We're taking on rich land hoarders
Scottish Green MSP Ross Greer is calling on MSPs to tackle the blight of derelict land in Scotland’s towns and cities by backing his proposals to tax those hoarding undeveloped sites.
The proposals, which will be tabled as an amendment to the Land Reform Bill, would crack down on the scandal of greedy individuals and companies buying up land that could be used for homes or businesses, but allowing it to remain derelict for years or even decades.
This practice, known as ‘landbanking’, has often been used by supermarkets and other businesses who want to block their competitors from setting up nearby.
Historically, when land or a building became unused, the owner would get a reduction on their business rates, often for years and often 100%. This gave site owners no incentive to bring their land or properties back into productive use - instead choosing to sit on it while paying nothing and waiting for the land value to go up, or simply blocking potential competitors from buying and developing the site.
Greer’s proposals would give councils the power to apply an extra charge on derelict sites instead, raising money for local services and pushing the owners to either use or sell the land.
This would build on previous efforts by the Scottish Greens to bring more land and property into productive use and tackle the housing crisis, including powers to increase council tax on empty and holiday homes. That reform has been a major success, raising millions of pounds for local services and resulting in the number of holiday homes reducing by nearly 2,500 in a single year, meaning that more properties were being sold to those who would actually live in them.
Greer’s derelict land charge is based on recommendations from the Scottish Government-commissioned Barclay Review into non-domestic tax rates.
Ross said:
“All over Scotland there are greedy companies and wealthy individuals sitting on derelict land and treating it as a personal cash cow. I’m sure we can all think of examples blighting our own communities, especially our town centres.
“These sites could be used for the benefit of local people, for example as housing, rather than feathering the nests of people who are already very wealthy.
“Far too many town and city centres are being held to ransom by land owners who are more interested in maximising their own profits than creating thriving high streets and local environments. It’s time to bring abandoned and neglected land and properties back into community use. That would be good for local businesses and for communities.
“I hope that MSPs will back my proposals, which would be a crucial step towards improving our town centres, freeing up land for affordable housing, supporting community regeneration and taking power back from the super-rich who are hoarding land and wealth.”