Stop Airbnb sucking homes out of use Airbnb sucks homes out of residential use. They often have dedicated empty homes teams who will be able to give you any information on any schemes they are running or advice on how to get funding to bring an empty property back into use. A news article describing 2018 research in the UK undertaken by Bloomberg Economics reported that changes to capital-gains tax breaks may mean it makes more financial sense to some potential landlords to leave properties empty rather than to take in tenants; by removing the home from the rental sector owners avoid capital gains tax but continue to benefit from property speculation (Shah 2018) in an own-to-leave investment approach (Dunning and Moore 2020; Wilson et al 2020). Theres also a range of discounted services for empty home owners. After that, a 10%-50% discount can be applied for another six months. The partnership has been reported to have brought 100 homes back into use as of 2021 (Scottish Housing News 2021). However, several local authorities have advised us that since the pandemic, empty homes work has been deprioritised, or in one council, completely stopped. .nf-form-content .nf-field-container #nf-field-1-wrap .nf-field-element .ninja-forms-field { Discounts, exemptions and reductions - mygov.scot More . Long-term empty properties represent a lost opportunity in areas where demand for housing is high and housing supply is inadequate. Across the literature, various interventions and powers have been used to bring empty properties back into use. Our advisers are here to listen and provide the information you need to navigate the situation. In the context of Scottish Government's holistic Housing to 2040 improvements strategy, projects which base empty homes interventions on approaches which also increase affordable housing; address homelessness; engage communities in planning and regeneration; improve the energy efficiency of housing stock; and offer skills training and routes into work, especially for young people and disadvantaged groups may be particularly appropriate. At a time of a housing emergency we know that every home matters. Rural and Islands Housing Funds - More homes - gov.scot Carnuccio (2014) notes that initiatives are more likely to be successful where housing associations work in partnership with LAs, private owners and community groups. background-color:#d9f1ec; In Scotland, the discretionary power is used to various extents in different ways, with use also varying regionally but only two LAs do not apply the premium at all (SEHP 2022). Home Owners' Support Fund (HOSF) - Mortgage to Shared Equity. Second home . A new scheme is being proposed in the Borders in a bid to bring empty homes in back into use. Although being critiqued as under-used, it is argued that EDMOs were envisaged as a last resort power, with the expectation that their introduction would persuade owners to bring properties back into use and encourage constructive dialogue with EHOs supporting owners to access the range of available options (Wilson 2019). However, there is evidence in England that the use of Council Tax premiums is limited, with only around one in four of long-term empty properties subject to the premium (Davies 2014). Seven million pounds in loans were allocated to the owners of empty homes from the National Empty Homes Fund, leveraging a further 12.5 million in funding which was reported as creating 'conditions of affordability' for 2500 homes to be brought back in to use (Grimshaw 2013). When can the Council Tax levy be applied? Sweat Equity Model - for owners who want to retain ownershipof their property but cant afford repairs and can find a tenant willing to undertake works for low/no rent period, Matchmaker service - Matching those wanting to sell or let empty homes and those wanting to purchase or rent them. As a practical example, the report highlighted the Giroscope project, delivered with grant funding from Hull City Council and generated from Right to Buy Receipts through its 'Right to Buy Replacement Programme Grant Fund', which has a component for refurbishment of empty housing. Every Home Matters | Scottish Empty Homes Partnership For example in Leeds, a social enterprise acquired a contract from the council to administer an Empty Homes Doctor service. Financial measures such as a Council Tax premium, VAT discount, empty home loans and grant funding were also reported as effective interventions to help bring empty homes back into use. Please contact the Empty Homes Officerto find out more. The 25 million Rural Housing Fund and the new 5 million Islands Housing Fund will run from 2016-17 to 2021. This section details the current funding available for bringing empty homes back into use in Scotland, then goes on to present examples of various schemes drawn from across the UK and one example from South Korea, to illustrate the ways that loans, grants and VAT discounts can be employed. Current data from Action on Empty Homes finds that the . Costs