Issue - meetings

The Chairman of the Corporate Policy and Resources Committee presented the report to Council, which sought approval of the Council Tax Empty Homes Premium 2024/25, on recommendation from the Corporate Policy Resources Committee.

As such, Option 1 within the report, had been supported by the Corporate Policy and Resources Committee at their meeting in November 2023, and as such was recommended to Full Council for approval and adoption from 1 April 2024.

This being to increase both the second home charges from 90% to 100% and the long-term unoccupied and substantially unfurnished property charges from 100% premium for those empty between 5 and 10 years to 200% premium ie charge 300% council tax and for those empty over 10 years to 300% premium ie charge 400% council tax. 

Alongside an additional local exception and discount for any new owners of empty properties.

Councillor Young concluded his introduction by moving the recommendation, which was duly seconded. 

On being put to the vote it was:-

RESOLVED that the Recommendation from the Corporate Policy and Resources Committee be accepted and Option 1 of the report be approved, that being to; increase both the second home charges from 90% to 100% and the long-term unoccupied and substantially unfurnished property charges from 100% premium for those empty between 5 and 10 years to 200% premium ie charge 300% council tax and for those empty over 10 years to 300% premium ie charge 400% council tax. 

Furthermore, an additional local exception and discount for any new owners of properties, subject to a council tax premium, be approved providing evidence is provided of a firm commitment to bring the properties back into use within 12 months.

This reduction would mean they would not be liable to pay council tax on the empty property for a maximum period of 12 months but, should the property become occupied within 12 months the new resident would become liable in accordance with council tax legislation.

In the event that it is not brought back into use within this time period the appropriate premium charge will be restored and become due and payable.

These changes to be effective from 1 April 2024.

The Committee gave consideration to a report presented by the Revenues Manager, regarding options to maximise the increased premiums payable for long term empty properties. It was explained that the report outlined the current arrangements for the charging of Council Tax on unoccupied and substantially unfurnished property, together with new powers to increase this charge under the Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act 2018. Members heard details of the reasoning behind a possible change to the current charges and it was highlighted that approval was being sought to allow an increase to the premium charges of properties that have been empty for over five years. The current arrangements for the charging of Council Tax on furnished second homes were also outlined, and approval was sought to allow for a reduction of the 10% discount (ie a 90% council tax charge on furnished second homes) to no discount being awarded (ie a 100% charge).

Members were supportive of the proposals. In response to a question regarding the timescales, it was appreciated that 12 months would be reasonable for a house to be brought back into use. There was discussion regarding different approaches to rental properties where the landlord may have a break between tenants, or the definition of a second home as opposed to an empty property. It was explained that specific examples could be looked into outside of the meeting. Additionally, the majority of rental properties were let as unfurnished.

Having been moved, seconded and voted upon, it was unanimously

RESOLVED that:  

a)    the Corporate Policy and Resources Committee RECOMMEND to Full Council the adoption of Option 1 of the report to increase both the second home charges from 90% to 100% and long term unoccupied and substantially unfurnished property charges from 100% premium for those empty between 5 and 10 years to 200% premium i.e. charge 300% council tax and for those empty over 10 years to 300% premium i.e. charge 400% council tax; and

b)    the Corporate Policy and Resources Committee RECOMMEND to Full Council an additional local exception and discount for any new owners of properties subject to a council tax premium providing evidence is provided of a firm commitment to bring the properties back into use within 12 months. This reduction would mean they would not be liable to pay council tax on the empty property for a maximum period of 12 months but, should the property become occupied within 12 months the new resident would become liable in accordance with council tax legislation. In the event that it is not brought back into use within this time period the appropriate premium charge will be restored and become due and payable.

These changes to be effective from 1 April 2024.