Agenda item

The Executive Member for Financial Sustainability submitted a report that invited Overview and Scrutiny Committee to consider the proposal to increase the long term empty premium from April 2022, which was Option D in the report submitted.

The Executive Member for Financial Sustainability said that legislation had come forward in recent times that allowed local authorities to impose premiums on Council Tax for homes that had been empty for a significant period of time. He said that this matter had been reported to Overview and Scrutiny Committee previously and the Council had introduced premiums in two or three stages.

Members were advised that the initial level had been set at 50% and this had now moved to a 100% premium. The Executive Member said that legislation allowed the Council to go further than that with a 200% premium for houses that had been empty for over 5 years but less than 10 years. He said that a 300% premium was possible for houses that had been empty for over 10 years.

The Executive Member said that the aim was not to collect Council Tax but was an incentive to home owners to return properties to occupation. He said that he had previously taken a cautious approach which was why East Herts Council was behind other local authorities in implementing these premiums.

Members were advised that the proposal was now to increase the maximum premium, which was option D on page 57 of the report, which equated to a 200% premium for properties empty for between 5 and 10 years and a 300% premium for properties empty for over 10 years.

The Executive Member said that the premium stayed with the property irrespective of ownership and a dispensation was proposed for any new homeowner for a period of 12 months, as the premium could act as disincentive to a buyer not able to move into a property straight away.

Councillor Frecknall referred to paragraph 3.6 and asked whether the wording could be changed to read ‘consideration will be given to introducing discretion to remove the premium for up to one year in these circumstances’.

Councillor Snowdon commented on the importance of ensuring that this dispensation was well known and publicised. He commented with concern about the numbers of properties that had been vacant for so long.

The Executive Member and the Head of the Revenues and Benefits Shared Service responded to a question from Councillor Snowdon as to the varied reasons why some properties were left empty for so long in East Herts. Members were also advised of the publicity undertaken by the Council when a premium was due to be applied.

The Head of the Revenues and Benefits Shared Service confirmed to Councillor Bell that the Council was unable to change the timelines or values that were applied as premiums on long term empty properties.

Councillor Curtis proposed and Councillor Buckmaster seconded, a motion that the Executive be advised that option D should be taken forward in respect of changes to the Council Tax long term empty homes premiums from April 2022, on the basis that consideration will be given to introducing a discretion to remove the premium for up to one year should the owner be willing to occupy the property once renovations were completed.

After being put to the meeting and a vote taken, this motion was declared CARRIED.

RESOLVED – that the Executive be advised that Overview and Scrutiny Committee support option D being taken forward in respect of changes to the Council Tax long term empty homes premiums from April 2022, on the basis that consideration will be given to introducing a discretion to remove the premium for up to one year should the owner be willing to occupy the property once renovations were completed.