Council tax hike on empty homes

OWNERS of long-term empty homes in Sefton will soon be hit with 300% Council Tax bills in a bid to force them to bring their properties back into use.

The scheme is due to “serious shortage of decent, affordable housing”, while properties empty for some time are a blight on the local community.

In his report to councillors, executive director of Corporate Resources and Customer Services Stephan Van Arendsen said: “As well as being a blight on the local community and attracting squatters, vandalism and antisocial behaviour, long-term empty properties are a wasted resource when 1.16 million households are on social housing waiting lists.

“Increasing the premium will allow local authorities to strengthen the incentive for owners of empty homes to bring them back into use.”

Increasing Council Tax bills will also raise more money for the authority.

It is forecast to increase Council

Tax income by £116,900 in 2023/24 (Sefton’s share £98,000).

Since April 1, 2013, councils have been able to charge a

Council Tax premium on unfurnished properties empty for more than two-years as a means of incentivising owners to bring them back into use.

The maximum allowable premium percentage was set at 50% between April 1, 2013 and March 31, 2019.

The premium cannot be applied to homes 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.

There is no statutory exemption from the premium for properties that are genuinely on the market for sale or letting.

Councils also have powers to apply discretionary discounts in cases where homes are empty due to special circumstances – for example, financial hardship, fire or flooding.

On November 1, 2018, the

Government introduced legislation that would allow local authorities to increase the empty homes premium from 50% up to 300% over a three-year period with effect from April 1, 2019.

Increasing the premium will allow local authorities to strengthen the incentive for owners of empty homes to bring them back into use.

On October 3, 2022, there were 836 long-term empty properties in Sefton.

Of these 94 had been empty for ten years of more.

This is expected to increase to 104 properties by April 1, 2023.

It is now proposed that Sefton Council further increases the premium charge from 200% to 300% for properties empty for 10 years or more in-line with the maximum allowable under the new legislation from April 1, 2023.

Stephan Van Arendsen said: “The aim of this increase would be to further incentivise owners of long-term empty properties to bring them back into use.”