Agenda item

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 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)  agree that an update of the number 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.

At 7:12pm, Councillor L Davenport-Ray took her seat at the meeting.