Issue - meetings
Council Tax Premiums – Second Homes and Long Term Empty Properties
Meeting: 09/10/2024 - Executive (Item 242)
242 Council Tax Premiums – Second Homes and Long Term Empty Properties 
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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 the Executive resolves to recommend to Council to:
1. Agree from 01 April 2025 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;
2. Agree from 1 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;
3. Note that where premiums are to be applied, the Council is mindful of the outcome of the government consultation which recommends exceptions in certain circumstances outlined within the report may be amended, and as such guidance may change;
4. Agree that any amendments to the guidance which may change the criteria for Premiums be delegated to the Chief Finance Officer in consultation with the Executive Member for Finance.
Additional documents:
Minutes:
Councillor Alaric Smith, Executive Member for Finance, introduced the report, which sought Executive 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 report set out, for consideration, the introduction of a 100% Council Tax premium in respect of Second Home properties commencing on 1 April 2025 as well as reducing the period a premium could be applied to a Long-Term Empty property from two years to one year from 1 April 2025.
The report also supported the Local Plan and its ambition to provide 15,950 homes over its period and was an incentive for those owners of unoccupied or second homes to consider their properties to be brought back into use and made available for either rent or sale.
In debate, Councillor Hugo Ashton suggested that there were 250 holiday lets in the West of the District that had been subject to business rates; those exempt from business rates needed to be examined to ensure that proper payment for services they received was recouped in some way. The Environmental, Welfare, Revenue Services Business Manager explained that this was an issue for the Valuation Office Agency to deal with and there was movement between business rates and council tax properties.
Councillor Alaric Smith proposed that the Executive agree the recommendations as listed on the original report. This was seconded by Councillor Geoff Saul, was put to a vote, and was unanimously agreed by the Executive.
The Executive Resolved to:
1. Agree from 01 April 2025 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.
2. Agree from 1 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;
3. Note that where premiums are to be applied, the Council is mindful of the outcome of the government consultation which recommends exceptions in certain circumstances outlined within the report may be amended, and as such guidance may change;
4. Agree that any amendments to the guidance which may change the criteria for Premiums be delegated to the Chief Finance Officer in consultation with the Executive Member for Finance.