are then recouped through a leasing arrangement with the owner (Tanner 2013). Whilst this can support some empty property owners with limited resource to take more affordable action to bring their property back in to use, critics have noted that the two year timeframe before properties become eligible for the discount may be problematic for some (Ceranic et al 2017). By bringing suitable empty homes back into use, housing need will be reduced and will in turn help to address the housing emergency. In order to find out what grant funding is available, please get in touch with your local authority. The COVID-19 pandemic has had an impact on long-term empty properties being brought back into use; many empty homes officers (EHOs) report that owners advise that empty homes work has stalled due to a rise in the cost of materials, shortages in supplies and the lack of availability of local tradespeople. Were experts at providing advice on how to address some of the most common problems faced by the owners of empty homes. A minimum 15% contribution is required from the applicant. A selection of case study examples is presented in this section, before a short summary of the opportunities and challenges of partnership approaches is presented which draws on a longitudinal study of an empty homes project. The flowchart above gives a handy guide to when the Council Tax unoccupied premium or levy can be applied. Image description. The initiative supported basic repairs to ensure properties were structurally sound and mortgage-able before selling them at a 25% discount on the condition that the buyers remained as owner occupiers for a minimum of five years. If the pre-application is approved, you will be asked to complete a formal application and provide supporting documents asrequired. Feantsa (2019) detail a case study of Ireland's Empty Homes Initiative, founded by a non-profit housing association and co-funded by the government under the Rebuilding Ireland strategy. They are the only legislative tool designed specifically for long term empty homes and one of their key characteristics is that the property retains its ownership (Wilson 2019). Stoke City Council previously ran a version of a 'homesteading scheme' whereby empty properties from social housing stock were offered for a very small sum of money in exchange for occupants renovating the property, and there are various LAs who have used this approach (Carnuccio 2014). The National Empty Homes Scheme could see up to 2,000 long-term empty properties brought back into use. This review will explore a number of approaches which touch on all these elements. Self-help housing is a term commonly used to describe the work of community-led groups bringing empty homes back into use and involves local organisations procuring empty housing and organising the repairs to make them habitable (Mullins and Sacranie 2014). SEHP conference In doing so, their adoption of an 'invest to save' approach recognised that supporting local schemes and services could bring wider benefits to local people, such as jobs and improved community safety, improved health and well-being as well as increasing the supply of affordable housing (Action on Empty Homes 2019). Against this backdrop of significant challenges, and with home working, restrictions on visits to properties and varying access to IT equipment still affecting all EHOs, the achievements of empty homes officers are all the more impressive for 2021/22. .nf-form-content .nf-field-container #nf-field-9-wrap { Some councils in the UK offer schemes which incentivise buyers seeking an affordable home to acquire empty properties at a lower cost with a view to subsequently carrying out repairs. We use cookies to collect anonymous data to help us improve your site browsing This scheme will run alongside with other Welsh Government schemes like Leasing Scheme Wales which is designed to improve access to longer term affordable housing in the private rental sector. If so, this effectively means that 200% Council Tax is payable. There are also exemptions and discounts if the homeowner passes away, or if the property needs structural repairs. For properties that have been empty for 10 years or more, you can reclaim VAT from HMRC at the end of the project if you or a close family member plan to live in the property. Under The Council Tax (Variation for Unoccupied Dwellings) (Scotland) Regulations 2013 (SSI 2013/45), with effect from 1 April 2014, properties that have been unoccupied for a period of two years or more will not be entitled to any discount of council tax and instead will be subject to an increase to their council tax charge by 100%. The order allows the property to be sold on, allowing the LA to recover reasonable costs through the sale of the property. The grant is available in instalments as the work is undertaken. Other key features of this project included the locally embedded and community-led nature of Giroscope's organisation, engagement with local residents to develop