Second and empty homes in Scotland could face big council tax increases

Second and empty homes in Scotland could face big council tax increases

0:01 AM, 28th July 2023, About 10 months ago

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A leading industry body has urged the Scottish government not to raise council tax premiums for second and empty homes.

Propertymark has responded to the Scottish government’s consultation on raising council tax for second and empty homes by more than 100%.

The industry body recommends homeowners should be incentivised to bring empty homes back into use.

75% of Scottish property agents disagree with the proposal

A survey from Propertymark reveals 75% of Scottish property agents either disagreed or strongly disagreed with this proposal. Only 10% agreed or strongly agreed with the proposal.

In the survey, Propertymark asked members what the maximum amount councils could charge should be.

Half (50%) stated that the tax premium should be 50%, just under half (37.5%) stated the premium should be 100% and 12.5% said the tax premium should be 200%.

Henry Griffith, policy officer, at Propertymark told Property118: Increasing costs for empty homeowners will likely have the opposite desired effect by squeezing available funds even tighter and stopping those homeowners from affording refurbishments to the property to get it back into either the sales or rental markets.”

Alternative ways to incentivise the reduction of second homes

Propertymark also questions the effectiveness of raising council tax premiums on second homes.

Similar legislation has been enacted in Wales where local authorities have had the ability to increase council tax premiums on second homes and long-term empty properties by 300%.

This is despite how 79% of respondents to the Welsh government’s consultation felt that doing so would have little or no effect in tackling housing issues.

Mr Griffith added: “We have campaigned for more proactive measures such as the National Empty Homes Grant Scheme in Wales which acts as an alternative to Council Tax Premiums and will see up to 2,000 long-term empty properties bought back into use by 2025.

“We would encourage the Scottish Government to introduce a similar scheme that incentivises homeowners with empty properties to bring them back into use rather than penalise them.”


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