Issue - meetings

To receive a report proposing the implementation of additional Council Tax Premiums in relation to unoccupied properties across the District.

Executive Councillor: S Ferguson.

 The Cabinet has recommended that Council:

a)  amends the existing empty homes premium to charge the additional 100% Council Tax premium after one year of the conditions being met, rather than the current two years, with effect from 1^st April 2026;

b)  approves the introduction of a second homes premium of 100% with effect from 1st April 2026;

c)  provides delegated authority for the Section 151 Officer, in conjunction with the Executive Councillor for Resident Services and Corporate Performance, to adopt a policy setting out exceptions to the premiums in line with any regulations or guidance issued by Central Government, and to make subsequent updates to the policy as and when required; and

d)  agrees that an update of the numbers of the properties falling under the scheme be reported back to the democratic cycle once the new policy has been in place for 12 months.

See Minute No. 24/45 – Members’ Interests.

At 7:03pm, Councillor L Davenport-Ray vacated the room for this item.

Consideration was given to a report by the Revenues and Benefits Manager (a copy of which is appended in the Minute Book) proposing the implementation of additional Council Tax Premiums in relation to unoccupied properties across the District.

In introducing the report, the Executive Councillor for Resident Services and Corporate Performance reported upon the 2021 Census figures which had identified that there were 1.5 million vacant dwellings in England which was not that dissimilar to the figures reported for those on the social housing waiting list nationally. The proposals being considered by the Cabinet would help to take steps towards resolving the housing crisis by bringing more properties into use for social housing. It was acknowledged that reduced supply and a shortage of housing was driving up rents and housing prices making it difficult for residents to afford their own homes. In noting that around 600-700 homes remained vacant in Huntingdonshire, it was reported that the Council Tax Premium would be introduced for empty and unfurnished homes after 1 year, rather than the current 2 year period and a premium would also be introduced for those with second homes. Both premiums would be charged at 100% coming into effect from April 2026.

Attention was then drawn to the views of the Overview and Scrutiny Panel (Environment, Communities and Partnerships) where discussion had taken place at their meeting on 7th November 2024 on exemptions for the empty homes premium. The Panel had been offered the opportunity to form a Working Group to discuss the matter further following the release of legislation from the Government which was welcomed by the Cabinet. Executive Members also expressed support for the Panel’s proposed additional recommendation requesting an update of the numbers of the properties falling under the scheme to be reported back to the democratic cycle once the new policy had been in place for 12 months.

Matters that were discussed included the timing of the proposals and whether the premium for empty homes should be introduced in April 2025 as opposed to April 2026 and the importance of clear communication and messaging out to residents to help distinguish between the two premiums. In respect of the former, the view was held that it would be better to wait for the legislation around exemptions to be released whilst also enabling residents longer to prepare for the changes.

Whereupon, it was

RESOLVED

  that Council be recommended to:

a)  amend the existing empty homes premium to charge the additional 100% Council Tax premium after one year of the conditions being met, rather than the current two years, with effect from 1^st April 2026;

b)  approve the introduction of a second homes premium of 100% with effect from 1st April 2026;

c)  provide delegated authority for the Section 151 Officer, in conjunction with the Executive Councillor for Resident Services and Corporate Performance, to adopt a policy setting out  ...  view the full minutes text for item 46

The Panel is invited to comment on the Council Tax Premiums Report.

Executive Councillor: S Ferguson

By means of a report by the Revenues and Benefits Manager (a copy of which was appended in the Minute Book), the Council Tax Premiums report was presented to the Panel.

It was confirmed to the Panel that the proposal was to charge 100% Council Tax Premium after one year of the conditions being met. It was also confirmed that the date that the property became empty would be the date used once the proposed changes come into effect.

The Panel heard that whilst there was no legal definition in what constituted an unfurnished home, the broad view was that the home should be habitable with some furniture and white goods present. Following a further question from Councillor Hassall, it was clarified that the Council proposed to charge the maximum amounts permitted by the legislation.

The Panel heard that the Council were able to exercise discretion in genuine cases of houses being on the market and specifically where a property had been through probate for a period longer than exception provided. Further detail on this would be worked into future policy development. It was also confirmed that notice would be placed into local newspapers to confirm the changes along with 12 months notice of these coming into effect.

It was advised to the Panel that properties which were vacant due to the occupant/s moving to a care home would remain exempt provided that they remained unoccupied.

 It was confirmed to the Panel, that the empty period after which a premium could be charged, as set out within the recommendations, was set in legislation.

It was advised that guidance was in place to ascertain what classified as a property being actively marketed for sale, but that further work would be developed on this subject during future policy development.

It was proposed by Councillor Mokbul to add an additional recommendation to the Cabinet report, this recommendation was seconded by Councillor Lowe and the Panel voted unanimously in favour of forwarding the proposed recommendation to the Cabinet;

4) to agree that an update of the numbers of the properties falling under the scheme be reported back to the democratic cycle once the new policy has been in place for 12 months.

Following the discussion, it was

RESOLVED

that Cabinet be encouraged to consider the comments from Overview and Scrutiny when making a decision upon the recommendations within the report; and;

that Cabinet be encouraged to add the proposed recommendation 4 to the report; 

4) to agree that an update of the numbers of the properties falling under the scheme be reported back to the democratic cycle once the new policy has been in place for 12 months.