Issue - meetings

At its meeting on 31 January 2018 the Executive Committee considered the Empty Homes Premium and RECOMMENDED TO COUNCIL that, from 1 April 2018, a Council Tax Empty Premium of 50% be implemented in respect of properties that have been unoccupied and substantially unfurnished for more than two years; and that the detailed governance arrangements be implemented in consultation with the Lead Member.

82.8           At its meeting on 31 January 2018, the Executive Committee considered a report which set out the introduction of a proposed Council Tax - Empty Homes Premium. The Executive Committee had recommended to Council that a premium of 50% be implemented from 1 April 2018 in respect of properties that had been unoccupied and substantially unfurnished for more than two years; and that the detailed governance arrangements be implemented in consultation with the Lead Member.

82.9           The report which was considered by the Executive Committee had been circulated with the Agenda for the current meeting at Pages No. 55-58.

82.10         The recommendation from the Executive Committee was proposed by the Chair of the Committee and seconded by the Lead Member for Finance and Asset Management.

82.11         During the discussion which ensued, a Member questioned whether someone would have to pay the premium if they were purchasing a property that had been empty for two years and which would need to remain empty for a further period before they could move in. In response, the Deputy Chief Executive confirmed there would be some discretion open to the Council and that type of example was something that could be decided in consultation with the Lead Member as recommended by the Executive Committee. There followed a discussion about what was meant by the phrase ‘substantially unfurnished’. Members felt this was a rather ‘woolly’ term and, in response, the Deputy Chief Executive indicated that this was something upon which Officers would have to use their discretion as there was no definition for what was meant by a property being substantially unfurnished. However, the Council used fully trained assessors who would take into account all of the facts and evidence before making a decision as to whether or not the premium should be applied. In view of the fact that this appeared to be a subjective issue, a Member questioned whether there was a right of appeal. In response, the Deputy Chief Executive indicated that, as with any new policy, it would be subject to procedures and he would undertake to check what the appeals procedure might be. It was intended that a mailshot would be sent to any properties which would be affected by the premium to ensure the owners/landlords etc. were aware of the change.

82.12         Accordingly, it was

                  RESOLVED          That, from 1 April 2018, a Council Tax Empty Homes Premium                              of 50% be implemented in respect of properties that have been                             unoccupied and substantially unfurnished for more than two                                 years; and that the detailed governance arrangements be                                       implemented in consultation with the Lead Member.

To make a recommendation to Council that a Council Tax Empty Homes Premium of 50% is implemented from 1 April 2018 in respect of properties that have been unoccupied and substantially unfurnished for more than two years.

That it be RECOMMENDED TO COUNCIL that, from 1 April 2018, a Council Tax Empty Premium of 50% be implemented in respect of properties that have been unoccupied and substantially unfurnished for more than two years; and that the detailed governance arrangements be implemented in consultation with the Lead Member.

89.1           The report of the Head of Corporate Services, circulated at Pages No. 24-27, recommended the introduction of a Council Tax Empty Homes premium of 50% to be effective from 1 April 2018. Members were asked to consider the introduction of the premium, which would apply to homes that had been unoccupied and substantially unfurnished for more than two years, and make a recommendation to Council thereon.

89.2           The Committee was advised that the report brought forward a proposal to introduce a 50% premium in respect of empty homes Council Tax from 1 April 2018. The legislation to enable this had first been introduced in 2013 along with discretion for the Council to implement discounts etc. If the premium was introduced, it would apply to properties that had been unoccupied, or substantially unfurnished, for two years or more. Prior to implementing the legislation, the government had consulted on the circumstances in which the 50% premium would not be applicable; those three circumstances were: a dwelling which was the sole, or main, residence of a member of the armed forces who was absent from the property as a result of such service; an annexe deemed unoccupied because it was being treated by the occupier of the main dwelling as part of that main dwelling; and a dwelling which was genuinely on the market for sale or letting. Subsequently, the government had legislated for the first two circumstances but had decided not to do so in the case of a dwelling which was genuinely for sale or letting. However, it was still believed that dwellings in such circumstances should not be subject to a premium and the government had issued guidance to assist authorities in their decision-making. The benefits to the Council of implementing this scheme were more in regard to bringing empty homes back into use rather than for financial gain. There were currently 88 properties which would fall within the criteria for empty homes premium and, if they were charged accordingly, this would bring in additional income of £66,255.59 of which the Council would keep approximately 7% which equated to £4,637.89. The reminder would go to the County Council and the Police Crime Commissioner in the same way that Council Tax income was usually distributed; however, it would also be expected that the Council’s New Homes Bonus position would be improved through long term empty properties being brought back into use; this was based on an approximate figure of £1,591 per property.

89.3           In response to a query regarding ownership of a property, Members were advised that it was intended that the premium would be applied when a property had been empty for two years irrespective of the length of current ownership. It would therefore be possible that a person could buy a property that had already been empty for two years and then be liable for the premium immediately; however, occupancy of a long term empty property for more than six weeks would ‘reset’ the clock and there were  ...  view the full minutes text for item 89