Issue - meetings
Council Tax Second Home Premiums
Meeting: 20/03/2024 - Council (Item 37)
37 Council Tax Second Home Premiums 
PDF 81 KB
Purpose
To consider the proposals to introduce a Council Tax Premium on second homes and apply a premium to long term empty properties after one year.
Recommendations
That Full Council resolves to:
- Agree from 01 April 2024, to levy the maximum level of premium for Empty Homes as set out in the Levelling Up and Regeneration Act 2023.
a) Premium of 100% for dwellings which are unoccupied and substantially unfurnished (Empty Homes Premium) after 1 year up to 5 years of becoming empty;
b) Premium of 200% for dwellings which are unoccupied and substantially unfurnished (Empty Homes Premium) between 5 years and 10 years;
c) Premium of 300% for dwellings which are unoccupied and substantially unfurnished (Empty Homes Premium) for 10 years or more.
- Agree in principle from 01 April 2025 to the implementation of a premium (Second Homes Premium) of 100% for dwellings that are no one’s sole or main residence and which are substantially furnished as set out in paragraph 4.7 of the report.
- Agree to issue the mandatory notice of 12 months to all owners of second homes that a premium will commence from 1 April 2025; and,
- Note that where premiums are to be applied, the Council is mindful of the current consultation by government which recommends exceptions in certain circumstances outlined within this report. Subject to the outcome of that consultation, a further report may be presented to Cabinet and Council prior to the implementation of the Council's policy on premiums taking into account statute, the Council's requirements and any guidance given by the Secretary of State.
Additional documents:
- Annex A- Council Tax information letter 2/2024, item 37
PDF 303 KB
- Webcast for Council Tax Second Home Premiums
Minutes:
The purpose of the report was to consider the proposals to introduce a Council Tax Premium on second homes and apply a premium to long term empty properties after one year.
The Deputy Leader and Cabinet Member for Finance, Councillor Evemy, introduced the recommendations and made the following points:
- The legislation to give councils the necessary powers had been anticipated for some time alongside the guidance for these measures.
- However, the timescale for implementation of 12 months was required to provide the formal notification for the second homes premiums. This required a Council decision before 1 April 2024 so that it could come into effect on 1 April 2025.
- The new premium for empty properties would increase the premium from 50% to 100%.
- The need for affordable housing was important and the new premiums would support this.
- Homes being maintained as second homes within the District would have a new premium of 100% Council Tax from April 2025.
- It was noted at paragraph 4.7 of the report that the purpose of the recommendations was to discourage residential properties being taken out of use. The Council would not seek to apply the levy to permanent holiday accommodation. This was noted as accounting for 20% of the homes outlined in the report.
There were two questions raised in respect of paragraph 4.5 of the report if the period by which a home remained empty ‘reset’ with transfer of ownership and how the provisions on couples living separately would be applied. The Chair on the advice of the Deputy Leader then invited the Business Manager for Environmental, Revenues and Welfare to answer the questions. It was noted in response that a property with a premium having already been applied, would continue on the same timeframe as under the previous owner. It was noted in consideration for officers to clamp down on avoidance of Council Tax premiums and there were checks that could be used to enforce the policy.
There was a question about the financial implications as part of the report and the £3.3 million of extra revenue of which £246,000 would be retained by the Council. It was noted that the purpose of the empty homes premiums was to disincentivise the retention of empty homes and it was asked if the income generated from this premium was therefore likely to be lower. The Deputy Leader noted that the figures in paragraph 5.3 would be on the second homes premium and the estimate was not on the empty homes due to the point raised. The Deputy Chief Executive confirmed that the projections were based on the second homes premium only. On the empty homes premium, it was noted by the Deputy Chief Executive that the change in the legislation was to reduce the timeline for charges on empty homes from 2-5 years to 1-5 years and the existing policy of 2-5 years was the basis for the Council Tax estimates set out in the Budget passed at February Council. The collection fund ... view the full minutes text for item 37
Meeting: 07/03/2024 - Cabinet (Item 250)
250 Council Tax Premium - Second Homes And Long-Term Empty Properties PDF 221 KB
Purpose
To consider the proposals to introduce a Council Tax Premium on second homes and apply a premium to long term empty properties after one year.
Recommendations
That Cabinet resolves to recommend to Full Council to:
- Agree from 01 April 2024 to levy the maximum level of premium for Empty Homes as set out in the Levelling Up and Regeneration Act 2023:
i) Premium of 100% for dwellings which are unoccupied and substantially unfurnished (Empty Homes Premium) after 1 year up to 5 years of becoming empty;
ii) Premium of 200% for dwellings which are unoccupied and substantially unfurnished (Empty Homes Premium) between 5 years and 10 years;
iii) Premium of 300% for dwellings which are unoccupied and substantially unfurnished (Empty Homes Premium) for 10 years or more.
