SFHA submitted a response this week to the Scottish Government and COSLA consultation on council tax for second and empty homes. The consultation sought views on local taxation of second homes and long-term empty properties to support the Scottish Government’s Housing to 2040 strategy and fairer housing agenda.
The consultation asked about proposals to increase council discretionary powers to:
- charge up to 100% premium (double the full rate) on council tax for second homes
- charge more than 100% premium on council tax for second homes and long-term empty homes
SFHA’s response broadly supported the proposals for increased council tax charges for both second homes and long-term empty homes. Our response emphasised how second homes and long-term empty homes reduce available housing supply and can create adverse effects on local economies, sense of community, and affordable housing waitlists. We asked for revenue from increased or additional tax to be earmarked for the provision of affordable homes, to help meet local need and housing targets.
SFHA stressed that the powers included in this consultation will have the greatest impact if included as part of a comprehensive strategy to increase affordable housing options. We also supported the discretionary tax powers in the proposals because we agree that councils must be able to work with their communities and partners to make housing decisions that support local needs and strike the right balance for their context. We suggested that other factors to be taken into account when deciding premiums might include:
- numbers, percentages, and distribution of second homes and long-term empty homes in the area
- housing waiting list and homelessness numbers
- Local Housing Strategy Housing Need and Demand assessments
- other existing measures or policies that are aimed at increasing housing supply and the availability of affordable housing
