Overview

This bill amends the council tax rules in England for long-term empty properties. It significantly increases the council tax premium that local authorities can charge on empty homes, with the percentage increase varying depending on how long the property has been empty.

Description

The bill modifies Section 11B of the Local Government Finance Act 1992. This section allows local councils to increase council tax on properties that have been empty for an extended period. The key change is a substantial increase in the maximum percentage increase permitted.

Specifically:

• For the financial year 2019-2020, the maximum council tax increase on long-term empty dwellings will be 100%.
• For the financial year 2020-2021, the maximum increase will be 100% for properties empty for under 5 years and 200% for properties empty for 5 years or more.
• From 2021-2022 onwards, the maximum increase will be 100% for properties empty under 5 years, 200% for those empty 5-10 years, and 300% for properties empty for 10 years or more.

Government Spending

The bill is not expected to directly increase or decrease government spending. Instead, it aims to increase revenue for local councils through increased council tax collection from owners of long-term empty properties. The exact financial impact will depend on the number of long-term empty properties in each local authority area and the length of time they remain vacant.

Groups Affected

• Local Councils: Will receive increased council tax revenue, potentially funding local services.
• Owners of Empty Properties: Will face significantly higher council tax bills if their properties remain empty for extended periods. This could incentivize them to sell or rent out their properties.
• Potential Home Buyers/Renters: Increased availability of properties due to the higher tax could potentially lower housing costs in the long run.

Powered by nyModel