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Chamber and committees

Meeting of the Parliament [Draft]

Meeting date: Tuesday, November 19, 2024


Contents


Scottish Empty Homes Partnership

The Deputy Presiding Officer (Liam McArthur)

The final item of business is a members’ business debate on motion S6M-13967, in the name of Gordon MacDonald, on celebrating the Scottish Empty Homes Partnership. The debate will be concluded without any question being put. I invite members who wish to participate in the debate to press their request-to-speak buttons, and I call Gordon MacDonald to open the debate—you have around seven minutes, Mr MacDonald.

Motion debated,

That the Parliament celebrates the work of the Scottish Empty Homes Partnership (SEHP) and its reported success in bringing almost 11,000 long-term empty properties back into use since its establishment in 2010; understands that 1,875 long-term empty homes were brought back into use in 2023-24 alone, a record annual figure for the partnership; recognises the role of the SEHP in facilitating collaborative work between Shelter Scotland, local authorities and the Scottish Government, which it understands has invested over £3.7 million in the partnership to date; notes the view that joint efforts to bring long-term empty properties back into use must continue, with over 46,000 properties reportedly still identified as empty or void across Scotland, including 7,200 in the City of Edinburgh Council area; further notes the belief that initiatives such as a reduction in VAT by the UK Government for repairs and improvements could facilitate the investment required to support households into a further 46,000 short-term unoccupied and vacant homes, whether council home voids, housing association stock awaiting repairs, or private properties lying empty; believes that SEHP’s recent milestone is a vital step towards achieving the Scottish Government’s ambition to tackle the housing emergency and provide a further 110,000 affordable homes by 2032; understands that over 131,000 social and affordable homes have been provided by Scottish National Party administrations since 2007 and that this is the highest figure per head of population in the UK; further understands that more than 21,000 homes have already been delivered against the 2032 target; highlights that over £600 million is reportedly being committed to the Affordable Housing Supply Programme in 2024-25, despite what it sees as unprecedented pressure on Scotland’s public finances as a result of rising costs and the budgetary decisions of the UK Government, and notes the calls on the UK Government to use its upcoming Budget to reverse what it sees as harmful cuts to Scotland’s capital funding allocation, to enable the Scottish Government to invest further in the provision of warm, affordable housing for all.

17:12  

Gordon MacDonald (Edinburgh Pentlands) (SNP)

Thank you, Presiding Officer. I also thank those members who supported the motion so that the debate could take place.

The Scottish Empty Homes Partnership, which was created in 2010 and is funded by the Scottish Government and hosted by Shelter Scotland, exists to encourage Scotland’s approximately 46,000 privately owned long-term empty homes back into use as affordable homes. Since 2010, the partnership has facilitated collaborative work between Shelter Scotland, local authorities and the Scottish Government to tackle the blight of long-term empty homes in our towns and cities and in rural Scotland.

The Indigo House audit report for the Scottish Government, “Bringing empty homes back into use: an audit of privately owned empty homes in Scotland”, found that refurbished empty homes can be brought back into use at a

“lower cost than new build and can provide positive economic and social impacts. In rural areas empty homes strategies can help revive and sustain fragile communities, particularly where second homes contribute to housing pressure, and in urban areas, city and town centre regeneration can help reverse area decline.”

To date, the partnership has seen 10,889 homes brought back into use, mainly as affordable housing, and 2023-24 saw the highest annual number of properties brought back into use, at 1,875.

The empty homes audit report found that the most effective way of bringing properties back into use is through the employment of an empty homes officer to “prioritise empty homes action”. It also found that an authority’s empty homes officer is a

“critical resource in supporting owners with information and advice”

and influencing them to bring homes back into use.

However, of the 32 local authorities in Scotland, only 28 have at least one empty homes officer or the equivalent. The remaining four councils have no one in that position, although they have more than 2,200 long-term empty homes.

Those authorities should reconsider, particularly in the light of the auditor’s value-for-money assessment, which found that, during the period under review, empty homes were brought back into use for the equivalent of £2,260 per home. The Scottish Government provided 38 per cent of the funding to councils, while other parties provided the balance.

