Issue - meetings

The Leader’s Portfolio

To consider report FIN/648 of the Head of Corporate Finance, which was referred to the meeting of the Overview and Scrutiny Commission on 11 March 2024.

RESOLVED

That Full Council be recommended to:

a)         approve a Premium of 100% for dwellings which are unoccupied and substantially unfurnished (Empty Homes Premium) after 1 year, instead of two years from 1 April 2025;

b)         approve the application of a premium for dwellings Occupied Periodically (Second Homes) charged at 100% (twice the current Council Tax Amount) from 1 April 2025;

c)         delegate authority to the Head of Corporate Finance (Section 151 Officer) to implement this Council’s policy on premiums in line with statute and any subsequent guidance issued by the Secretary of State following the outcome of the consultation (Appendix A of report FIN/648) which recommends exceptions to the second homes premium in certain circumstances.

Reasons for the Recommendations

The Council declared a housing emergency at the Full Council meeting on 21 February 2024.  The aim of the introducing a council tax premium on long term empty homes and second homes is to reduce the number of empty homes within the Borough and to encourage the use of premises as main residences by local residents rather than second homes.

The Leader of the Council presented report FIN/648 of the Head of Corporate Finance. The Levelling-up and Regeneration Act came into force on 26 October 2023. The Act allows Council's to charge higher Council Tax on properties that are defined as long term empty homes and properties that are only occupied occasionally (second homes). The additional charge is intended to encourage owners to bring properties back into use and could boost the supply of properties in the borough.

Councillor Ayling presented the Overview and Scrutiny Commission’s comments on the report to the Cabinet following consideration of the matter at its meeting on

11 March 2024, which included:

·              Noting it was proposed to introduce a 100% premium on empty homes after 1 year instead of 2 years and to also introduce a second homes premium of 100% both with effect from 1 April 2025.

·              The additional charge was intended to encourage owners to bring properties back into use and could boost the supply of properties in the borough.

·              Clarification was sought and obtained regarding the penalties that would exist for any potentially fraudulent claims. It was recognised that the Council had a variety of information available to assist in fraud prevention.

Councillor Crow was invited to speak on the item, and in doing made a number of comments that included he was of the view that the proposed approach was the right way forward for dealing with the empty properties.

Councillors Irvine, C Mullins, Noyce, S Mullins and Rana, all spoke in support of the recommendation as part of the discussion on the report.

RESOLVED

That Full Council be recommended to:

a)         approve a Premium of 100% for dwellings which are unoccupied and substantially unfurnished (Empty Homes Premium) after 1 year, instead of two years from 1 April 2025;

b)         approve the application of a premium for dwellings Occupied Periodically (Second Homes) charged at 100% (twice the current Council Tax Amount) from 1 April 2025;

c)         delegate authority to the Head of Corporate Finance (Section 151 Officer) to implement this Council’s policy on premiums in line with statute and any subsequent guidance issued by the Secretary of State following the outcome of the consultation (Appendix A of report FIN/648) which recommends exceptions to the second homes premium in certain circumstances.

Reasons for the Recommendations

The Council declared a housing emergency at the Full Council meeting on 21 February 2024.  The aim of introducing a council tax premium on long term empty homes and second homes is to reduce the number of empty homes within the Borough and to encourage the use of premises as main residences by local residents rather than second homes.

To consider report FIN/648 of the Head of Corporate Finance.

The Commission considered report FIN/648 of the Head of Corporate Finance.  The Levelling-up and Regeneration Act came into force on 26 October 2023. The Act allowed Councils to charge higher Council Tax on properties that were defined as long term empty homes and properties that are only occupied occasionally (second homes). 

During the discussion with the Deputy Leader of the Council and the Head of Corporate Finance, the following comments were made:

·         It was noted that the report recommended the introduction of Council Tax premiums on long term empty properties and on second homes.  The wider aim was to reduce the number of empty homes and to encourage the use of properties as main residences rather than as second homes in the borough.   It was therefore proposed to introduce a 100% premium on empty homes after 1 year instead of 2 years and to also introduce a second homes premium of 100% both with effect from 1 April 2025. 

·         Acknowledgement that the additional charge was intended to encourage owners to bring properties back into use and could boost the supply of properties in the borough.

·         It was commented that given the housing emergency declaration in February 2024, together with the Council’s financial pressures the report was welcomed in an attempt to meet both objectives.

·         Clarification was sought and obtained regarding the penalties that would exist for any potentially fraudulent claims. It was recognised that the Council had a variety of information available to assist in fraud prevention and undertook visits to confirm the information held against properties, together with credit searches and further involvement from the Council’s Fraud Investigation Team where required.

RESOLVED

That the Commission noted the report and requested that the views expressed during the debate, were fed back to the Cabinet through the Commission’s Comment sheet