Councillors to consider tax premiums for owners of second homes and empty properties

Councillors at Babergh and Mid Suffolk District Councils are considering higher tax premiums for owners of second homes and long-term empty properties, following the introduction of new government rules.

There are almost 600 empty properties in Babergh and more than 680 in Mid Suffolk, which the councils are keen to bring back into use to help meet growing housing need. 

The councils already impose a council tax premium on the owners of properties that are empty and unfurnished for two years or longer, but under new legislation, the councils would be able to target empty properties after just one year from April 2024 – and impose a levy on second home owners from April 2025.

Proposals being considered by cabinet members next month would see the owners of properties left empty for a year or more paying double, with a premium of up to 100% from April 2024; properties empty for five years or more seeing their council tax bills treble with a premium of up to 200%; and owners of properties left empty for 10 years facing quadrupled bills, with a premium of up to 300%. 

Also under the proposals, the owners of 576 second homes in Babergh and 542 in Mid Suffolk would see their council tax bill double from April 2025.

The definition of a second home for council tax purposes would be a property which there is ‘no one resident’ but that is ‘substantially furnished’.  There will be exceptions, in line with Government policy, expected to include properties being actively marketed for sale or rent for a limited period, houses going through probate, caravan pitches or houseboat moorings.

Cabinet member for housing at Babergh District Council, Cllr Jessie Carter said: “It’s unacceptable that houses are standing empty without valid reason.  Each empty property is a potential home, and we must encourage owners to bring them back into use to help relieve the pressure on existing housing stock.  We want to put more homes back on the market – and ensure that those who choose to own second homes make a higher contribution to local services at a time when they are under pressure.”

Cllr Richard Winch, cabinet member for housing and property at Mid Suffolk District Council said: “Empty homes blight neighbourhoods and can attract antisocial behaviour and crime.  This would be a positive step in tackling the shortage of housing which puts pressure on prices and leaves local people priced out of the housing market.”

Initial high-level analysis suggests the proposals for empty homes premiums could generate an extra £300k in Babergh and £500k in Mid Suffolk next year, while the premiums for second home owners in 2025 could net an additional £1.1m for Babergh and £90k for Mid Suffolk.  The districts, however, only keep a fraction of the council tax they collect, with the bulk going towards the cost of services provided by Suffolk County Council and the Suffolk Police and Crime Commissioner.

The proposals, which will be discussed by both cabinets on Tuesday, January 9, are just one way that the councils are encouraging empty properties back into use.  There is also information on the councils’ websites about Houses 4 Homes – the councils’ empty homes initiative and the range of help it can offer owners to bring properties back to use, including providing loans, landlord lettings and income assistance and construction support.  

Find out more about Houses 4 Homes here: Empty homes - Babergh District Council and Empty homes - Mid Suffolk District Council.

Picture: Cllr Jessie Carter, Babergh cabinet member for housing, and Cllr Richard Winch, Mid Suffolk cabinet member for housing and property. Credit: Babergh and Mid Suffolk District Councils/Bigstock