Across Scotland, housing emergencies have been declared in a number of council areas, including Argyll and Bute, Edinburgh, Glasgow, Fife, West Dunbartonshire, West Lothian, Scottish Borders, South Lanarkshire, Angus, Dumfries and Galloway and Aberdeen. The Scottish Empty Homes Partnership’s annual report for 2023-24 highlighted that those councils had more than 12,000 homes lying empty for more than a year.

Why are so many private homes lying empty? Many owners lack the resources to afford the cost of repairs, especially if they have inherited a property. They might consider that, because of local housing market conditions, making that investment might not be financially prudent, or they might have problems finding the tradesmen and services required to complete renovations.

Owners might have personal reasons for not wanting to sell, through emotional attachment to a family home, long-term hospitalisation, imprisonment or mental health issues. There might be difficulty in locating or engaging with owners of derelict or empty properties, especially when the owner is not resident in Scotland.

The audit report found that local empty homes officers, or EHOs, are a

“critical resource in bringing empty homes back into use,”

and that

“there is a direct correlation between the amount of EHO resource and the amount of empty homes brought back into use.”

It continued:

“A successful EHO acts as a trusted adviser, co-ordinator and sign posts owners to other interventions. Their success in getting empty homes back into use is mainly due to the provision of information, advice and influencing empty home owners.”

The report also said:

“it is clear that most EHO resources are stretched, and if more of this resource was available and targeted at the areas with the highest incidence of empty homes, then more could be achieved.”

As a representative of the capital, I should highlight the fact that there are 7,200 privately owned empty properties in Edinburgh; there are a further 1,700 second homes; and there are around 8,400 properties being used for short-term lets to tourists. At the same time, we have 5,000 families living in temporary accommodation.

The Scottish Government has provided 131,000 social and affordable homes since 2007—the highest number per head of population in the United Kingdom—with a further 110,000 affordable homes to be built by 2032. However, the quickest and most cost-effective way of putting a permanent roof over those families’ heads is by bringing more properties back into use, which is affordable.

One way to assist that would be for the Labour Government to reduce VAT on the costs of property repairs and maintenance. Currently, there is 20 per cent VAT on repairs and maintenance work on a property, although if renovation or alteration work is being done on empty premises, that is reduced to 5 per cent, but only if the property has not been lived in for at least two years immediately preceding the start of the work. Why should property lie empty and further deteriorate before work can begin, possibly at a higher cost because it needs more work, given that it has lain empty for two years? A reduction to 5 per cent VAT for such work on all empty homes by the Labour Government would help financially and bring those homes back into use sooner. That step would be particularly helpful now, as inflation in construction materials has risen by approximately 15 per cent to 20 per cent since 2020 and is forecast to increase by a further 15 per cent in the next five years.

The Scottish Empty Homes Partnership has successfully brought almost 11,000 homes back into use, with a further 1,000 expected this year.

I welcome the fact that a number of councils are expanding their empty homes service, with the appointment of additional officers funded by the council tax surcharge on long-term empty and second homes. I encourage those few councils that do not have an empty homes officer in place to appoint one as a matter of urgency.

I would encourage owners of empty homes—regardless of the reason for those homes being empty—to arrange to meet their local officer and discuss how they can provide a family home in their area. The list of contact email addresses and telephone numbers can be found on the Scottish Empty Homes Partnership website.

17:20  

Meghan Gallacher (Central Scotland) (Con)

I begin by congratulating Gordon MacDonald on securing this debate on the Scottish Empty Homes Partnership.

There are tens of thousands of abandoned homes across Scotland, and bringing empty homes back into use is essential to tackling our housing emergency. That is why, like all members, I applaud the success of the Scottish Empty Homes Partnership in bringing almost 11,000 long-term empty properties back into use since its establishment in 2010. That is potentially 11,000 families or single persons rehomed, thanks to the hard work and efforts of Shelter Scotland, local authorities and—credit where it is due—the Scottish Government.

Bringing empty homes back into use is not only good for people living in the area; it is good for local economies. In rural communities, it helps to address issues such as depopulation. However, we will not tackle the housing emergency without investment. As I will go on to explain, there are other policies that we need to consider to ensure that we are tackling the housing emergency.

