Local Housing Strategy: guidance 2026

Empty homes, second homes and short-term lets

Alongside the delivery of new homes for communities, local authorities have the tools available to allow them to make the best use of existing housing.

Empty Homes

Bringing empty homes back into use is expected to form an important part of a local authority’s strategies for delivering on local and national priorities. This includes increasing housing supply, improving housing choices, reducing homelessness and meeting housing needs. Working in partnership with local authorities, the Scottish Empty Homes Partnership has produced a toolkit for developing an “Empty Homes Strategic Framework”. The benefit of working within the framework for a local authority is that it ensures its empty homes work is informed by data and targeted towards achieving local and national priorities.

Strategic Empty Homes Framework guidance and template documents is available to support local authorities looking to develop a strategic approach to empty homes work.

The LHS should set out the number of empty homes in the local authority area, the local authority’s policy on empty homes, a description of the empty homes service and a summary of the strategic aims and objectives to bring empty homes back into use. The LHS should also include a target for the number of empty homes to be brought back into use over its lifetime.

Local authorities are encouraged to highlight local and national priorities that are being achieved through their empty homes work, and how its work to bring empty homes back into use features in local strategies for achieving these priorities.

Local authorities are encouraged to include reference to a local plan (ideally this should be an Empty Homes Strategic Framework described above) which should explain how each of the aims and objectives will be achieved, and what resource is needed. A good example of a local plan that reflects the Scottish Empty Homes Partnership’s Strategic Homes Framework Guidance is included in Fife Housing Partnership’s Empty Homes Strategy 2024 to 2029.

Second Homes

Demand for second homes, especially when concentrated in particular areas, can reduce the supply of permanent homes and impact housing markets. This can make it more difficult for people, particularly younger people, or those with fewer resources, to access the homes they need.

Second homes may also operate as short-term lets and are often concentrated in similar areas. While both can provide economic benefit, demand for this type of provision can also contribute to local housing pressures including homes for key workers.

Low occupancy of second homes, even if used partially as short-term lets, can reduce the economic contribution in local communities as well as local public services. Local authorities should develop an understanding of the extent, locations, and concentrations of second homes and, where possible, their levels of occupancy.

Charging a Council Tax Premium on Second and Empty Homes

Local authorities have discretion to alter the council tax treatment of second and long-term empty homes to promote the uses that they feel would provide the best use of accommodation to meet local needs. Legislation gives councils the discretion to confer a discount of between 10% and 50% on second and empty homes and revenue raised from this, is ringfenced for affordable housing and empty homes services.

Local authorities are required to include information about revenues raised from ringfenced council tax in their annual Strategic Housing Investment Plans and correlate with information provided in their Local Financial Return, and should be aware of Local Financial Return Guidance.

Local authorities can currently charge up to 100% premium (double the full rate) on council tax for second and long-term empty homes and should be aware of council tax on second and long-term unoccupied homes guidance. The premium is intended to encourage second homeowners to use their accommodation differently, potentially in ways that bring greater benefit to local communities.

The Housing (Scotland) Act 2025 gives local authorities the power to remove the current 100% cap on council tax premiums i.e. to charger more than the double the full rate for a second home. The Council Tax (Variation for Unoccupied Dwellings) (Scotland) Amendment Regulations 2026 were approved by the Scottish Parliament on 11 March 2026. Updated guidance will set out principles for responsible use of this power.

While local authorities may spend revenue raised from the premium at their discretion, local authorities should strongly consider using this revenue to deliver affordable housing and empty homes services in support of LHS priorities and outcomes.

Strong examples of this being done in practice are the empty home grant schemes set-up by Dumfries and Galloway Council, Perth and Kinross Council and the Scottish Borders Council respectively. Since 2012, these schemes have delivered 441 homes, available for a period for affordable rent, at a cost of around £8.5 million.

Short-Term Lets

In recent years the number and types of short-term lets have grown significantly. While we recognise that short-term lets can bring benefits to communities including through associated jobs and visitor attraction, we also recognise that in some areas, high concentrations can be problematic, which is why the Scottish Government introduced legislation to regulate the use of short-term lets.

Since 1 October 2022 local authorities have been responsible for administration of the licensing scheme, ensuring short-term let properties meet necessary standards and are operated by fit and proper persons. The regulatory requirements of the sector are outlined in Scottish Government non-statutory guidance for applicants (part 1) and licensing authorities (part 2). Licensing provides local authorities detailed data about short-term lets operating in each local authority area.

Local authorities should develop an understanding of the extent, locations and concentrations of short-term lets, any local issues and consider what monitoring arrangements are in place. This should be together with guidelines on where they may consider the balance to lie and what actions have already been taken or will be taken over the period of the LHS.

To support local authorities to meet local needs, discretionary planning powers have been in place since 1 April 2021 enabling the designation of a short-term let control area where appropriate.

The designation of a short-term let control area means that from the point of designation planning permission will automatically be required for any future change of use from residential dwellinghouses (independent dwellings (with their own front doors, kitchens and bathrooms) such as a houses, flats, cottages etc.) to a short-term let used as secondary letting (short-term lets involving the letting of premises where the host does not normally live, for example a second home).

Dwellinghouses used for secondary letting before the designation of the control area, that have not confirmed their planning status, may still require planning permission. This may include renewing their short-term let licence if the planning authority deems the change a material change of use. All other premises and types of short-term let licence (home-share and home-letting) may require planning permission if it involves a material change of use, which is determined on a case by case basis.

Summary of areas expected to be included in LHS

a. a summary of the extent of empty homes in the area including a target for the number of empty homes to be brought back into use over the lifetime of the LHS.

b. a summary of the priorities relating to bringing back empty homes that the local authority wants to achieve over the period of the LHS.

c. a summary of the national and local priorities to be achieved by the local authority’s empty homes work, including how these are featured in local strategies.

d. a reference to a local plan such as an Empty Homes Strategic Framework setting out how priorities will be achieved in practice, including reference to the resources that are expected to be needed.

e. a summary by area of the extent and locations of short-term lets and second homes (including occupancy levels) including any areas of concentration.

f. a summary of any short-term let control areas that have been put in place together with any information on how the local authority is considering any need to introduce a short-term let control area.

g. a summary of the general approach the local authority is taking to the management of short term lets and second homes across its area including plans it has taken or intends to take to balance this in specific areas. This should include information or guidelines which outline the local authority’s specific approach including regular monitoring.