Council tax for second and empty homes, and thresholds for non-domestic rates: consultation analysis

1: Introduction

Background

This report presents analysis of responses to a public consultation on Council Tax for second and empty homes, and thresholds for non-domestic rates.

The consultation sought views on potential changes to the Council Tax system and non-domestic rates thresholds for self-catering accommodation in order to take forward Scottish Government commitments to a fairer housing and taxation system.

The consultation

The consultation, which opened on 17 April 2023 and closed on 11 July 2023, asked 25 questions. The consultation paper is available here on the Scottish Government’s website.

Profile of responses

In total 981 responses were received, of which 73 were from groups or organisations and 908 from individual members of the public.

Respondents were asked to identify whether they were responding as an individual or on behalf of a group or organisation.

A breakdown of the number of responses received by respondent type is set out in Table 1 below, and a full list of group respondents appended to this report at Annex 1, Table A.

Table 1 – Respondents by type

• Campaign group or union - 5
• Community or Development Trust - 6
• Housing - 4
• Local authority - 28
• Public body or agency - 7
• Representative or professional body - 10
• Tourism, including accommodation provider - 12
• Other - 1
• Organisations - 73
• Individuals - 908
• All respondents - 981

Local authorities were the largest group of organisational respondents, followed by Tourism organisations and Representative or professional bodies.

The individual respondent group includes around 90 respondents who drew on information put together by Living Rent.

Respondents were also asked if they owned a second home, a long-term empty home or if they operate a short-term let /self-catering accommodation^[1], and frequency information is set out in Table 2 and below.^[2]

Table 2: Ownership of second homes, long-term empty homes or short-term let/self-catering accommodation

• Owner of a second home - 283
• Short-term let/self-catering accommodation operator - 96
• Owner of a long-term empty home - 8

Of the 283 respondents who reported that they own a second home, only 28 second home owners indicated that they also operate a short-term let/self-catering accommodation (27 who own a second home and operate self-catering accommodation and one additional respondent who owns a second home, an empty home and operates self-catering accommodation). However, their further comments suggest that some of the remaining 253 second home owners may sometimes rent their second home out.

Of the 96 respondents who reported that they operate a short-term let/self-catering accommodation, 68 respondents did not select any other options, and 27 indicated that they own a second home.

Respondents were also asked about the part or parts of Scotland to which they were connected.^[3] Respondents were able to select more than one area. The most-frequently selected areas are set out in Table 3 below, and a full list is provided at Annex 1, Table C.

Table 3: Council areas to which respondents were connected

• City of Edinburgh Council - 182
• Glasgow City - 140
• Highland Council - 135
• Argyll and Bute Council - 107
• Fife Council - 85
• All of Scotland - 66

Around 180 respondents noted a connection to more than one area, and many of these respondents also reported that they were the owner of a second home.

Analysis and reporting

The report presents a question-by-question analysis of answers to the closed questions and further comments at open questions. A comment rate, rounded to the nearest five comments, is given at each question.

The analysis of further comments is qualitative but may give an indication of the most frequently made points or indicate when most (half or more) or many (more than a quarter but less than half) of those commenting made a point.

As with any public consultation exercise, it should be noted that those responding generally have a particular interest in the subject area. Therefore, the views they express cannot necessarily be seen as representative of wider public opinion.

A glossary of terms and a list of acronyms used is provided at Annex 2.