It would be right to point out that the empty homes scheme is not so straightforward, as Gordon MacDonald mentioned in his opening speech. There are local authorities that do not have an EHO in their own services for the public—an officer who would help to bring more empty homes out of the state that they are in and into use. Moray Council, for example, had to take a difficult decision to cut its empty homes service, due to budget pressures. That re-emphasises the need to support local government and ensure that the Government funds local government properly. Otherwise, these vital services will need to be scaled back and we will therefore not tackle the housing emergency.

It will be interesting to note how council budgets this year balance the need to grow the housing supply with juggling the millions of pounds-worth of cuts that could be administered by the Government. That is especially relevant as the Government has introduced its Housing (Scotland) Bill, which will add a £5.5 million burden on to overstretched councils.

The motion perhaps looks at the housing situation in Scotland through rose-tinted glasses. When we scrape beneath the surface and take out all the spin, we find that the Scottish Government’s target of achieving 110,000 affordable homes by 2032 is, at this stage, unachievable at best. At present, only about 22,800 homes have been completed. If we do the maths, we find that, even if the Government manages to speed up house building without driving away investment due to its intention to bring in rent controls, it will not reach its own target until 2035. If we combine that with the recent cuts to the housing budget, it is easy for us to understand why the Scottish Government is struggling to fulfil its own targets.

I am not the only one to have highlighted the issue of unachievable targets in the house-building strategy that is in place. Shelter has commented on the matter, as have other sector bodies.

I again raise the issue of the Housing (Scotland) Bill. Although the bill has “Housing” in its title, it does not build one single home. Instead, the rent controls aspect will drive away investment—roughly £3.2 billion of developer investment so far.

Having declared a housing emergency, the Scottish Government must now back its words with significant actions. Although we of course welcome the success of the Scottish Empty Homes Partnership in managing to bring so many properties back into use, we need to deliver more affordable homes, and we need to tackle the housing and homelessness emergency in Scotland.

17:24  

Ben Macpherson (Edinburgh Northern and Leith) (SNP)

I, too, pay tribute to my colleague Gordon MacDonald for bringing this important issue to the chamber. It is an important thematic area of housing policy, and for Edinburgh MSPs such as me and Gordon MacDonald, it is the most significant area in which we receive casework.

Importantly, I pay tribute, too, to the Scottish Empty Homes Partnership and everyone who is involved in it. As colleagues have set out, it is an initiative that has made a difference for the many hundreds of people who are now in those empty homes. They now have a warm and secure roof over their heads—something that is fundamental in enabling anyone to succeed in fulfilling their potential. We want all the citizens whom we represent to have that.

The work of the Scottish Empty Homes Partnership is on-going—the process still has some time to run. That is why it is important that, while we mark the partnership’s success today, we look forward to seeing what more the collaboration can achieve.

I also pay tribute to Shelter for its role in that regard. The organisation, which was founded by a Scottish person, Sheila McKechnie, has gone on to make a huge difference not only in Scotland, but across the United Kingdom. The organisation is a valued partner in our parliamentary work, and it assists many hundreds of people in Scotland with a variety of housing issues.

As the motion states, the Scottish Empty Homes Partnership has enabled many more properties, including here in the capital city, to be brought back into use. However, the fact that there are—or there were, when the motion was lodged—still 7,200 empty properties in the city of Edinburgh illustrates the work that still needs to be done.

I pay tribute to the Minister for Housing and to the Scottish Government for the attention that has been brought to Edinburgh’s housing emergency in the past year, and for their collaboration with the City of Edinburgh Council on converting void council houses into usable social housing again.

There has been much progress, as illustrated by recent figures released by the City of Edinburgh Council. The minister referred to those in his most recent statement to Parliament, and I am sure that he will touch on them again in summing up. It would be good to get an update on where that work is now, and to get a continued commitment from the Government to prioritise Edinburgh, where the housing crisis in urban Scotland is most acute, so that we can get many more of those council properties, and housing association and registered social landlord properties, back into use and have people occupy them.

I know from sitting face-to-face with constituents that there is nothing more frustrating for people who are in a homelessness situation than knowing that there are empty properties in the area but that they cannot move into them because they have not yet been brought back into use.

The issue applies not only to the public sector housing estate across the country, but to private housing. Good points have been made around VAT. There was an interesting debate not so long ago in which the Scottish Labour Party, and Mark Griffin in particular, committed to pushing UK colleagues to take action on VAT on repairs. We all need to see progress on that, for a variety of reasons.

