NC21, tabled by Theresa Villiers MP, would make uncompleted dwellings subject to Council Tax from the day that planning permission required them to be completed.
LGA view
- To improve the build-out rates of homes with planning permission and reduce the number of stalled sites, councils should be able to charge developers or landowners full Band D council tax for every unbuilt development in these situations, as opposed to having to wait for the Valuation Office Agency (VOA) to list developments following their completion.
- LGA analysis suggests that over one million homes granted planning permission since 2010 have not yet been built. This is equivalent to three years’ worth of Government’s target number of homes to be delivered each year.
Amendment 61, tabled by Alex Norris MP, would raise the maximum level at which local authorities can set council tax on long-term empty dwellings.
LGA view
- This amendment would increase the maximum additional council tax for a long term empty home from 100 per cent to 300 per cent from the time it becomes classified as a long term empty home which by this clause will decrease from 2 years to 1 year.
- The LGA supports this amendment as it would increase the scope for council discretion - not all councils would be expected to charge the maximum.
Amendment 62, which would raise the maximum level at which local authorities can set council tax on dwellings occupied periodically
LGA view
- This would increase the maximum that can be charged on dwellings classed as second homes from 100 per cent to 300 per cent. This would be a discretionary power. The LGA supports increasing council discretionary powers on second homes.
Amendment 78, tabled by Rachel Maskell MP, would reduce length of time before the Local Authority could charge the higher rate of Council Tax on long-term empty dwellings.
LGA view
- This amendment would reduce the period before a dwelling becomes classified as a long term empty home from the one year proposed in the clause to 6 months.
- The LGA supports this amendment as it will allow councils to have powers to influence the local housing market sooner than is proposed in the clause. The power would be discretionary.
Amendment 81 tabled by Rachael Maskell MP, would reduce length of time before the Local Authority could charge the higher rate of Council Tax.
LGA view
- This would reduce the notice period to implement the new rate for council tax for second homes from one year to six months.
- The LGA has heard from councils that they would like a lower period of notice and so we support this amendment. We believe six months ought to be sufficient for second home owners to become aware of the new arrangements.
Amendment 82, tabled by Rachael Maskell MP, would provide for fines to be issued to those who fail to provide correct and accurate information regarding the occupancy of their dwellings as an anti-fraud measure.
LGA view
- This amendment would provide for regulations to be made which would allow fines to be issued to those who fail to provide correct and accurate information regarding the occupancy of their dwellings as an anti-fraud measure.
- The LGA supports giving councils more power to combat possible council tax as well as business rates avoidance. We would note that this would apply to all categories of council tax payers not just second home owners.