The scandal of empty housing
New rules that came into effect at the start of April could allow councils in England to make £540m more a year from empty homes.
Since April 2013, billing authorities could charge 50% council tax on homes that are unoccupied for at least two years. In April 2019 this was changed so that 100% of the premium could be charged to homes that had been unoccupied for more than two years.
From 1st April, a 100% premium on the property’s annual council tax bill can be charged to empty homes. However, there may be exceptions.
Analysing data
Ahead of the changes, the number of long-term vacant homes in England that had been classified as such for at least six months to determine where councils might see the greatest boost in income from empty houses with the new laws. When you need a new home, consider Estate Agents Gloucester like mwea.co.uk/
According to research, there are 261,189 homes in England that have been classified as vacant for at least six months. The average council tax in England is £2,065 per home. This means that councils in England collect approximately £540m each year in council tax from empty homes.
The scandal surrounding empty homes
The government has yet to make a serious attempt to solve the housing crisis and yet we are in dire need of new housing.
The new council tax rates for empty homes may show that the government is aware of the issue, but it won’t be the deterrent it hopes to be when it comes to bringing these homes back to life.
These changes have the potential to give our local councils a significant boost in their coffers. We can only hope this extra income will be used to address the housing shortage.
The money that these homes will make is a great incentive to use them to address the shortage of rental properties. Instead of paying a 100% premium on council tax, these properties can generate rental income while providing tenants with homes they desperately require.