The Scottish Government has used its taxation powers to try to incentivise bringing empty homes back into use. Perhaps more needs to be looked at in that regard, but the actions that have been taken are undoubtedly making a difference. It would be helpful for the minister to provide an update, if he is able to do so, on compulsory sale orders. I know that the responsibility for that sits primarily with the Cabinet Secretary for Rural Affairs, Land Reform and Islands, but that power could make a difference, and I know that several members in the chamber would like to see compulsory sale orders introduced.

I thank Parliament for the time to discuss this important issue, and I pay tribute to my colleague and to everyone who is involved in the Scottish Empty Homes Partnership.

17:29  

Foysol Choudhury (Lothian) (Lab)

I congratulate Gordon MacDonald on bringing the debate to the chamber.

The housing emergency is undoubtedly one of the greatest challenges that we face. As the motion states, the empty homes issue in Edinburgh is particularly critical. A total of 7,200 homes, with a worth estimated by Admiral of £1.8 billion, are sitting empty; that is enough space in which to house every single person living in temporary accommodation in Edinburgh. Bringing those homes back into use is key if we want to tackle the housing emergency.

That is why I join other members in welcoming the work of the Scottish Empty Homes Partnership. After all, bringing 1,800 homes back into use is worthy of praise. In the partnership’s most recent annual impact report—for 2024—there are numerous examples of empty homes leading to antisocial behaviour, increased fire risk and water ingress damaging neighbouring properties. By bringing homes back into use, we can mitigate those risks and make communities more welcoming.

I note, too, the low climate impact of bringing homes back into use. I recently sponsored an event with Historic Environment Scotland, which said that

“The Greenest building is the one that already exists”,

and nowhere is that clearer than in the work of the Scottish Empty Homes Partnership.

One example is Barns house in the Borders. It was named best environmental retrofit, having sat empty for 25 years before being brought back into use with full energy efficiency. That project was completed through the work of an empty homes officer. The empty homes audit report, “Bringing empty homes back into use: an audit of privately owned empty homes in Scotland”, found that empty homes officers were

“the most effective means of bringing properties back into use”.

I am pleased to note that, at the time of the report’s publication, the City of Edinburgh Council was in the process of hiring a second empty homes officer.

Although the partnership’s work is necessary and welcome, the Scottish National Party cannot simply pat itself on the back for a job well done. The number of empty homes has still increased over the past 10 years, and there are record numbers of people in temporary accommodation. Moreover, earlier this year, the affordable housing supply budget was cut by almost £200 million. That is a direct hit on our ability to tackle the housing emergency, and it is not the action of a Government that is fulfilling its ambition of tackling the housing emergency.

Following the UK Government’s budget, the Scottish Government has the money to tackle these issues, and it must now deliver. It should begin by reinstating the cut to the affordable housing supply programme and empowering councils to take more action on empty homes.

17:33  

Ariane Burgess (Highlands and Islands) (Green)

I, too, appreciate the fact that Gordon MacDonald has brought the debate to the chamber. I share with him an interest in this topic, and I know from his committee work that he is passionate about it.

I take this opportunity to highlight the success and impact of the Scottish Empty Homes Partnership. One of my very first meetings as a new MSP was with the partnership, and it certainly left a strong impression on me.

The role of empty homes officers in councils is essential, given their dedication and hard work in identifying empty homes, managing them and bringing them back into use. Argyll and Bute Council in my region was the first council to declare a housing emergency, and it quickly arranged a summit that brought together a lot of stakeholders and led to Shelter Scotland funding a second empty homes officer for the council.

The efforts of empty homes officers in co-ordinating work with home owners, local authorities and stakeholders are essential. One thing that they do really well is setting up opportunities to retrofit and renovate housing. As we heard from Foysol Choudhury,

“The Greenest building is the one that already exists”.

I am very clear that we could renovate three empty homes for the price of achieving one new-build home. At a time when finances are tight, that is an important direction of travel. I recognise that it will not necessarily solve all our housing issues, but it is important.

The stock of empty homes in Scotland is currently valued at £3.4 billion. I will not go into detail on that, because Gordon MacDonald already mentioned the Indigo House report and the information that it contains, but I will just note that that document is tremendously useful.

