Bailiffs Called In To At Least 280,000 Homes Over Council Tax Debt

Local authorities in England referred at least 280,000 households to bailiffs over council tax debt in the first year of the pandemic, and asked for more than 115,000 people to have their benefits deducted to clear their arrears. Councils adopted widely differing approaches to council tax arrears as the economy froze and unemployment rose during 2020-21, with some councils suspending all debt-recovery action while others continued to pursue thousands of households. Councils passed 281,380 households to bailiffs in 2020-21 – with at least 93,031 of cases relating to council tax arrears that built up during the course of that year, rather than previous years. Read more on the Observer website.

https://www.theguardian.com/money/2021/aug/08/bailiffs-called-in-to-at-least-280000-homes-over-council-tax-debt

Council Tax: Empty Property – Parliamentary Written Answer

Caroline Nokes: To ask the Secretary of State for Housing, Communities and Local Government, whether local authorities may extend the three month discount on council tax for empty properties. 

Mr Simon Clarke: The power to offer a council tax discount on empty properties is at the discretion of local authorities who can determine both the level of the discount and the length of time that it should be applied

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2020-05-11/45154

Second Homes – Parliamentary Written Answer

Anthony Mangnall: To ask the Secretary of State for Housing, Communities and Local Government, what assessment he has made of the number of second homes that are (a) liable to pay council tax and (b) liable to pay business rates.

Mr Simon Clarke: Second homes are liable for council tax rather than business rates. 253,000 properties were treated as second homes for council tax purposes as at September 2019. 56,000 properties that are available commercially as self-catering holiday accommodation are subject to business rates.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2020-04-24/39749

Second Homes – Parliamentary Written Answer

Duncan Baker: To ask the Secretary of State for Housing, Communities and Local Government, what plans he has to bring forward legislative proposals to limit second home ownership.

Christopher Pincher: The Government has introduced a series of measures to help mitigate second home ownership. In 2013 the Government removed the requirement for local authorities to offer a discount on second homes enabling them to charge the full rate of council tax. Additionally, in April 2016, the Government introduced a 3 per cent higher rate of Stamp Duty Land Tax (SDLT) for those purchasing additional properties.

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-question/Commons/2020-03-03/24445

Council Tax On Empty Houses Set To Rocket To Three Times Usual Fee

The owners of empty houses and flats and properties in Swindon could be facing a big bill come April. Swindon Borough Council’s cabinet has approved the idea that council tax on such properties which have lain empty for five years or more could be charged three times the rate of the same property if it was occupied. The plan is to encourage people to bring empty houses and flats back into use, and will be incorporated into next year’s council budget. Read more on the Swindon Advertiser website.

https://www.swindonadvertiser.co.uk/news/18099598.council-tax-empty-houses-swindon-set-rocket-three-times-usual-fee/

Households In Labour Areas Picking Up Tab For Others' Unpaid Council Tax

Homeowners are having to pay higher council tax in Labour-controlled areas because up to one in ten bills is allowed to go unpaid, new figures show. In the worst-hit areas Labour councils have unpaid council tax bills of up to £100 million, the equivalent of £439 for every household. It means that people who do pay their bills are being forced to subsidise those who do not, as councils have to increase council tax across the board to make up for the shortfall. The 10 local authorities with the worst council tax collection rates in England are all Labour-run, as are the 10 councils with the biggest cumulative council tax arrears. Read more on the Daily Telegraph website.

https://www.telegraph.co.uk/politics/2019/04/22/council-tax-bills-could-439-cheaper-town-halls-collected-fees/

Council Tax Debts In England Soar 40% In Six Years

Council tax debts in England have soared by nearly 40% in six years, Guardian research has found, with charities warning these arrears now rival credit card debts as their biggest concern. Amid warnings that “heavy-handed” collection tactics are putting severe pressure on those already in financial difficulty, households face a fourth consecutive year of above-inflation council tax rises as local authorities attempt to recoup money cut from their budgets by central government. The annual band D bill will rise by an average of £75.60. Read more on the Guardian website.

https://www.theguardian.com/money/2019/apr/12/council-tax-debts-soar-in-six-years-charities-warning-arrears

