I own an empty home, what are my options?
How we can help
We’re experts at providing advice on how to address some of the most common problems faced by owners of empty homes. We understand that there isn’t always an easy fix but, whatever the situation, we can help you to assess your options and guide you through the process of selling, letting, or renovating your empty home as quickly and easily as possible.
Most councils now have dedicated Empty Homes Officers. Where possible, we will put you in touch with them for local assistance. If there isn’t an Empty Homes Officer in your area, we’ll provide advice to you directly.
Council tax
One of the key things to consider regarding your empty home is council tax. There are regulations regarding council tax on empty properties that can both help you or cause you to incur significant costs depending on your intentions, so it’s important to understand them.
If your home becomes empty:
For the 1st year – You will be entitled to a 10%-50% discount on your council tax bill. The discount value is determined by each local authority individually. If your property is unfurnished, it may be totally exempt from council tax for the first 6 months. If the property is undergoing major repair or structural alterations, the exemption may extend to 1 year.
After the first year – An empty home premium or ‘levy’ could be applied, however, if your property is being actively marketed for sale or rent, the premium cannot be applied until the property has been empty for 2 years.
If you buy or inherit an empty home:
For the first 6 months – if you can produce evidence to establish that it is undergoing repairs or renovations that contribute to the improvement of the property; you are entitled to a discount of between 10-50% on your council tax bill. The discount amount is set individually by each local authority. If the property requires major work to render it habitable, or is undergoing structural alternation, the discount will bea default 50%.
After 6 months - local authorities may extend the discount at their discretion where they are satisfied that the work is still ongoing. If they do not extend the discount, the property may become liable for the council tax premium. This allows the council to charge double council tax if the property has been empty for more than a year. As the year runs from the date the property originally became empty (not the date you purchased it), this could mean your council tax bill goes from the discounted rate to twice the normal rate.
Example: Person A buys a property which has already been empty for 6 months. They provide evidence to their local authority that renovation work is being undertaken and a 50% council tax discount, on the standard average rate of £140 per month for an occupied property, is applied for the first 6 months of their ownership. Their bill drops to £70 per month. After 6 months they have completed the renovation work, but the property will remain empty. As it has now been 1 year since the property became empty, the local authority decides to apply the council tax levy, which is an additional 100% on top of the standard rate of £140. Therefore, person A’s council tax has gone from £70 to £280 per month, an increase of 300%.
What can you do if facing double council tax on your empty home?
Local authorities can exercise discretion to delay applying the premium in individual cases. Examples of where they may do this are:
- You continue to work on the property
- The property is taking a long time to sell/let in a stagnant market, despite being priced appropriately
- The Empty Homes Officer has assessed that the owner is taking positive steps to re-occupy their property and a delay to applying the premium would help the owner to bring the property back into use sooner.
If you have any questions, contact your local Empty Homes Officer, their details can be found here. If your area doesn’t have an Empty Homes Officer, contact us.
Selling your empty home
It’s important to be realistic about your property’s value based on its condition, type and the local housing market. Owning an empty property can be a financial burden, the longer it stays unoccupied, the more of a financial drain it might become. In some cases, it will be in your best interest to sell your empty home in whatever condition it’s in. There are several options for doing so:
The open market
Whatever condition your empty property is in, it is still worth considering the open market. Selling on the open market provides the best reach overall for any property and shouldn’t be overlooked, even if your property has been empty for a long time or requires lots of work.
Local authority Buy-Back schemes/Open Market Purchase Schemes
Many local authorities in Scotland operate Buy-Back or Open Market Purchase Schemes. These schemes look to purchase homes to increase housing stock in areas where there is demand for affordable housing. Whilst some councils only focus on ex-council properties, an increasing number of local authorities will consider purchasing any property that meets their criteria. Using this route to sell your home would provide more affordable housing in your area, helping to tackle the housing emergency. To learn more about the housing emergency, visit Shelter Scotland - Housing Emergency.
Contact your councils Empty Homes Officer to find out whether they operate a Buy-Back or Open Market Purchase Scheme and to get further information. You can find their details here. If your area doesn’t have an Empty Homes Officer, contact us.
Matchmaker Schemes
Some local authorities in Scotland participate in a Matchmaker Scheme to help connect owners looking to sell their empty home with people who want to buy them. It is a free service and there are a huge number of registered buyers. So, if you register as an owner, you will likely receive significant interest in your property.
You can register for the Aberdeen City, Aberdeenshire and Perth and Kinross schemes via these links:-
Aberdeen City Council matchmake to sell and matchmake to rent schemes
Aberdeenshire Council matchmaker scheme
Perth and Kinross Council Matchmaker
Or click here to register for the other participating authorities, listed below, via our
Angus, Argyll & Bute, East Ayrshire, East Lothian, Falkirk, Fife, Glasgow City, North Ayrshire, Renfrewshire, Scottish Borders, Stirling, West Dunbartonshire.
Auction
Selling at auction is a great option, especially for those looking for a quick sale, or for a property that might not be typical for the open market. Auction House have put together this handy 10 step guide for owners considering selling at auction: Sellers Route to Auction Success | Auction House
Other auction houses include:
• Future Property Auctions
• Property Auctions Scotland
• Prime Property Auctions
The Scottish Empty Homes Partnership does not specifically endorse any auction houses, so make sure you do your own research.
