Empty home owners could have Leeds council tax bills trebled under new proposals

Now city officials are considering using new legislation that will allow them to treble the council tax paid by the owners of some persistently empty properties.

The new powers, available from April this year, will allow councils to charge three times the usual rate where a home has been left empty and unfurnished for between five and 10 years.

The YEP can now confirm that councillors will be asked to approve the use of these powers as part of 2020/21 council tax billing proposals.

Coun Barry Anderson, who chairs the council's environment, housing and communities scrutiny board, said he supported the idea of the new legislation being used.

"I also feel that there is a need to update the current policy which ran out last year," he said. "Whatever policy revisions do come forward, it is important that evidence is obtained from as wide a range of people as possible to ensure that the policy is fit for purpose and meets the needs of both the home owners and of those residents who are looking for a property.

"The council has been successful in a number of schemes throughout the city in bringing properties back into use so they need to revisit the pros and cons on benefits that have arisen as a result of these initiatives."

Initiatives include the council providing loans of up to £30,000 to help owners make homes habitable again, access to free advice for home owners, and a directory of investors looking to buy empty properties in the city.

The latest available government data shows there were 10,362 empty homes in Leeds in October 2018, including 2,788 that had been vacant for six months or more.

Both figures have reduced significantly since this annual snapshot was first taken in 2004. There were 16,164 empty homes in October that year, including 6,445 vacant for six months or more.

But the total empty homes has risen since the record lows of 2016 when there were 9,706 empty properties, including 2,574.

Coun Debra Coupar, executive member for communities, said "enormous progress" had been made in tackling the issue, with a reduction of around 3,500 private empty homes over the past few years.

“To place the number of empty homes in perspective, there are over 330,000 homes in Leeds, so long term empty homes represent around one per cent of the total housing stock.," she said.

"Given the regular turnover that we see in the city’s housing stock, we would not expect to see the overall number of empty homes reduce significantly from where they currently are now."

For its part, the council has been working to reduce the number of its own properties that are vacant.

The government data shows they have fallen from 1,560 in 2004 to 509 in 2018, although the lowest level was 411 in 2016.

But Coun Coupar said there had been an increase in private sector stock not in use over the past year.

She said this was not thought to be a long-term trend, but the council was not complacent about the efforts needing to keep the number of empty homes low.

The latest available information, published via Data Mill North, shows there were 684 empty homes owned by limited companies in April 2019.

Of the 684 empty homes, there were 150 which had been empty for more than two years. These are all expected to pay a 100 per cent premium on their council tax, which doubles their final bill.

A council spokesman said the number of empty homes had been reduced by 800 homes in the first year it was able to charge the premium, with levels maintained since then.

"It is hoped the new charges will help to reduce the number of empty homes in the city helping to increase the supply of homes," he added.

The 684 empty homes included two properties that had been empty for 8,800 days - the equivalent of more than 24 years. One of those homes was in Headingley and the other in Carlton, which is part of the Rothwell ward.

They might escape the proposed 200 per cent premium on their council tax bill since the legislation targets properties empty for between five and 10 years.

But they could face an even higher bill from April 2021 if Leeds seeks to make use of the next wave of legislation.

It would allow the authority to charge a 300 per cent premium on top of the normal council tax rate, effectively quadrupling the bill for the owner of any home empty for 10 years or more.

Coun Anderson said it was important to understand why these homes were empty but also where empty properties were, where housing demand was coming from, and whether that could be matched up.

He said: "One initial step the council might want to consider is to bring a report to the Executive Board setting out the current position, looking at where the empty homes policy needs to be reviewed and setting out a timetable for delivering the revised policy."