In an effort to increase housing availability, a new consultation will explore plans to enable councils to raise the amount of council tax paid on empty and second homes.
First Minister Humza Yousaf is set to announce proposals at the Scottish Trades Union Congress, which could grant councils the power to charge up to double the full rate of council tax on second homes starting April 2024.
The proposed change aims to align second homes with long-term empty homes in terms of taxation from next year. In collaboration with COSLA, the joint consultation will also seek opinions on providing further powers to charge more than double the rate on both empty and second homes in the coming years.
As of January 2023, Scotland had 42,865 long-term empty homes. The consultation will request views on potential changes to the definition of when a property offering self-catered accommodation becomes liable for non-domestic rates.
The plans are part of the Scottish Government’s Housing to 2040 strategy and the Bute House Agreement with the Scottish Green Party, which aim to enable councils to prioritise homes for living in and manage the impact of second or long-term empty homes.
Ahead of the consultation opening, the First Minister said: “We want everyone in Scotland to have an affordable home that meets their needs and this work to improve the availability of sustainable long-term housing opportunities is a core part of that.
“By recognising the important role councils have in considering local needs, these proposals aim to strike a balance between good housing supply and helping communities to thrive and benefit from tourism.”
COSLA Resources Spokesperson Councillor Katie Hagmaan added: “Local government in Scotland is committed to supporting access for everyone in Scotland to an affordable home.
“That is why we are pleased to be launching this joint consultation, as we work to meet the shared aim of creating the right balance to increase the availability of housing and a taxation system that is fair for the tourism industry.”
The consultation, available on the Scottish Government website, is expected to run for 12 weeks until 11th July 2023.
