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Wednesday, January 15, 2025

Scotland Faces Housing Challenges With Empty and Second Homes

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New figures reveal the scale of housing challenges across Scotland, with thousands of homes remaining empty or used as second residences.

Data from September 2024 shows 21,606 properties are registered as second homes, while 43,538 homes have been empty for over six months.

Of these, 31,596 have been empty for more than a year, classified as long-term empty homes.

Additionally, 47,779 properties were exempt from council tax as unoccupied and unfurnished for less than six months.

These statistics highlight the ongoing housing issues facing communities nationwide.

Second homes decreased by 10% compared to 2023, marking the largest drop in a decade.

The introduction of a 100% council tax premium on second homes in April 2024 is thought to be a significant factor in this decline.

Empty homes saw a 6% decrease, likely due to updated data specifications clarifying only properties vacant for over six months are included in the count.

However, the number of long-term empty homes rose by 12%, while unoccupied exemptions saw a slight 1% increase.

Meanwhile, housebuilding activity has also slowed.

In the year to September 2024, there was a 12% decrease in housing starts and a 10% drop in completions across all sectors.

A total of 19,828 homes were completed, while 14,768 new builds were started.

Private sector completions reached 15,056, with 11,697 new builds initiated, but these figures represent the lowest levels in years outside of the pandemic.

The social sector contributed 4,772 completions and 3,071 starts, also reflecting significant declines.

Social housing completions were at their lowest since 2017, while starts were among the lowest in two decades.

The Affordable Housing Supply Programme reported mixed progress.

Between September 2023 and September 2024, 6,682 homes were approved, a 9% increase.

However, starts fell by 8% to 5,925, and completions dropped by 22% to 8,413.

These homes play a vital role in meeting the Scottish Government’s target of 110,000 affordable homes by 2032.

By September 2024, 24,382 affordable homes had been completed, including 18,539 for social rent, 3,501 for affordable rent, and 2,342 for affordable homeownership.

Despite progress, these figures underline the need for accelerated efforts to tackle housing shortages, particularly in rural and island communities.

The decline in private and social sector housebuilding, coupled with rising numbers of long-term empty homes, presents a significant challenge for policymakers and developers.

Affordable housing remains critical to ensuring that communities across Scotland thrive.

Continued investment, innovative solutions, and local engagement will be essential to address these pressing issues effectively.

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