Council Tax Premiums on Empty and Second Homes: A New Era for Housing in the UK
The UK government has recently come under fire for its new policy on council tax premiums on long-term empty homes and second homes. The Daily Telegraph has been at the forefront of the campaign against the measure, but the government remains resolute in its determination to tackle the housing crisis.
According to a statement from the Ministry of Housing, Communities and Local Government (MHCLG), the government is "determined to fix the housing crisis it inherited." The statement, which was published on the MHCLG blog, highlights the negative impact that excessive concentrations of second homes can have on local communities. "We recognise local leaders are best placed to understand the impacts empty properties and second homes can have on their areas," the statement reads.
The issue of second homes and empty properties has long been a contentious one in the UK. In many areas, particularly in popular tourist destinations, the proliferation of second homes has driven up housing prices and rents, making it difficult for local families to find affordable accommodation. The MHCLG statement acknowledges this problem, noting that "excessive concentrations of second homes in some areas of the country can impact the availability and affordability of homes to buy and rent." This, in turn, can lead to problems for families, public services, and the local economy.
In an effort to address this issue, the government has introduced a new policy allowing local councils to add up to 100% extra on the council tax bills of empty or second homes. This move has been welcomed by many local authorities, who see it as a way to discourage homeowners from leaving their properties empty or using them as second homes. However, the MHCLG statement also acknowledges that there may be instances where it would not be appropriate for the premium to apply, and has introduced exceptions in limited circumstances. For example, homeowners who are actively marketing their properties for sale or let, or who are undergoing major repairs, may be eligible for a 12-month exception.
The MHCLG has published guidance on the application and administration of the council tax premiums and the exceptions, which can be found on the GOV.UK website. The guidance provides detailed information on how the premiums will work and how councils will be expected to implement them. According to the MHCLG, "it is for those councils to decide whether to implement this and at what level." This approach has been welcomed by many local authorities, who see it as a way to give them more flexibility and autonomy in addressing the housing crisis in their areas.
The government’s commitment to tackling the housing crisis is not limited to the council tax premium policy. The MHCLG statement highlights the government’s broader plans to fix the "broken housing system" it inherited. This includes a commitment to deliver 1.5m homes and inject £2 billion to help deliver the biggest boost in social and affordable housebuilding in a generation. The statement also notes that councils have a role to play in ensuring that properties they own are inhabited, and that they should make use of their available social housing.
As the government continues to grapple with the complex issue of housing, it is clear that the council tax premium policy is just one part of a broader strategy to address the crisis. While there may be controversy surrounding the policy, the MHCLG remains committed to its implementation, and is confident that it will help to make a positive impact on the availability and affordability of housing in the UK.
The guidance on the implementation of the council tax premiums on long-term empty homes and second homes can be found here: Guidance on the implementation of the council tax premiums on long-term empty homes and second homes – GOV.UK.
This article is based on information from the Ministry of Housing, Communities and Local Government (MHCLG) blog, which can be found at: Coverage of council tax premiums.