- Agree in principle from 01 April 2025 to the implementation of a premium (Second Homes Premium) of 100% for dwellings that are no one’s sole or main residence and which are substantially furnished
- Agree to issue the mandatory notice of 12 months to all owners of second homes that a premium will commence from 1 April 2025; and,
- Note that where premiums are to be applied, the Council is mindful of the current consultation by government which recommends exceptions in certain circumstances outlined within this report. Subject to the outcome of that consultation, a further report may be presented to Cabinet and Council prior to the implementation of the Council's policy on premiums taking into account statute, the Council's requirements and any guidance given by the Secretary of State.
Additional documents:
Decision:
The purpose of the report was to consider the proposals to introduce a Council Tax Premium on second homes and apply a premium to long term empty properties after one year.
Councillor Evemy introduced the report and outlined the recommendations to Full Council.
Cabinet made various comments around the proposals to support affordable housing and the application of the premium.
Councillor Evemy proposed the recommendations and Councillor Layton seconded.
That Cabinet AGREED to recommend to Full Council to:
1. Agree from 01 April 2024 to levy the maximum level of premium for Empty Homes as set out in the Levelling Up and Regeneration Act 2023:
i) Premium of 100% for dwellings which are unoccupied and substantially
unfurnished (Empty Homes Premium) after 1 year up to 5 years of becoming
empty;
ii) Premium of 200% for dwellings which are unoccupied and substantially
unfurnished (Empty Homes Premium) between 5 years and 10 years;
iii) Premium of 300% for dwellings which are unoccupied and substantially
unfurnished (Empty Homes Premium) for 10 years or more.
Page 3
2. Agree in principle from 01 April 2025 to the implementation of a premium (Second Homes Premium) of 100% for dwellings that are no one’s sole or main residence and which are substantially furnished subject to the conditions at paragraph 3.7
3. Agree to issue the mandatory notice of 12 months to all owners of second homes that a premium will commence from 1 April 2025; and,
4. Note that where premiums are to be applied, the Council is mindful of the current consultation by government which recommends exceptions in certain circumstances outlined within this report. Subject to the outcome of that consultation, a further report may be presented to Cabinet and Council prior to the implementation of the Council's policy on premiums taking into account statute, the Council's requirements and any guidance given by the Secretary of State.
Voting Record
5 For, 0 Against, 0 Abstention, 3 Absent/Did not vote
Minutes:
The purpose of the report was to consider the proposals to introduce a Council Tax Premium on second homes and apply a premium to long term empty properties after one year.
Councillor Evemy as Deputy Leader and Cabinet Member for Finance introduced the report and made the following points:
- The UK Government had passed the Levelling Up and Regeneration Act 2023 which provided provisions to local authorities regarding premiums for empty properties for 1 year and second homes within the District.
- 1 April 2025 would be the start date for Second Homes premium as 12 months’ notice is required as opposed to 1 April 2024 for the Empty Homes Premium proposal.
- There were 1500 second homes within the District which would be charged a 100% Council Tax Charge except for those classed as Holiday Lets which were subject to Business Rates and met the relevant criteria.
- Subject to the guidance, the proposal for Cabinet was to not include purpose-built holiday homes such as those within the Cotswold Waterpark as these properties did not detract from housing supply within the District.
- The issue of second homes within the towns and villages had an impact on community life and services within the area.
- The additional Council Tax revenue subject to the exemptions being made would support affordable housing provision.
- The Leader and the Chief Executive would be asked to discuss with the other major preceptors how this additional income could provide benefits within the District.
Cabinet commented on the impact on the economy and communities that second home ownership could have (other than purpose-built holiday lets).
Cabinet asked about the purpose-built second home figure outlined and if this was a reflection of the figure. The Deputy Leader noted that around 365 homes within the 1500 figure were classed as purpose built second homes. The Deputy Chief Executive noted that the numbers provided were those within the Council Tax system but there were others that were classed under the Business Rates system. It was highlighted that there would be further work done to ensure the data was accurate before the charges came into effect.
Councillor Evemy proposed the recommendations and Councillor Layton seconded.
That Cabinet AGREED to recommend to Full Council to:
- Agree from 01 April 2024 to levy the maximum level of premium for Empty Homes as set out in the Levelling Up and Regeneration Act 2023:
i) Premium of 100% for dwellings which are unoccupied and substantially
unfurnished (Empty Homes Premium) after 1 year up to 5 years of becoming
empty;
ii) Premium of 200% for dwellings which are unoccupied and substantially
unfurnished (Empty Homes Premium) between 5 years and 10 years;
iii) Premium of 300% for dwellings which are unoccupied and substantially
unfurnished (Empty Homes Premium) for 10 years or more.
Page 3
- Agree in principle from 01 April 2025 to the implementation of a premium (Second Homes Premium) of 100% for dwellings that are no one’s sole or main residence and which are substantially furnished subject to the ... view the full minutes text for item 250