Ministers target second home tax discount

1st November 2011

The government will consult on new "flexibility" for local authorities to remove council tax relief on second homes and empty properties.

An estimated 300,000 homes around in England have been empty for longer than six months, while many thousands of others are used as second homes.

Second homes currently receive a 10 to 50 per cent discount. There are a range of discounts of up to 100 per cent for empty homes.

The department for communities and local government said:

"These reforms could allow councils to make up to a £20 reduction in the bill for a typical Band D property in England.

"Getting empty homes back into use will increase housing supply and tackle properties that can attract squatters and vandalism and blight communities."

The National Landlords Association said that given the severe housing shortage, it is "imperative that empty homes are brought back into use, but it should not be at the expense of improvements which would otherwise be possible within the private-rented sector".

David Salusbury, NLA chairman, said:

"Relief from council tax during these periods enable landlords to finance repairs and refurbish, they also should be given the opportunity to implement new 'green' initiatives' during this time.

"Landlords are always keen to ensure that their properties are tenanted, but they must not penalised during periods that allow them to maintain, repair and improve their properties."

DCLG said are no plans to change the rules on council tax relief currently available for homes left empty because a person has moved into a hospital or care home, or has died, or has moved to provide care to another.

Councils will be encouraged to use their existing powers to apply discretionary discounts in cases where homes are empty due to other circumstances such as hardship, fire or flooding.

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