I also ask the Scottish Government to consider the merits of enforced sales, which Ben Macpherson mentioned, along with rental orders to address long-term empty properties. I, too, would appreciate an update on how we are progressing with that.

The fact is that not all local authorities have the same needs. A nuanced approach is needed; as has been highlighted, not all authorities have empty homes officers. Last week, in response to a ministerial statement on the planning hub, I asked whether we could include some kind of central specialist resource that would include empty homes officers, the provision of legal advice and other matters that could assist local authorities in using new powers such as enforced sale.

We need to support local authorities with resources and tools. As I have said, the environmental benefits of retrofitting existing homes cannot be overestimated; it will reduce carbon emissions and improve our energy efficiency. However, we must remember the need for a fabric-first approach to retrofitting.

In the few seconds that I have left, I will touch briefly on the benefits for communities and housing. Bringing empty homes back into use will help tackle homelessness and provide affordable housing options much more quickly for communities that need them. I am aware of some successful examples; I am thinking of what is happening in Campbeltown—again through Argyll and Bute Council—and in Perth and Kinross. I have visited both places, and I would highlight, in addition, Midsteeple Quarter, which is a community-led project in Dumfries.

The big challenge in rural and island communities is the lack of available tradespeople, which is why I am pushing for mobile training provision in traditional building skills such as lead roofing and stone masonry. Such an approach will take upskilling right to the heart of our communities.

We must share best practice and support communities and councils so that they can lead the way. We already know what needs to be done. I want to see pathways created, and I would like the Government to support them to make it easier for communities and councils to take the initiative in bringing empty homes back into use.

17:38  

The Minister for Housing (Paul McLennan)

I thank Gordon MacDonald for bringing the debate to the chamber. I also thank the Scottish Empty Homes Partnership and Shelter Scotland.

Gordon MacDonald mentioned the Scottish Empty Homes Partnership and the network of empty homes officers, which are quite rightly proud of their achievements. A total of 1,875 homes were returned to active use last year—that is the highest number on record, in a difficult situation, so my thanks go to them. Two thirds of those homes had been empty for longer than a year. That brings the total number since the partnership was established in 2010 to almost 11,000.

That is impressive, because we hear figures for unoccupied housing quoted in the press and by members as if those homes are ready to be used. We know that there are complex reasons why some such houses are currently left empty. It is important to appreciate the reasons why they are empty, and why they stay empty in the longer term. As I said, the reasons are complex, and time and perseverance are needed to unlock them.

A few members have highlighted the importance of local knowledge. That is important, as each local authority is different. It is important to recognise that the numbers of empty homes vary across Scotland.

Our investment of £3.7 million is delivering real results. That was recognised, as was mentioned, in last year’s independent audit by Indigo House on the effectiveness of our interventions, which endorsed Scotland’s approach and recognised the partnership’s crucial role. I thank everybody who picked up on that.

We have heard different ideas and approaches in the debate. I will touch on a few of the points that have been raised.

Gordon MacDonald rightly talked about the work that has gone on. VAT on repairs is an incredibly important issue. I ask Foysol Choudhury, who is the Labour member present in the chamber, to take that back to his Government to see whether it can examine that barrier to bringing empty homes back into use.

Meghan Gallacher acknowledged the work of the Government and the Empty Homes Partnership on dealing with empty homes, which is one of the areas of work that we need to expand in tackling the housing emergency. We have a good record on building houses. We build 40 per cent more per head of population than England and about 70 per cent more than Wales.

Ms Gallacher was right to talk about the importance of the broader measures. The acquisitions that we have talked about relate to bringing voids back into use. That has been identified as incredibly important in Edinburgh.

Meghan Gallacher

We want to ensure that the empty homes service in councils can thrive. Is the minister worried that, if local government is not given a good payment settlement, more services could be disrupted, which could disrupt the number of empty homes that we are trying to bring back into use?

Paul McLennan

Meghan Gallacher raises a valid point on the discussions that we have been having. When we look at the homelessness figures, we see that there are four or five local authorities on which the issue is focused.

We have been focusing on voids and empty homes. The question is what we need to do to deliver the solution. Empty homes officers are part of it, but we need to determine what else is required. That point has been raised. The budget process is under way. The First Minister, the Deputy First Minister and the Cabinet Secretary for Finance and Local Government have mentioned the importance of housing and what we need to do to recognise that as we go forward.

