Agenda item

RECOMMENDED: That Council:

1)    Charge the long-term empty property premium after 12 months from 1 April 2024,

2)    Charge a 100% premium for second homes falling into Class B from 1 April 2025,

3)    Adopt the Council Tax Discounts Resolution as at Section 7 of Appendix C,

4)    Work with other Norfolk authorities and Norfolk County Council to ensure the maximum possible amount of the additional second homes income is returned to those boroughs most affected by second home ownership and,

5)    Delegate authority to the Revenues and Benefits Manager, in consultation with the s151 Officer and Council Leader, to agree the technical guidelines for any exceptions to the premiums imposed by central government.

Reason for Decision

To decide whether the provisions within sections 79 and 80 of the Levelling Up and Regeneration Act 2023 regarding additional premiums should be implemented.

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The Revenues and Benefits Manager presented a report which explained that Section 79 of the Levelling Up and Regeneration Act 2023 allowed billing authorities to apply the existing 100% premium for long term empty properties after a property had been empty for one year rather than the current time of two years.  This change could be made from 1 April 2024. More details were set out in section 2 of the report.

The report also explained that Section 80 of the Levelling Up and Regeneration Act 2023 allowed billing authorities to charge an additional premium of 100% on a property which was substantially furnished and where there was no resident (i.e., second homes, referred to in the Act as ‘dwellings occupied periodically’).  The Act set out that the Council must give at least 12 months’ notice of this change so charges in relation to this part of the legislation could be implemented from 1 April 2025.

Under sanding order 34 Councillor Dark drew attention to what was said at the Corporate Performance Panel in that it was an opportunity to raise funds for authorities at all levels, however he cautioned any comments made as reported on by the EDP regarding second home owners.  He commented that the paper gave the opportunity to look at the options available. 

Councillor Beales confirmed he felt it was right to give it some thought, and reservations were not surprising as some second home owners may decide not to remain as such, properties may come on the market for use as full time homes.  He commented that it was right to make the most of the council tax for the residents of the borough.

Councillor Morley responded that it would be dealt with sensitively, but the additional money would be of benefit for the services in the area.

Councillor Rust drew attention to the areas where residents were not able to access services such as childcare and schools because the number of families in areas of high second home ownership didn’t sustain them.

Councillor Squire asked what procedures were in place to check on those that would then claim it was their permanent home.  It was noted that checks were carried out to ascertain such things as GPs, Dentists, schools etc. 

Councillor Moriarty commented that often the second home owners didn’t have large incomes, and did contribute to their local communities, he also drew attention to the fact that property prices were often out of the range of first time buyers.

Councillor Ring commented on the alleged damage to the visitor economy, and drew attention to any increase would be in the region of 1 weeks rent on the property when rented out.  He commented that those who chose not t rent out their properties were generally those who could afford not to do so. 

Councillor Parish drew attention to the press comments and confirmed the scheme was a “no brainer” for the area as it was essential to find additional income wherever possible.  He reminded Members that the majority of the additional funding would go to the County Council and the Police. 

RECOMMENDED: That Council:

1)     Charge the long-term empty property premium after 12 months from 1 April 2024,

2)     Charge a 100% premium for second homes falling into Class B from 1 April 2025,

3)     Adopt the Council Tax Discounts Resolution as at Section 7 of Appendix C,

4)     Work with other Norfolk authorities and Norfolk County Council to ensure the maximum possible amount of the additional second homes income is returned to those boroughs most affected by second home ownership and,

5)     Delegate authority to the Revenues and Benefits Manager, in consultation with the s151 Officer and Council Leader, to agree the technical guidelines for any exceptions to the premiums imposed by central government.

Reason for Decision

To decide whether the provisions within sections 79 and 80 of the Levelling Up and Regeneration Act 2023 regarding additional premiums should be implemented.