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Nwicker60
19-Oct-11, 16:20
Tax could raise millions for new affordable housing
LOCAL authorities are to receive new powers to tax empty homes that could help raise millions to build new affordable housing.
The Council Tax on Empty Homes and Housing Support Grant Bill proposals could apply to the 1345 properties that have currently been empty for more than six months and are liable to pay Council Tax in the Highlands.
If all local authorities in Scotland decide to use the maximum powers, they could raise up to £30million per year to spend on much-needed affordable homes.
The bill will also abolish the Housing Support Grant , which was originally established to subsidise local authorities’ housing budgets by helping pay interest on housing debts.
Launching a consultation on the proposals, Cabinet Secretary for Infrastructure and Capital Investment Alex Neil said: “Although the public purse is under huge financial strain the Scottish Government is doing all it can to increase the supply of affordable housing across the country. One way to do this is to tackle the problem of empty homes, which are a wasted resource and often also a blight on local communities as they attract vandalism."
Mr Neil continued:“We are proposing to bring forward legislation to allow Councils to charge a Council Tax levy on homes which have been empty for more than six months. It will be up to each Council to decide if they want to use the new powers, which could encourage more owners to rent or sell their empty homes.”
Graeme Brown, Director of Shelter Scotland who facilitates the government-funded Scottish Empty Homes Partnership, comments on the Scottish Government’s new scheme to target empty homes.
He said: "We welcome the proposals to give councils powers to tax the owners of empty homes. With 25,000 long-term private empty homes across Scotland, this is a step in the right direction. The ultimate measure of success will be the number of empty homes brought back in to use and the number of new affordable homes built using that income. This is not a quick win. The levy will provide several million in income for councils as part of a long term strategy. With 156,000 households on the waiting list, bringing empty homes back in to use can be part of the solution to addressing Scotland’s housing needs. We urge councils to make the most of these new powers and to do all they can to utilise the houses they already have in their communities.”
Since launching, 22 of Scotland’s 32 local authorities have signed up to the www.reportemptyhomes.com (http://www.reportemptyhomes.com/) website, where members of the public are encouraged to report empty homes in their communities.
More information about the Council Tax on Empty Homes and Housing Support Grant Bill is available at the following link: www.scotland.gov.uk/emptyhomes (http://www.scotland.gov.uk/emptyhomes)