Council Tax Hike Planned For Solihull's Empty Homes

Some empty homes in Solihull could see a council tax increase of up to 300 per cent as part of a push to get vacant houses back into use. Plans are being drawn up to impose new premiums on those properties which have been unoccupied for the longest periods of time. With increasing demand for housing across Solihull, the council hopes that a hike in bills might persuade owners to act. Figures from last month state that there are 1,212 empty homes in the borough. Read more on the Birmingham Live website.

https://www.birminghammail.co.uk/news/midlands-news/council-tax-hike-planned-solihulls-15676853

400% Council Tax Hike Plan For Empty Home Owners

Empty home owners in Gloucester could face a 400% council tax rise as part of plans to help homeless families move out of temporary accommodation. Gloucester City Council says there are more than 150 families in temporary accommodation and 353 empty homes. Under the plans, homes empty for two years or more will see a 150% rise from April, while those empty for more than 10 years will see a 400% hike in 2021. The authority said it could raise £225,000 a year for services. Read more on the BBC website.

https://www.bbc.co.uk/news/uk-england-gloucestershire-46753012

Call To Scrap Council Tax And Stamp Duty For Annual Property Tax

A radical plan to scrap council tax and stamp duty in favour of a new levy based on the value of people’s homes is being urged by the IPPR think tank – as part of a five-point programme to overhaul taxation of wealth. Under the plan, all homeowners would pay annual property taxes proportionate to the present-day market price of their homes. The report recommends the new property tax set at 0.5% to raise at least as much as current council taxes. A higher rate would be needed in order to replace the revenue currently raised from stamp duty land tax, paid by anyone buying a home. Read more on 24housing.

https://www.24housing.co.uk/news/call-to-scrap-council-tax-and-stamp-duty-for-annual-property-tax/

Labour Plans £560m A Year Levy On Holiday Homes

Labour has announced new plans to introduce a levy on second properties used as holiday homes, in a bid to tackle homelessness. Under the plans, the holiday homes would face an average annual bill of around £3,200, meaning the estimated 174,000 properties used for this purpose in England could generate up to £560m a year. The new levy would be based on a property’s council tax band and represent a doubling of its council tax bill. Labour stressed that the new levy would only be applicable to second homes primarily used as holiday houses, and would not include homes that are rented or used for employment, or static caravans. Read more on the propertyreporter website.

http://www.propertyreporter.co.uk/property/labour-plans-560m-a-year-levy-on-holiday-homes.html    

Councils Get Stronger Powers Over Empty Homes

Councils across England will have powers to charge even greater council tax premiums on homes left empty for many years following an amendment to a Government Bill. The amendment was made during the Third Reading of the Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill in the House of Lords. Under the amendment, decisions on whether to charge a premium, and the exact rates to be charged will remain a matter for councils, taking local circumstances into account. It is anticipated that councils will be able to charge 100% premiums from April 2019, 200% premiums from April 2020 and 300% premiums from 2021. Read more on 24housing.

https://www.24housing.co.uk/news/councils-get-stronger-powers-over-empty-homes/

Councils Call For Additional Powers To Tax Empty Homes

The Local Government Association (LGA) has called for the House of Lords to support an amendment to the Rating and Council Tax Bill. The bill was launched by the government in March this year after initially being announced in last November’s budget. In the original bill, it states that for long-term empty properties the premium councils can charge can go from 50% to a maximum of 100%. However, the amendment would allow councils to charge beyond the 100% premium on an escalating scale from 2020. This would mean councils could charge a 200% premium for homes empty for five years or more or 300% for homes empty for 10 years or more. Read more on Inside Housing.

https://webcache.googleusercontent.com/search?q=cache:3_36AKldA54J:https://www.insidehousing.co.uk/news/news/councils-call-for-additional-powers-to-tax-empty-homes-57244+&cd=2&hl=en&ct=clnk&gl=uk&safe=vss

