Issue - meetings

Purpose of Report

This report was to consider using new discretionary powers to introduce a council tax premium charge for furnished domestic dwellings that were occupied periodically.

Decision

That it be recommended to Full Council, the introduction of a council tax premium charge of 100% from 1^st April 2025 for dwellings where;

a)    There was no resident of the dwelling, and

b)    The dwelling was substantially furnished.

NB – details of exceptions to this premium were expected to be mandated in legislation before 1^st April 2025.

Alternative Options Considered and Rejected

None.

Reasons for the Decision

The number of holiday/second homes had grown nationally over recent years reducing housing stock for residents in areas with a high number of holiday homes used personally or for Airbnb. This also increased prices in the area, and absent owners were taking up housing stock but not contributing to the area socially or economically.

The Levelling Up and Regeneration Act received Royal Assent on 26th October 2023.

Section 77 of the Act provided a discretionary provision to the Local Authority to raise a premium of no more than 100% on second homes. ‘Second homes’ were not defined within the Council Tax legislation and the properties that were the subject of the premium were dwellings where;

a)    There was no resident of the dwelling, and

b)    The dwelling was substantially furnished.

A resident in relation to the dwelling meant an individual who had their sole or main residence in the dwelling.

As 12 months’ notice to existing owners of second homes was required, the earliest that the new charges would apply was from 1^st April 2025.

A consultation in September 2023 was held to identify properties where the premium charge would not be applied in England.

The outcome of this consultation had not been received although officers expected that new legislation would be received before 1^st April 2025.