Propertymark slams proposed council tax hike on second homes in Scotland

Propertymark slams proposed council tax hike on second homes in Scotland

0:01 AM, 23rd November 2023, About 12 months ago

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Increasing council tax premiums on second homes will not solve Scotland’s housing crisis, claims a leading industry body.

Propertymark gave evidence to the Scottish Parliament’s Local Government, Housing and Planning Committee and urged Scottish MPs not to implement the proposals arguing it does not represent an effective policy.

Elsewhere in the Committee debate, Propertymark said grant funding is needed to support getting empty homes back into use.

Not an effective policy

Timothy Douglas, head of policy and campaigns at Propertymark, told Scottish MPs raising council tax premiums does not tackle the “crux of the issue”.

He said “Raising council tax premiums for second homes is not an effective policy intervention because the key to ensuring that there are adequate numbers of homes for people to live in is to build more houses across all tenures.

“It doesn’t tackle the crux of the problem, which is the supply of housing for council housing, affordable housing, homes for people to rent and first-time buyers.”

Mr Douglas added that second homes in Scotland are already being taxed at 6% of the purchase price.

“These second homes have already been taxed, whilst this is discretionary, we would question the use of that 6% additional dwelling scheme money that the Scottish government have gained.

“We want to know how that money is being disseminated to local councils to tackle the housing crisis.”

Action on empty homes

According to Scottish Government figures, the number of second homes across Scotland has reduced from 40,599 to 24,287.

Mr Douglas told MSPs that a grace period was sensible for empty homes but should be accompanied by an empty home grant scheme to further incentivise people and first-time buyers to bring empty homes back into use.

He said: “We have long called for action to be taken against empty homes as they can lower land values, make it harder to sell other properties nearby and reduce available housing to live in or rent.

“Propertymark wants to see action on empty homes to maximise the use of existing housing stock and bolster much-needed supply in the private rented sector and for those looking to move house or get on the housing ladder.”

You can watch part of the debate below:


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