Issue - meetings

RESOLVED:

That the premium rate be increased to 75% for long term empty properties and 100% for second homes from April 2023.

Councillor Preece, having earlier declared a personal and prejudicial interest, left the room before the item was introduced.

The Chief Officer (Governance) introduced the report and explained that at the request of Cabinet, an extensive public consultation was undertaken from 8^th November 2021 to 6^th December 2021 to canvass the views of the public on the current Council Tax premium scheme, its effectiveness and impact on the local community and the use of the scheme to incentivise owners to bring properties into full use to support the supply of local housing for local residents.  The consultation also explored opinions on alterations to the premium rates and the perceived benefits and risks to adopting any alternative or amended scheme.

504 consultation responses were received from a broad range of people and the responses were summarised in the report.

The role of the premium was focussed on encouraging owners of long-term empty properties to bring them back into use with the financial burden and affordability issues that could result on those parties such as new owners or existing owners who did not have the option or the funds to take immediate steps to bring the property back into use.

The Revenues and Procurement Manager explained that previously, since April 2017 when the scheme was introduced, a premium rate of 50% had been applied for dwellings designated as being periodically occupied (usually referred to as second homes) or long-term empty properties.

He added that as part of the consultation exercise, questions were also asked of those who could be potentially impacted if the rates were increased.  In conclusion, almost two thirds of respondents felt that long-term empty properties had a negative impact on their local community.  On second homes, almost half of respondents felt they had a negative impact on their local community.  Just over half of respondents felt the premium rate should be increased to over 50%.

The report provided details of what other local authorities had set their premium rates at.  Cabinet had recommended 75% for long-term empty properties and 100% for second homes.

If the Council decided to raise the level of the premium on long-term empty properties and/or second homes, there was a possibility of increasing the Council Tax yield and to use any additional revenue generated to help meet local housing needs in line with the policy intentions of the premium scheme.

The additional revenue generated to support services would depend on the revised level of the premium rates but would typically consist of an additional £101k for every additional 10% levy above 50% on long-term empty properties and an additional £28k for every additional 10% levy on designated second homes.  Tables in the report provided illustrations of the increase for 50%, 60%, 70%, 75% and 100%.

There was an amendment to the recommendation as printed in the report with the amendment being “For Council to consider the current rate of premium of 50% on second homes and long-term empty properties and determine whether the rate  ...  view the full minutes text for item 57