To consider the above report

Members considered increasing the Long Term Empty Property Premium from 50% to 100% in line with the new legislation.

Councillor S Rayner explained that the Local Government Finance Act of 2012 allowed councils to charge up to 150% of the relevant Council Tax on a property where it had been empty and unfurnished for 2 years or more. The borough chose to implement this change from April 2013. On 1 November 2018 the Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Act received Royal Assent to increase this further. The Act also allowed further increases in 2020/21. Implementation from 2019 would realise an additional £190,000 of income per annum for the council.

Councillor Saunders commented that up and down the country there was a substantial amount of homes not being utilised. In the borough the proportion was relatively modest but nonetheless existed in the hundreds. It was important that the council played its part in keeping the market liquid. A clear financial incentive to keep properties empty for a minimum period was needed, therefore it would be consistent with national legislation and other local authorities to set an appropriate level. This was a sensible modest fiscal lever the council should apply.

Councillor Hill stated his support for the paper as homes should be occupied. However he felt the report focussed on the financial element rather than the need to bring houses back into use. Other local authorities nearby were reducing their Objectively Assessed Need (OAN). He hoped the Leader would take note and reduce the number in the borough, therefore taking up less Green Belt.

Councillor Hollingsworth asked if the council had thought about making the costs punitive to encourage more homes to be brought back into use.

Councillor Werner stated his support for the proposals. When the Liberal Democrats had been in power they had done a lot of work on empty homes. He had read in the local paper that there were 1300 empty homes in the borough, which was more than Slough. He asked why the charge was not being increased to 150%.

Councillor Beer commented that he fully supported the proposals. However he questioned the definition of ‘empty and unfurnished’ properties as there were probably a large number of properties left furnished after the occupant died. Additionally some properties in the borough were furnished and only occupied for a couple of weeks each year, for example over Royal Ascot.

Councillor Lenton commented that he did not feel the report included a proper analysis including what proportion of properties were affected and in which areas. He also questioned the definition of unfurnished. He felt the report should be withdrawn.

Councillor Brimacombe agreed the principle was correct but detail was missing; he therefore supported councillor Lenton’s proposal for the report to be withdrawn.

Councillor Dudley commented that it had been a good debate. The ratio of median house prices to earnings was 12.5 times in the borough. The Ministry of Housing, Communities and Local Government had been clear that reducing the OAN would be a strategy of folly and stupidity. The Prime Minister was completely supportive of the emerging Local Plan and development on the golf course site.

Councillor S Rayner confirmed that 332 properties had been empty in the borough for two years or more. It was important to keep a balance therefore a 100% fee was proposed but increases would be considered in the future.

It was proposed by Councillor S Rayner, seconded by Councillor Dudley, and:

RESOLVED: That Council notes the report and:

i)       Approves increasing the Long Term Empty Property Premium from 50% to 100% in line with the new legislation.

(43 Councillors voted for the motion: Councillor M. Airey, N. Airey, Alexander, Bateson, Beer, Bicknell, Cannon, Carroll, Clark, Coppinger, Da Costa, Diment, Dudley, D. Evans, L. Evans, Gilmore, Hill, Hilton, Hollingsworth, Hunt, Ilyas, Jones, Kellaway, Lion, Love, Luxton, Majeed, McWilliams, Mills, Muir, Quick, S. Rayner, Saunders, Sharma, Sharp, Sharpe, Smith, Story, Targowska, Werner, D. Wilson, E. Wilson and Yong. 2 Councillors abstained: Councillors Brimacombe and Lenton)

Councillor C Rayner left the room for the duration of the debate and vote on the item.