Homes For Good
Homes For Good (HfG) is an award-winning social enterprise property management company founded in 2013. They have a strong presence in Glasgow, Ayrshire and the South of Scotland and provide affordable, high-quality homes for a wide range of tenants, especially those with high housing needs.
Homes For Good purchase suitable properties, in any condition, at a fair price. This process is straightforward, hassle-free and can be completed quickly. They then let these properties out at social and affordable rates, making it a socially conscious way to sell your property.
Homes For Good prides itself on being a highly people-focused company that prioritises the needs of the tenants. If you’d like to find out more about selling your home via Homes For Good, then visit the Home for Good Website here: Home - Homes for Good
Renting out your empty home
Owning an empty property can be a financial burden, the longer it stays unoccupied, the more of a financial drain it might become. In contrast, renting your property out could be a useful source of income. Outside of renting on the open market, these are some options we would strongly encourage you to consider:
Private Sector Leasing Schemes
Some local authorities run Private Sector Leasing (PSL) schemes. This can be a good option if you have inherited a property that you would like to rent out but are concerned about the time commitment of managing a property/being a landlord. The local authority leases your property from you for a contracted period, most commonly 1 year, 3 years or 5 years. During this period, they fully manage the property while providing you a guaranteed monthly income, whether the property is occupied or not. The property would be added to their housing stock and then rented out to a tenant in need. During a period of crisis in housing in Scotland, this would directly contribute to reducing homelessness. To learn more about the housing emergency, visit Shelter Scotland - Housing Emergency.
Contact your Empty Homes Officer to find out if they run a PSL scheme - EHO contacts. If your area doesn’t have an Empty Homes Officer, contact us.
Social Letting
Homes For Good (HfG) is an award-winning social enterprise property management company founded in 2013. They have a strong presence in Glasgow, Ayrshire and the South of Scotland and provide affordable, high-quality homes for a wide range of tenants, especially those with high housing needs.
They offer a socially conscious option for renting out property and work with empty homeowners who may be looking to become landlords for the first time, as well as established landlords.
Barry Sweeney, who leads the Empty Homes Team at Homes for Good, says:
“Our dedicated team will ensure that potential new landlords receive full support. Putting a property on the rental market can be daunting, with many responsibilities and challenges. At Homes for Good, we simplify the process and provide owners with comprehensive support throughout their journey. Homes for Good also ensures that we manage their property with care, attention and detail.”
If you would like to learn more about renting out your property through Homes for Good, visit their website here.
Renovating your empty home
Whether you want to renovate your empty home to live in yourself or renovate it with a view to rent it, or sell it, there are some great cost savings and incentives available to help you finance your empty home renovation, as well as some more general advice you should consider.
VAT
If you are bringing a home that has been empty for between two and ten years back into use, then you may be eligible to pay a reduced rate of VAT (currently 5%) on renovation work, goods and materials. The 5% rate is applied by the contractor at point of purchase, and they will need proof of the properties empty period to do so. You can obtain this proof by contacting your areas Empty Homes Officer, their details can be found here. If your area doesn’t have an Empty Homes Officer, contact us. For more details on the VAT scheme please see our 2 Years VAT guide or visit the relevant HMRC page - VAT notice 708.
Homes that have been empty for over 10 years that are going to be brought back into use for residential purposes by yourself, your family or your relatives (either as a family home or holiday property) may be eligible for zero rated VAT. This would apply to building materials you have purchased as well as supplies bought by, and work carried out by, a contractor during renovation. You will need to pay the applicable rate of VAT and then claim in back from HMRC on completion of work. Please note, properties bought by businesses will not qualify for zero rated VAT under this scheme. For more details, please see our 10 Years VAT guide or visit the relevant HMRC page - VAT notice 708.
Merchant Discounts
Some companies offer discounted services or other offers to owners of empty homes. A list of these merchants a can be found here:
Merchant Discounts | Scottish Empty Homes Partnership
Please be aware, we are in the process of reviewing all available discounts so some information may be out of date. If you see a company listed that you would be interested in accessing a discount from, contact us.
Loans/Grant Funding
A small number of local authorities offer grant and/or loan funding for the renovation and restoration of empty homes. If you want to find out what funding may be available for your project, contact your Empty Homes Officer (EHO) directly, a list of EHO contact details can be found here.
Energy Efficiency
Consider energy efficient measures when bringing your empty home back into use, for detailed information on why and how, read our full guide here: Energy Efficiency Guide
Keeping your empty home safe
Even if your empty property is in good condition now, it is likely to be at risk of vandalism and criminal damage if it remains empty, and to have higher maintenance and repair costs than occupied properties. While your property remains empty, it is important that you take the time to ensure it does not deteriorate. We recommend that you:
• Maintain gardens and exterior spaces
• Check the property regularly
• Repair any accidental damage or vandalism
• Hang curtains or blinds so it looks occupied
• Leave a contact telephone number with neighbours
• Run water regularly
• Ensure property is adequately insured
You should note that many insurance policies are invalidated if the property is left empty for 1-3 months or more. Check your insurance policy to confirm the details for your empty home. Remember that if you have a mortgage, you are legally obliged to have home insurance, so if your policy has become invalid because the property is empty, you must contact your insurance providers.
Case Study
Feel like getting inspired? Visit our blog to read about Nick’s empty home renovation - We spoke to Nick about his renovation project in Dumfries