Scotland’s First Minister, Humza Yousaf, has recently announced a new Government proposal that could see Scottish Councils given powers to impose significant tax increases on second homes and empty properties.
The formal consultation for this proposal was launched at the Scottish Trades Union Congress on 17th April 2023 in conjunction with Cosla, the council umbrella body, in a bid to help increase housing availability in the country.
Figures published in January 2023 highlight that there were 42,865 long-term empty homes in Scotland and a further 24,287 second homes.
The proposed changes would enable councils to charge up to double the full rate of council tax on second homes from April 2024, bringing them in line with long-term empty homes.
Currently, a default 50% council tax discount is applied to second and empty homes with councils then able to reduce the discount available. A 100% premium (double the full rate) can be applied to homes that have been empty for more than 12 months.
The consultation will also seek views on further powers for councils that would enable them to charge higher rates of council tax on second homes and long-term empty homes the longer the home is empty.
It will also consult on whether there should be changes to the definition of when a property offering self-catered accommodation becomes liable for non-domestic rates.
Currently, a property is considered self-catered accommodation and therefore liable for non-domestic rates if it is let for a total of 70 nights and is available to let for 140 nights in a financial year.
The consultation is expected to run until 11th July and can be found on the Scottish Government’s consultation page here.
Advice for empty homeowners is available from the Scottish Empty Homes Partnership (SEHP). The Partnership, which is delivered by Shelter Scotland through funding from the Scottish Government, has been operating since 2010 and works with councils to develop empty homes services to help bring private sector empty homes back into use.
Auction House Scotland have worked with the SEHP for more than six years, and in this time, have helped almost 50 homeowners return their long-term empty properties back into use using the unique speed and security of an auction sale.
Empty homes, often in need of repair, are well-suited to an auction sale as the large majority of our buyers are builders, developers and investors in search of their next renovation project.
What’s more, it’s free to sell with us. You can benefit from extensive marketing for your property under the leading, national Auction House brand, property viewings taken care of, and entry into one of our in-room or weekly online auctions – all at no cost to you. Our expert team will be on hand to guide you through the entire auction sales process, too.
If you have an empty property that you are considering selling and would like a free, no obligation auction valuation, please get in touch with our team on 0141 339 4466 or click here to arrange an appointment.
