Committee
Local Government, Housing and Planning Committee 24 February 2026 [Draft]
24 Feb 2026 · S6 · Local Government, Housing and Planning Committee
Item of business
Subordinate Legislation
Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2026 [Draft]
Good morning, convener, and thanks for the opportunity to speak to the draft regulations.The policy was first explored in partnership with local government through the joint working group on council tax reform, in keeping with the spirit of the Verity house agreement. That work was informed by the joint public consultation on the council tax treatment of second homes and long-term empty homes, which sought views on increasing flexibility for councils and received significant engagement from stakeholders and members of the public.Taken together, that engagement recognised that decisions about local taxation and housing pressures should be informed by collaboration and evidence, while, ultimately, respecting the democratic accountability of local authorities.The regulations that are before the Parliament deliver on a key priority of the Government: to deliver a fairer housing and taxation system. They will give effect to powers that were created by the Housing (Scotland) Act 2025. That act amended the legislative framework that governs council tax variation for unoccupied dwellings and provided the opportunity to remove the previous statutory cap on the level of premium that local authorities may apply to second homes and long-term empty homes.The regulations have two principal objectives. First, they establish and maintain a national default premium of 100 per cent for second homes and long-term empty homes. Secondly, they remove the previous statutory cap and empower councils to determine the appropriate premium in their own area—whether that is to apply the 100 per cent default, increase the premium above that level, reduce it, apply no premium at all or offer a discount. In doing so, the regulations place decisions about the balance of housing use firmly in the hands of councils, which are best placed to assess their own housing markets and community circumstances.Further, the Housing (Scotland) Act 2025 enables the Scottish ministers to issue statutory guidance to which local authorities must have regard. Guidance is currently being agreed between the Scottish Government and the Convention of Scottish Local Authorities. It aims to support a consistency of approach, ensure proportionality and highlight circumstances in which applying a premium may not advance the policy intent.It is important to emphasise that this is an enabling instrument. It does not mandate any increase in council tax. Any decision to vary the premium will rest with individual local authorities, which are democratically elected and accountable to their own communities.Housing markets differ significantly across Scotland. The presence and impact of second homes and long-term empty homes varies between urban, rural and island communities. In some areas, high levels of unoccupied dwellings can affect housing availability for permanent residents and place pressure on local supply. In others, local dynamics may differ. The regulations recognise that local authorities are best placed to assess their own housing pressures, affordability challenges and sustainability considerations. The changes will put councils front and centre in determining how council tax can support the effective use of housing stock in their area.Alongside that flexibility, important safeguards remain in place. Existing statutory exemptions and discounts are unaffected by the regulations. In addition, guidance will make it clear that councils should act proportionately and in line with the purpose of the legislation, including in circumstances in which a dwelling is unoccupied because a liable person is required to live away from home because of their employment in the armed forces or healthcare. The intention is to ensure that greater local flexibility is balanced with fairness and recognition of legitimate circumstances.In summary, the regulations deliver on the powers that were created by the Housing (Scotland) Act 2025 to remove constraints, maintain a clear national framework and trust local authorities to make accountable decisions about how council tax supports housing policy in their communities. They are enabling, proportionate and grounded in earlier partnership work with local government.
In the same item of business
09:34
The Convener
Green
Our next item is the taking of evidence on the draft Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2026. We are joined by...
The Cabinet Secretary for Finance and Local Government (Shona Robison)
SNP
Good morning, convener, and thanks for the opportunity to speak to the draft regulations.The policy was first explored in partnership with local government t...
The Convener
Green
That makes it clear that the Verity house agreement is working and a lot of collaboration is happening.I will start off with a general question that gets at ...
Shona Robison
SNP
:I can share some figures with you from a period of time. In 2012, the number of second homes peaked at 40,599. Between 2019 and 2023 it remained stable, and...
James Messis (Scottish Government)
Absolutely. We are in regular communication with local authorities through the Institute of Revenues, Rating and Valuation. We get regular updates on how ind...
The Convener
Green
Evelyn Tweed, that connects to the question that you were going to ask. Do you want to go any further with it?
Evelyn Tweed (Stirling) (SNP)
SNP
I do not know whether you want to say any more, cabinet secretary. You alluded to how the impact will be monitored. Will you say something about how that wil...
Shona Robison
SNP
:It will be done through the intelligence that local authorities provide. Given that the regulations empower them to take local decisions according to their ...
James Messis
We also collect aggregate data, so that we get an aggregated picture of the total number of second homes and long-term empty homes. We will also work with sp...
The Convener
Green
I have a question about monitoring the 10 per cent drop in the number of second homes in 2024, which was before the regulations were made. Part of the point ...
Shona Robison
SNP
:There will be a level of information collected through the work that local authority empty homes officers are doing—I think that is the correct term for the...
Alexander Stewart (Mid Scotland and Fife) (Con)
Con
Given that the powers are due to come into effect on 1 April, when does the Scottish Government anticipate publishing the guidance on them?
Shona Robison
SNP
:When do we intend to publish the guidance, James?
James Messis
It will be agreed with COSLA, cleared by COSLA leaders and subsequently published, if the instrument is approved.
Shona Robison
SNP
:I should add that it will be possible for local authorities to introduce the change in-year, if they so wish. There is not an issue of not introducing it be...
The Convener
Green
We will move on to discuss unintended consequences.
Mark Griffin (Central Scotland) (Lab)
Lab
Good morning. I support the regulations, as I think that they are absolutely the right thing to introduce, especially in the context of the housing emergency...
Shona Robison
SNP
:Absolutely. We would expect that to be enforced by ensuring that everyone who is operating a short-term let is operating with a licence. I can say that the ...
James Messis
You are quite right, cabinet secretary. Mr Griffin, you alluded to the 140 days of intention to let, but there is a 70 nights actually let criterion as well....
Shona Robison
SNP
:The Barclay review identified that loophole and the requirement for a minimum number of actual lets was brought in to avoid it.
Mark Griffin
Lab
:With regard to the 10 per cent drop in the number of second homes in 2024, is there any indication of the number of homes that switched to short-term lets?
Shona Robison
SNP
:We will see whether we can provide that information; I do not have it in front of me. It may be here, but unless anybody has it to hand, we can provide it l...
James Messis
Certainly. I mentioned earlier that we will be working with some local authorities to understand what is happening beneath those aggregate figures. That will...
Mark Griffin
Lab
:My second question is on council tax premiums for long-term empty homes. There is a concern that the higher premiums may potentially affect an owner’s abili...
Shona Robison
SNP
:My understanding—I am just trying to find the information in my notes—is that there is a grace period, if you like, for things such as repairs and redecorat...
James Messis
Absolutely.
Shona Robison
SNP
:If someone is upgrading a property, they will have a six-month grace period from paying the premium.
The Convener
Green
I will now bring in Willie Coffey, on the wonderful theme of fairness.
Willie Coffey (Kilmarnock and Irvine Valley) (SNP)
SNP
Good morning. It is good to hear the extent of your collaboration with COSLA on the policy and the flexibilities that have been introduced. However, one issu...