“Reform is long overdue,” said COSLA resources lead Cllr Katie Hagmann this autumn. Scotland has now set a date: from Monday 12 January 2026, three changes in the Housing (Scotland) Act 2025 take effect that matter for town halls and tenants alike. They remove the old default ceiling on council tax premiums for empty homes, order a formal review of joint and several liability for council tax arrears where domestic abuse is involved, and scrap the need for ministerial consent before councils transfer money into their Housing Revenue Account (HRA). The instrument was made on 18 December and laid on 22 December, according to legislation.gov.uk.

On empty homes, section 75 repeals the cap that limited how far ministers and councils could push council tax on unoccupied dwellings. It also lets ministers require councils to have regard to guidance when using any local power to vary charges. Practically, this means councils can set stronger premiums where they judge it will bring homes back into use, unless ministers later decide to prescribe a limit in regulations. The legal changes sit in black and white in section 75 of the Act and the modified section 33 of the 2003 Act.

The scale of the problem is not abstract. Scottish Government data for September 2025 recorded 44,453 properties empty for more than six months and 20,927 second homes, with the highest rates per 10,000 dwellings in island and rural authorities. Councils argue stronger local tools can nudge owners to act sooner and free up stock.

Some councils have already pushed hard within previous rules. Scottish Borders, for example, has used a 200% charge on long‑term empties and tied local reliefs to visible progress on bringing properties back into use. “We need to act urgently,” said Cllr Leagh Douglas when setting out changes earlier this year. The new law gives authorities latitude to go further if they choose.

Section 76 turns to debt and safety. It compels ministers to review how joint and several liability for council tax arrears affects people who have experienced domestic abuse, and to report to Parliament within a year of Royal Assent - by 6 November 2026 - including any action they intend to take. For survivors who have been left with debts tied to a former partner, that timetable matters.

For council finance teams, section 78 is a straight administrative fix with real‑world benefits. It amends schedule 15 of the Housing (Scotland) Act 1987 so councils no longer need ministerial consent to transfer money into the HRA, and clarifies what should be credited there. That should speed up budget moves to support repairs, new build and debt costs. Scottish Government finance guidance confirms the consent requirement that has applied up to now.

Northern readers will recognise the direction of travel. English authorities have been using council tax premiums to tackle long‑term empties and second homes for some time; Scotland’s shift removes its default ceiling and leaves it to ministers and councils to judge local limits and guidance. For border towns and shared housing markets, consistency on premiums and exemptions will be watched closely by owners and letting agents on both sides.

The politics isn’t going away. COSLA has a wider consultation with ministers on the future of council tax, including revaluation and banding changes. As that conversation runs, these January switches will bite first: higher potential empty‑home premiums, a survivor‑focused debt review on the clock, and quicker HRA transfers. Councils now have clearer levers - and decisions - in the New Year budget round.

Key dates and duties are clear from the Act itself. Empty‑home variation powers are widened by section 75; the domestic‑abuse arrears review is mandated by section 76; and HRA transfers are freed up by section 78. Councils should watch for any ministerial guidance before setting new premiums, and assess debt‑collection practices ahead of the November 2026 review deadline.