Agenda item
Council Tax Premium - Second Homes And Long-Term Empty Properties
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.
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 conditions at paragraph 3.7
- 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.
Voting Record
5 For, 0 Against, 0 Abstention, 3 Absent/Did not vote
|
For |
Against |
Abstention |
Absent/Did not vote |
|
Claire Bloomer |
|
|
Joe Harris |
|
Juliet Layton |
|
|
Lisa Spivey |
|
Mike Evemy |
|
|
Paul Hodgkinson |
|
Mike McKeown |
|
|
|
|
Tony Dale |
|
|
|
Supporting documents:
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