positive support, and recognition that the process of bringing empty homes back into use can create opportunities for training and work experience. In the context of collaborators holding common goals but differing priorities, evidence on how shared culture develops within a collaboration involving public, private and third sector groups and how long this takes to achieve good performance may provide insights on how this work might be accelerated to tackle empty homes. If initial plans dont work out due to financing, there are other things to consider which may help your budget: Goods and services associated with the renovation of empty residential properties, which have been empty for two years or more, may qualify for a reduced rate VAT of 5%. This represents an example of a LA interpreting rules strictly to address critical housing need as evidence suggested that empty homes in South Korea had become a significant problem in urban centres. empty homes next steps | Scottish Parliament Website You can change your cookie settings at any time. In a Scottish example of a community action partnership approach, YMCA Glenrothes established a multi-agency funded partnership delivering a ten year property refurbishment plan, working with young people to renovate small numbers of empty properties then letting these to people who have experienced homelessness. Empty Homes Grant Scheme | Empty homes | Scottish Borders Council We will be bring these online as soon as we can. To check the Council Tax status of your empty property, get in touch with our team. 50m to bring empty homes back to life | GOV.WALES Please contact our Empty Homes Officer with the details, Kelly FernsEmpty Homes OfficerArgyll and Bute CouncilArgyll HouseAlexandra ParadeDunoonPA23 8AJTel: 01369 708672Email: kelly.ferns@argyll-bute.gov.uk, Alternatively you can report empty homes through theShelter Scotland website, Activate toolbar to translate, simplify, magnify or read out text, matchmaker_seller_registration_form_-_abc_application_as_at_oct_2022.pdf, matchmaker_buyer_registration_form_-_abc_application_as_at_oct_2022.pdf. There are currently (as of April 2023) multiple streams of Scottish Government funding that can be used to contribute to bringing empty homes back in to use: As noted in the introduction, internationally displaced populations arriving to Scotland also have the potential to create additional pressures on housing for LAs. . That includes the cost of council tax, minimal security and lost potential rental. Perth and Kinross Councils empty homes initiative grants are distributed to enable unused properties to be used again. We know that there is only so much that an empty homes service can achieve where owners are unwilling to return their home to use or where owners cannot be traced. Any loan offered will be secured on the property and will take into account the existing mortgage. Whilst many individual LAs provide schemes to address empty homes, the work of organisations including SEHP in Scotland and Self Help Housing in the UK play a central role accessibly collating information on the support options available and engaging with individuals and groups signposting them to make use of what is on offer. After that, a 10%-50% discount can be applied for another six months. There are some suppliers who are able to offer preferential rates to empty home owners undertaking works to bringthem back into use. Scotland's second home owners may be stripped of 400 energy grant Town Centre Empty Homes Fund Open - Scotland's Towns Partnership Email us Call us Council Tax on empty properties Homes that are left empty and unfurnished may be entitled to a six-month Council Tax exemption, applied from the date the property was last occupied. Interventions must be designed with sensitivity to the complexity of different reasons for homes being empty in different contexts. The properties were then rented at affordable rates to the displaced people and new immigrants involved in the work (Barth 2017). We now have 24 councils that report having an empty homes service. In the National Assembly for Wales report, a SEHP submission to their research highlighted the issue of legal resources as a particular barrier. On the other hand the evidence suggests that Council Tax levies can be unevenly applied across different LAs depending on outlook and resource. There are significant benefits to owners and local communities by bringing empty homes back into use: If you require any further information on bringing an empty property back into use please contact our Empty Homes Officer. Bringing empty homes back in to use: approaches and interventions, In Wales, the Council Tax premium for empty homes will be raised, England the premium is based on the length of time the home has been empty, Scottish Government's Housing to 2040 strategy, Councils and Registered Social Landlords in 2022/23 have been able to apply for, Argyll and Bute Council offer 40% of the cost of the works, Ipswich Council currently