A report before this weeks Solihull Cabinet meting concerned tax premiums we set for longer term empty properties. The thrust behind this is is motivate owners to either make their homes suitable for habitation so they can be rented ointment or sold, therefore helping meet the demand for hoisting in the borough.
In 2013 legislation was introduced which allowed billing authorities to charge a 50% council tax premium for unfurnished homes that had remained unoccupied for two years or longer. The Council resolved to implement this premium in full with effect from 1 April 2013. Subsequent changes to legislation increased the charge from 50% to 100% from 1 April 2019 and introduced further premiums based on the length of time a property remained unoccupied are detailed in the table below:
The 100% long term empty premium currently generates approximately £150,000 per annum in council tax revenue in Solihull. There are 650 properties that are empty and unfurnished that do not yet attract the premium as they have been empty for less than 2 years. It is expected that the majority of these properties will become occupied between now and 1 April 2024. Therefore, it is difficult to determine the exact number of additional properties that will have the premium applied.
Reducing the empty period to one year could generate approximately £121k in additional revenue for 2024/25. This is a conservative estimate until figures are confirmed nearer to the 1 April 2024 implementation date. It is expected that this amount will decrease over time as the policy intention takes effect and owners bring properties back into use.
This will help support the Council’s objective to increase housing supply and encourage owners of empty properties to bring them back in to use
The full report before Cabinet on Thursday can be read here: https://eservices.solihull.gov.uk/mgInternet/documents/s107377/Council%20Tax%20Premiums%20for%20Empty%20Properties%20and%20Second%20Homes.pdf
Ken Hawkins 