.
Maximising the potential of existing stock
The plan identifies the importance of empowering councils to make the best use of the homes already in place. Particularly in areas popular with tourists, as many rural and island communities are, there has been a growing trend for short term holiday lets and second homes. Whilst tourism is a vital part of local economies, authorities need to have the ability to strike the best balance for their communities – which may mean limiting the number of short-term lets or second homes, acquiring properties for the affordable sector and bringing empty homes back into residential use.
Phase two of empty homes project
Funding will continue for the Scottish Empty Homes Partnership (EHP) which works with local authorities and private owners and has helped to return more than 9,000 homes to active use since 2010.
The EHP has established empty homes services and a network of officers across Scotland, and the next aim is to develop a more strategic approach to bringing empty homes back into use and embed this within the Partnership and its delivery partners.
A unique national picture
A key challenge in remote and rural areas is to provide enough affordable housing to prevent the depopulation of communities, and a relatively small number of new homes is likely to have a significant impact. However, more remote or challenging locations often result in higher upfront costs, and therefore greater risk, to developers in opening up new sites. There is clear agreement that infrastructure, such as roads and utilities, is a key barrier to viable housing development.
The demands placed on housing supply for uses other than as permanent homes are also key. The tourism sector is vital to many parts of rural Scotland, however, the level of demand from tourists and second homeowners, can affect the availability as well as the affordability of housing for local communities, key workers and seasonal workers. There is a need to ensure best use of existing homes, including empty properties, as well as balancing the demand for second homes and short term lets alongside the need for permanent homes.