offers a First Time Buyers Empty Homes Grant, Liverpool City Council also ran a homes for 1 scheme, Riverside Housing Association's Own Place, Councils in Kent rolled out the No Use Empty initiative, Perth and Kinross council's Empty Homes Initiative, Perth and Kinross Council's Rent Bond Guarantee Scheme, Dumfries and Galloway's Town Centre Living Fund, approved list of construction merchants maintained by, six months is also the timeframe the Scottish Government currently uses, fifty two CPOs were applied for and thirty seven of these were progressed, SEHP worked in partnership with social enterprise letting agency Homes for Good, Aberdeenshire Council provide information and support for a Sweat Equity initiative, dedicated empty homes roles (Empty Homes Officers (, community action and partnership approaches, providing information on options for renting, selling and refurbishment for owners, such as information on financial support and tax rules, making the process to report empty homes as simple and easy as possible through information and streamlining of reporting processes, referring owners to local organisations who are able to provide professional advice. Empty Homes | Argyll and Bute Council The Local Housing Strategyidentifies a key action to bring empty properties in Argyll and Bute back into use. Employing citizen reporting was found to be potentially useful and contributes to changing attitudes about whose role it is to participate in addressing empty homes through the notion of citizen duty. We remain committed to realising our ambition to see empty homes services in every local authority in Scotland and will continue to work with and support all Local Authorities to ensure that, despite the challenges posed by the pandemic, each Local Authority prioritises bringing suitable empty homes back into use. one-half first } The Empty Homes Grant Fund will help owners of empty homes to bring long-term unoccupied properties back into residential use. Anyone can apply. Some features will not be available immediately including Council Tax billing, Myaccount login, and some application forms. Of these 15,912 have been empty for anywhere between 6 and 12 months, and 27,584 have been empty for over 12 months. It's driven a 1000% increase in homes lost to short-letting in just 5 years. Owners are able to retain ownership of their property by benefitting from the labour of tenants, whilst tenants benefit from low cost, secure long term housing. In 2016, just over half of Scottish LAs had an EHO (Hubert 2016), whereas internal Scottish Government figures show this had increased to 27 out of the 32 LAs by 2021. Action on Empty Homes Empty Homes Grant and Loan Funding. Difficulty with communal repairs Before: Owners who can't be contacted can make it difficult to carry out communal repairs. Please contact Empty Homes Officerwho can provide more details and make a referral for you. One study focusing on England highlighted that providing information and effective signposting may in some cases be sufficient to encourage some owners to bring properties back into use on its own (Tanner 2013). In England and Wales, EDMOs allow LAs to take over management of empty properties for a period of time of up to seven years. By taking a targeted approach to accessing funding pots, Salford Council created a diversity of options from 10,000 grant funding to owners on the proviso they would match fund and bring their property up to the Decent Home standard (The Decent Homes Standard sets out guidance which applies to the social rented sector in England. This means that you would not have to pay the Council Tax levy until the property has been empty for up to 24 months. Shelter Scotland is also a good source of information for owners of empty homes. Internal Scottish Government analysis estimates that if a 100% premium were added to council tax on all homes empty for 12 months or longer across Scotland, this could generate around 35 million in additional council tax each year, although this figure assumes no behavioural change as a result of increased council tax charges (Scottish Government 2023). Background Tackling empty homes remains a priority for the Scottish Government. Visit 'Set cookie preferences' to control specific cookies. Although successful, the small numbers of empty homes brought back into use in such examples highlights the resource intensive nature of the work of dedicated empty homes staff and empty homes partnership services such as the Empty Homes Doctor (Greenland and Coupland 2014). Empty Homes programme: guidance and allocations - GOV.UK Please note that the Empty Homes Matchmaker Scheme is not an estate agency, and all negotiations and sales processes take place between the seller and buyer. Thirdly, the support of partners was described as being critical to achieving these outcomes. Housing statistics: Empty properties and second homes Secondly, there was available capacity and expertise linked to Glasgow City Council's three EHOs roles.