Empty homes tax to land extra housing

City leaders are to be handed new powers to raise millions of pounds in extra revenue by charging double council tax on empty homes.

Housing Minister Alex Neil today unveiled the audacious Scottish Government plans to allow councils to bring in additional revenue from properties which have been empty for more than six months, with the extra cash ring-fenced to pay for more social housing.

The Scottish Government believes the change will increase the supply of much-needed housing, especially in the private rented sector, contribute to area regeneration and help restore confidence in local property markets.

Official figures show Edinburgh has more than 2500 long-term empty properties.

At present, councils can charge between 50 and 90 per cent of the full council tax on long-term empty homes, with any tax ring-fenced for spending on affordable housing.

But under the new proposals unveiled today, councils would be allowed to double the normal council tax on such homes.

Today's announcement was part of a Scottish Government blueprint, Homes Fit For The 21st Century, setting out its vision for housing up to 2020. Mr Neil said: "There are around 25,000 long-term empty homes across Scotland. They represent a wasted housing asset and have a negative impact on Scotland's cities, towns and villages."

The Scottish Government has calculated that if councils double the tax bills for long-term empty properties, the extra revenue could add up to 130 million over four years.

With the additional resources that these funds could lever in, it says around 800 new affordable homes could be built every year, supporting around 1500 jobs in the construction sector and the economy more widely.

Government figures show Edinburgh has 2552 long-term empty homes, West Lothian 384, East Lothian 341 and Midlothian 309.

The government said examples of properties which could be caught by the higher rate of council tax included so-called "investment" properties, where owners simply leave the property empty. All need to have lain empty for more than six months to be classed as long-term empty.

Second homes or holiday houses are not included in the provisions. Some other properties which are already exempt from council tax, for instance where the occupier has moved to receive care, or where properties are empty pending demolition or compulsory purchase, would not be affected either.