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Reprieve for Angus on empty homes tax

Reprieve for Angus on empty homes tax

The owners of more than 400 empty Angus homes will escape a massive increase of up to 110% in council tax at least for the time being.

However, the local authority has denied “dragging its heels” over Scottish Government advice on how to force more housing stock back on to the market.

Local councillors were told national advice on the abolition of council tax discounts to be replaced by a levy of up to 200% will not take effect until a study concludes.

This will investigate why 431 homes are on the long-term empty list to begin with, the council states, and will not come to a conclusion for six months.

Resources director Mark Armstrong made recommendations to the corporate services department at its last meeting before proposed council restructuring in the new year.

The new policy and resources committee will see the study findings by the beginning of the financial year 2014/15.

He warned against the council “dragging their heels” over a reduction in the rebate while “the wealthiest in society are able to keep their properties empty.”

Councillors agreed Mr Armstrong’s recommendations that the existing 10% discount for long-term empty properties remain unchanged.

He stated that extra income from the abolition of the discount, and an increase of up to 100% tax on said homes, could pay for more social housing through Registered Social Landlords or even help build council housing.

Mr Armstrong stated: “There are currently 431 properties classified as long term empty which would potentially be affected by any change in policy introduced under the provisions of the new legislation.

“It is unknown how many of these are currently for sale or let or how long for.

“The council also has a number of empty properties which would be affected by any change in policy and give rise to additional costs to the council.

“During 2012/13 the council had 62 properties which fall into the long term empty property category, the majority of which are owned by the housing division of the Communities Directorate.

“In the meantime the committee are being asked to continue with the existing long term empty property discount policy of 10%.”

The income could be used towards innovative schemes involving existing stock, including those which might improve the energy efficiency of homes significantly beyond the Scottish Housing Quality Standard.

Such a scheme would contribute toward climate change targets, reduce tenants’ utility bills and lift some tenants out of fuel poverty.

The additional income may also be used to fund or support discrete projects or top up funding from other sources and will need to ensure the expenditure complies with European Commission State Aid rules.

It can also be used to support prudential borrowing for new council house building.

Local authorities can also use the additional income to fund an empty homes officer who would carry out identification work including monitoring the distinction between long-term empty homes and second homes.

From April 1, 2005 councils were given discretion to vary the level of council tax discount on most second homes and long term empty properties from 50% to between 10% and 50%.

Any additional income collected from reducing the discount had to be retained locally and routed through Registered Social Landlords (including the council) for the provision of new build affordable housing to meet locally determined priorities.

The council reduced the discount on all second homes to 10% but the discount on long term empty properties was retained at 50%.

In response to concerns about vacant properties and the lack of affordable housing, last year the council slashed the discount to 10% for where a property remained empty after one year.

The Council Tax (Variation for Unoccupied Dwellings) (Scotland) Regulations 2013 widen local authorities’ discretionary powers to raise additional council tax revenue and also determine how it is spent.

A Scottish Government spokesperson said last night: “Empty homes are a wasted resource and a blight on local communities. At a time when affordable housing is in high demand bringing empty homes back into use is an innovative and cost-effective way to increase supply of housing to families in need.”