Meghan Gallacher talked about the Housing (Scotland) Bill. I will touch on the points that she made. Part of the bill focuses on homelessness prevention. However, it also relates to rent controls, on which I acknowledge that we might not agree.

I see investment as being incredibly important. That is why we set up the housing investment task force, which includes investors, as part of the work on rent controls. There has been some welcome for what we have proposed on rent controls. Rent controls were included in the discussions that we held with the housing investment task force. Ms Gallacher will know that, tonight, there is a Scottish Property Federation reception at which we will speak to more people about rent controls. I continue to be happy to discuss the issue with her.

The voids issue is incredibly important, and I will touch on the point that Ben Macpherson made about the situation in Edinburgh in a second. I thank Meghan Gallacher for the points that she made. There are a number of key points to make in relation to Ben Macpherson’s comments. I have been asked how the compulsory purchase orders and compulsory sale orders are looking. An expert advisory group is working on that, and it is engaging with stakeholders. There are plans to have a consultation in 2025. I am happy to come back to Mr Macpherson and others on the timescale, but it looks like it will happen in 2025.

My understanding is that the consultation relates to compulsory purchase orders. I would appreciate it if the minister could write to me on compulsory sale orders.

Paul McLennan

I am happy to come back to Mr Macpherson on that point and give a more accurate timescale.

Mr Macpherson and a few others said that the City of Edinburgh Council has made some progress. We have been working with it on the voids issue but, at the moment, it has 7,200 empty homes. The question is what more we need to do in working with the council on that issue. Mr Choudhury mentioned that. We need to work more closely with the council. I congratulate it on bringing the voids figure down, but there needs to be more focus on bringing its empty homes figure down, too.

I will mention a number of other things. The audit that I talked about highlights the fact that local authorities would not have made such progress without the partnership’s influence and supporting role, for which I thank it again.

We are talking about a raft of measures to bring empty homes back into use. We have talked about providing an additional £40 million to support local authorities to acquire existing properties. We have legislated for a six-month grace period from the empty homes council tax payment, which supports new owners to take on and refurbish long-term empty homes. There is also the continuing work that I mentioned on the compulsory purchase scheme, as well as support for local authorities to consider the ways that they can use existing powers to unlock empty homes. We have also amended guidance to encourage local authorities to use ring-fenced council tax revenue to support empty homes services and innovative projects, and a few local authorities are considering that. Those are some of the things that we have been discussing.

I am also pleased to see the partnership’s first test and learn pilot with Homes for Good, and I commend that fantastic work, which is going from strength to strength. It is also building on its use of lottery funding to bring empty homes back into use and is now partnering with Capital Credit Union to unlock more homes. Other pilot schemes include those by Argyll and Bute health and social care partnership and by South of Scotland Community Housing.

However, we must do more and must leave no stone unturned in bringing properties back into use, which is why we are focusing on the role of privately owned empty homes in addressing the housing emergency. We continue to consider how to increase the levers to tackle that issue and have been reaching out to local authorities to see how we can best support them. I will touch on that in a moment.

I am keen to see innovative ideas coming forward, new partnerships being forged and collaborations being developed. We must all work together to identify the targeted interventions that will make the biggest difference. The partnership’s strategic empty homes framework, co-produced by local authorities, provides a solid foundation for doing so by developing strategic and integrated approaches. I want to see all local authorities developing those because a number of local authorities do not have empty homes strategies or empty homes officers. I challenge all local authorities to ask themselves whether they can do more to bring empty homes back into use. We all agree that privately owned empty homes are a wasted resource and can blight our communities.

I was at the Scottish Association of Landlords conference today, where the empty homes issue came up. There is an opportunity to see what the private rented sector can do to work with the Empty Homes Partnership. I am aware of one partnership in Perth and Kinross where that is happening, where they are looking at developing a leasing scheme. There are opportunities for other local authorities to look at that.

We must work together to step up our endeavours to bring empty properties back into use as warm, safe and secure homes. We remain committed to the work of the partnership and to tackling that issue as a priority action in our housing strategy.

I again thank Gordon MacDonald for bringing the debate to the chamber.

That concludes the debate and I close this meeting of Parliament.

Meeting closed at 17:46.