Owners of empty homes warned as council considers tax changes

There are currently 2,085 properties that have been empty for more than six months and a further 314 second homes.

All of them receive a discount of 25 per cent against their council tax, which costs the council £660,000 a year.

The authority is now considering whether to reduce or remove the discount on some empty homes. For second homes, the discount cannot be reduced to zero as the minimum is ten per cent.

The discount on long-term empty properties can be reduced by any percentage – including zero – from their current level of 25 per cent.

Members of the council’s cabinet will discuss a report at a meeting today.

The report says that the number of empty homes in Calderdale has been going down, with a drop of 11 per cent between September last year and July.

Nationally there is evidence that a reduction in council tax discounts on empty homes has led to a reduction in empty properties.

The council report says some classes of exemptions and discounts would not be affected by the proposals.

These include:

Up to six months exemption if a property is unfurnished and unoccupied.

Fifty per cent discount where owners are required to live elsewhere, such as soldiers/armed forces and publicans.

Up to six months exemption if property is empty following death of occupier and the home forms part of the estate.

Up to 12 months exemption for a house undergoing repair.

Up to six months exemption for a new property.

Full exemption for people in care, in prison (unless for non-payment of Council Tax) and properties owned by charities.

The report concludes that reducing discounts could encourage owners to either rent or sell as it will cost them more if they remain unoccupied.

It will also generate income for the authority.

One disadvantages is that the reduction in discounts could cause hardship to owners of empty properties and second homes.

It will also mean more time is spent by officers collecting the increased level of tax and making adjustments to IT systems.

The extra money could be used to assist with the collection of additional Council Tax, empty property enforcement work, or other council services.

The council could stand to make £573,000 if the discount for empty properties is reduced to zero.

If the discount for second homes is reduced to 10 per cent the money raised will be just under £55,000.

There are 3,479 long-term empty homes across Kirklees, while 17,000 people are on the council house waiting list.

Liberal Democrat councillors are calling for action to bring the properties back into use using the Government’s New Homes Bonus.

Lib Dem leader Councillor Kath Pinnock said: “There are many different types of long term empty homes across the borough.

“Whatever the reason for them being empty, the fact is we have nearly 17,000 people on the waiting list, which will no doubt increase in the future, as will the general demand for housing. The £2m New Homes Bonus is a real opportunity for the council to take positive action to tackle some of these issues and get some of these empty properties back into use.”

The Government money can be used to set up a loan scheme to help property owners carry out renovations before letting out the property to people on the housing list.

It could also be used to create a social letting agency run by the council that would manage and let empty properties for their owners.

Coun Pinnock is in talks with senior officers about introducing some of the schemes.