Measures to equip councils with powers to bring thousands of
long-term empty homes back into use will be debated in Parliament
today (23 April 2018).
The new legislation will allow councils to charge double the rate
of Council Tax on homes left empty for years. Local authorities
can currently levy a 50% premium.
Whilst the number of homes empty for 6 months or longer remains
substantially lower than when records began in 2004, councils
will be handed powers to levy additional charges on homes
standing empty for 2 years or more.
The move is one of a range of measures introduced by the
government to fix the country’s broken housing market, and
councils will be able to use funds from the premium to keep
Council Tax levels down for working families.
Through an ambitious package of long-term reform and targeted
investment, the government is ensuring communities have the homes
they need.
Local Government Minister, , said:
While we should celebrate the number of long-term empty homes
dropping by a third since 2010, there are still 200,000 vacant
properties across the country.
This bill hands councils further tools to bring much-needed
homes back into use and provide thousands of families with a
place to call home.
There are currently just over 200,000 long-term empty dwellings
in England, compared to 300,000 in 2010.
The number has reduced since 2013, when councils were given
powers to charge a 50% premium on Council Tax bills. The vast
majority of councils currently apply this premium on long-term
empty homes.
The Rating (Property in Common
Occupation) and Council Tax (Empty Dwellings) Bill was
introduced on 28 March 2018.
The number of homes empty for 6 months or longer remains
substantially lower than when records began in 2004, when the
figure was 318,642. As of October 2017, the number had fallen to
205,293. The lowest number recorded was in October 2016, when
there were 200,145. Councils already have powers and incentives
to tackle empty homes.
Through the New Homes Bonus scheme introduced in 2011, councils
earn the same financial reward for bringing an empty home back
into use as for building a new one. And since 2013, councils have
been able to charge a 50% premium on the Council Tax bills of
owners of homes empty for 2 years or more. 291 out of 326
councils applied an empty homes premium in 2017 to 2018.
The government has published guidance that makes clear that the
premium should not be used to penalise owners of homes that are
genuinely on the market for rent or sale.
There are exemptions in place for homes that are empty due to the
occupant living in armed forces accommodation for job-related
purposes, or to annexes being used as part of a main property.
Also, the Council Tax system provides statutory exemptions for
properties left empty for a specific purpose – for example, when
a person goes into care. Councils also have powers to apply
discounts in cases where homes are empty due to special
circumstances – for example, hardship, fire or flooding.
There is a Council Tax exemption for homes which are empty due to
probate.
