4th November 2026
Highland Council is stepping up its efforts to bring long-term empty properties back into residential use, but early results from its £1 million Empty Homes Challenge Fund suggest that turning the policy into actual homes may prove more difficult than anticipated.
A report going before the Council's Housing and Property Committee on 4 November provides an update on the strategy introduced in November 2025.
The figures illustrate the scale of the opportunity. As of October 2026, 2,496 properties across Highland were subject to the long-term empty homes Council Tax premium. More than 100 additional properties were receiving Council Tax discretion because temporary circumstances justified exemption from the premium.
In a region experiencing significant housing shortages, these properties represent a potentially important source of additional accommodation without necessarily having to build new houses.
The Council's Empty Homes team currently has 272 active cases involving complicated legal or financial circumstances. Since the strategy was introduced, nine long-term empty homes cases have been resolved.
These cases are not always straightforward. Properties can remain empty following the death of an owner, because ownership is disputed, because relatives cannot agree what to do, or because the cost of necessary repairs is beyond the means of the owner.
In one example included in the report, an owner wanted to sell an inherited property but felt overwhelmed by the work needed to clear it and prepare it for sale. The Council helped arrange assistance with clearing the property, provided details of estate agents and explained the financial incentives available for renovation. The property has now been sold and is expected to return to residential use.
Another case involved a property left empty following the owner's death. It had become a focus for anti-social behaviour, with young people gaining entry. The Council helped trace relatives, worked with Police Scotland to address security concerns and assisted with arrangements to sell the property.
A £1 million fund with a slow start
One of the main elements of the strategy is the Empty Homes Challenge Fund, launched in June 2026.
It offers grants of up to £30,000 in rural areas and £25,000 in urban areas to help owners overcome financial barriers to bringing properties back into use.
Properties must have been empty for at least 12 months. Assistance is available for owners intending to occupy the property themselves or make it available through affordable letting arrangements.
However, the early figures are less encouraging. The Council has received 34 applications, but only one grant has so far been committed or awarded. The applications are currently being assessed.
Rather than simply allowing the scheme to continue unchanged, officers are recommending amendments designed to make it easier for owners to qualify.
These include allowing applications where the property has been long-term empty regardless of how long the applicant has owned it, and extending the time allowed to complete refurbishment work from 12 weeks to six months.
The longer completion period recognises the particular difficulties of arranging building work in remote and rural communities, where contractors and materials may not always be readily available.
The Council is also considering extending the fund to certain properties it owns outside its main Housing Revenue Account, including former janitors' houses that have become too expensive to refurbish through existing budgets.
Why empty homes matter to rural communities
The report makes an important distinction between the impact of empty homes in larger towns and smaller rural settlements.
Inverness accounts for approximately 21% of the long-term empty properties, but the Council recognises that even a small number of empty homes can have a much greater effect on the sustainability of a smaller community.
In Caithness and Sutherland, bringing an otherwise unused house back into occupation could help a young family remain locally, provide accommodation for someone taking up employment or give a local person the opportunity to return to the area.
There are also wider economic benefits. Reusing existing properties can support local builders and tradespeople while making better use of roads, schools, water supplies and other infrastructure already in place.
The Council is also developing a database to connect owners wishing to sell empty properties with prospective purchasers looking for housing opportunities in Highland.
The longer-term ambition is to make better use of existing housing stock rather than relying entirely on new construction.
A question of results
The strategy has made progress in establishing a dedicated team, developing relationships with estate agents and property professionals, and helping owners deal with complicated circumstances.
However, the real measure of success will not be the number of applications received or the number of meetings held. It will be the number of previously empty properties that actually become occupied homes.
With almost 2,500 properties attracting the long-term empty homes premium, the potential is considerable. The challenge now is to turn that potential into something tangible for communities struggling to find affordable accommodation.
The £1 million fund provides a useful starting point, but its slow initial take-up suggests that further work is needed to understand what is preventing owners from participating.
For Highland's smaller communities, even a relatively modest number of additional homes could make a meaningful difference. The opportunity is there. The question is how quickly the Council can turn empty houses into homes.
Watch the meeting live 9.30am 4 November 2026 at
https://highland.public-i.tv/core/portal/webcast_interactive/1090535