Our Executive Committee will consider changes to Council Tax charges on empty homes to encourage owners to bring them into use quicker amid the ongoing housing emergency.
The proposed reduction in Council Tax discount for short term empty homes and removal of any discount for long term empty homes will have a positive impact on local communities and help meet housing needs across the Borders.
Current arrangements
Currently full relief from Council Tax is available to owners of short term unoccupied and unfurnished homes for the first six months. For the following six months a 50 per cent Council Tax reduction is available.
Long term empty homes – those which have been unoccupied for over a year – are normally subject to a 200 per cent Council Tax charge, but owners actively trying to bring a property back into use can ask for the additional charge to be delayed and can get an additional 10 per cent relief in certain circumstances.
Proposed changes
It is proposed to reduce the short term empty homes discount for months six to 12 to 10 per cent and remove the additional discretionary 10 per cent discount on long term empty homes. It is anticipated that together this would generate a small increase in Council Tax income of about £135,000 per year.
In addition, new maximum time limits are proposed for any delay to the 200 per cent Council Tax charge being applied to long term empty homes, again to encourage homes back into use. These limits take into account the time required for renovation works, including where planning permission may be necessary, or where legal issues may impact the sale or occupation of the home.
Other statutory exemptions and discounts remain unaffected.
Subject to the agreement of the Executive Committee the new policy will take effect from 1 April 2025.
Councillor Leagh Douglas, Executive Member for Finance, IT and Corporate Performance
“The housing crisis in the Scottish Borders is a major concern, with too many individuals and families struggling to find suitable accommodation. Meanwhile, over 1,100 homes are sitting empty long-term, and more than 800 short-term properties have received Council Tax relief just in the first seven months of this year.
“We need to act urgently. These proposed changes, alongside the efforts of our Empty Homes Officer, will encourage owners to bring their properties back into use while ensuring support for those making genuine efforts to do so.”
Since the introduction of our Long Term Empty Policy in 2016, which saw the maximum 200 per cent Council Tax charge applied, over 80 per cent of long term empty properties have been brought back into use. However, the overall number of long-term empty homes has increased as new properties have become empty.