Democracy in Crawley

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Issue - meetings

Council Tax Empty Properties Premiums

Meeting: 25/09/2019 - Cabinet (Item 5)

5 Council Tax Empty Property Premiums pdf icon PDF 96 KB

The Leader’s Portfolio

 

To consider report FIN/478 of the Head of Corporate Finance, which was referred to the meeting of the Overview and Scrutiny Commission held on 23 September 2019.

Minutes:

The Cabinet considered report FIN/478 of the Head of Corporate Finance. The Leader briefed the Cabinet on the report, which was based on national legislative changes that now give billing authorities the ability to amend Council Tax premiums for properties that have been empty for a minimum of two years. It was explained that the recommendations are set in order to incentivise the occupation of empty homes – increasing the number of properties available to residents. The Cabinet was requested to approve, and submit to Full Council, the recommendations applying to both the 2020 and 2021 financial years, as well as to allow waives of the current premium on properties that are being ‘actively marketed’ (considered on a case-by-case basis).

 

The Overview and Scrutiny Commission’s comments on the report were discussed with the Cabinet following consideration of the matter at its meeting on 23 September 2019. Cabinet members discussed the number of properties currently empty, and sought clarification over those exempt from the premium which members heard was determined by national legislation.

 

 

RESOLVED

 

That the Cabinet recommends that Full Council:

 

a)    Approves the Council Tax Empty Homes Premium from 1st April 2020 of 100% in respect of properties empty for between 2 and 5 years, and 200% in respect of properties empty for 5 years or more.

 

b)    Approves the Council Tax Empty Homes Premium from 1st April 2021 of 100% in respect of properties empty for between 2 and 5 years, 200% in respect of properties empty for between 5 and 10 years, and 300% in respect of properties empty for 10 years or more.

 

c)    Resolves to remove the premium on a property when it is ‘actively marketed’ if it meets the premium criteria rules.

 

Reasons for the Recommendation

 

To incentivise the occupation of empty properties and maximise income in order to ensure that empty homes are encouraged to be occupied and income to the Council is maximised whilst giving consideration to Council Tax payers.

 

 


Meeting: 23/09/2019 - Overview and Scrutiny Commission (Item 4)

4 Council Tax Empty Property Premiums pdf icon PDF 96 KB

To consider report FIN/478 of the Head of Corporate Finance.

Minutes:

The Commission considered report FIN/478 with the Leader of the Council and the Head of Corporate Finance.  Since April 2013, billing authorities have been able to charge an additional premium of 50% on properties which have been unoccupied and substantially unfurnished for more than two years. This has meant that the council tax charged is 150% of the normal charge for that property. Legislation has changed to allow councils to increase the premium above the previous 50% limit, with the amount of the premium increasing the longer the property is left empty. The report sought agreement to increase empty homes premiums to ensure that empty homes are encouraged to be occupied.  The intention behind the legislation for the charging of premiums is to encourage owners of long term empty properties to bring them back into use in order to increase the supply of housing

 

During the discussion, the following points were expressed:

·        Clarification was sought on the exemptions provided from the premium, particularly for those in care.

·        It was felt there was a moral duty to implement, particularly given the current housing situation, as it may incentivise owners to bring the properties back into use. 

·        Recognition that there were currently inspections that took place in various forms to establish empty establishments.

·        Acknowledgement that any application to reduce or waive a premium was governed by legislation. 

·        Explanation was sought as to responses to other authorities that had increased premiums beyond 50%.

·        Acknowledgement that there were no costs to the implementation of the scheme.

·        Support for the report and for publicity following Full Council in October.

 

RESOLVED

That the Commission agreed to support the recommendations to the Cabinet.