Tax Cuts On Empty Homes Costing Councils Millions

The owners of nearly 100,000 empty or second homes in England are paying reduced or no council tax on their properties despite the cash crisis facing local authorities. Almost 80,000 empty houses have been enjoying council tax deductions, according to official government figures, with nearly half of the properties having no council tax applied to them at all. Owners of more than 19,000 second homes were also given money off their council tax bills. Some of the councils awarding the highest discounts are now moving to end the giveaway. It comes after ministers announced new powers for local authorities to charge double the rate of council tax on homes left empty for two years. Read more on the Observer website.

https://www.theguardian.com/society/2018/mar/31/council-tax-cuts-empty-homes-costing-millions

Council Tax Rise Targets Second Homes

Owners of second homes in the Yorkshire Dales could see council tax on their properties rise by five times the current level. A proposal approved by the National Park Authority is designed "to help attract and retain families to live and work in the area". Their figures show there are 1,500 second homes there - more than 10% of the housing stock. Any increase in council taxes above 100% would require government approval. Read more on the BBC website.

Autumn Budget Update - Housing

·         100% council tax premium on empty properties.

·         Stamp duty abolished for first-time buyers for homes worth up to £300,000

·         £28m in three new housing pilot schemes – in the West Midlands, Manchester and Liverpool – to halve rough-sleeping by 2022 and eliminate it by 2027.

·         £44bn of capital funding to help build 300,000 homes annually by mid-2020s.

·         New money for home builders fund.

·         £630m ‘small sites fund’.

·         £8bn of financial guarantees to support private housebuilding.

·         £2.7bn housing infrastructure fund.

·         £1.1bn for new urban regeneration.

·         £34m to train construction workers.

·         A review to be chaired by Oliver Letwin to look at ways to speed up planning permission.

·         Five new garden towns.

·         One million new homes on the Cambridge-Milton Keynes-Oxford corridor by 2050.

Read more on the Guardian website.

Universal Credit Expansion Is 'A Disaster Waiting To Happen'

Citizens Advice is warning that the expansion of Universal Credit is 'a disaster waiting to happen', as new findings show it is pushing people further into debt. Citizens Advice analysed over 50,000 cases where it has helped people with their debt problems and found that for those on Universal Credit:

·         79% have priority debts such a rent or council tax, putting them at greater risk of eviction, visits from bailiffs, being cut off from energy supplies and even prison - compared to (69%) on legacy benefits such as Jobseekers Allowance or Housing Benefit. 

·         2 in 5 (41%) have no money available to pay creditors as their monthly spend on essential living costs is more than their income.

·         Typically people on Universal Credit only have around £3 a month left to pay creditors.

Read more on the CAB website.

Ministers To Reverse Universal Credit Policy For Homeless Families

Ministers are to bow to pressure to exclude homeless families from universal credit after it emerged that design flaws in the troubled new benefits system have triggered an explosion in rent arrears, costing council tax payers millions of pounds. Local authorities in London say rent collection levels for homeless tenants placed in emergency accommodation have collapsed following the introduction of the universal credit digital service last year. Croydon council says it faces an unpaid £2.5m rent bill this year as a result, and has warned ministers this scale of losses is unsustainable. It said the costs were leaving councils potentially unable to meet their statutory duties under homelessness law. Read more on the Guardian website.

Government Urged To Reverse New Homes Bonus Reductions

The Local Government Association (LGA) wants New Homes Bonus (NHB) reductions reversed to ease the squeeze on cash-strapped councils facing further savings. The LGA is calling on government to reverse unexpected reductions in NHB payments to councils in 2017/18 and find “genuinely new” money to properly fund social care. A provisional Local Government Finance Settlement, published in December, failed to provide any additional new government funding for councils in 2017/18. Instead, the government brought forward already announced council tax raising powers for social care authorities and redistributed £241m in NHB payments through a new Adult Social Care Services Support Grant. Read more on 24housing.

Latest Data On Empty Homes

The latest data from charity Empty Homes, suggests there has been a 1.1% decrease in empty homes in the last year. The official data is derived as a side product from council tax returns, rather than from a targeted exercise aimed specifically at understanding all empty property and the charity urges people to understand what is and is not included. The numbers do not include, for example, properties that are in such a state of dereliction that they are not counted as dwellings for council tax purposes. In other cases, local authorities will simply not know a property is empty, for example if the outgoing occupants did not tell them. Read more on the Empty Homes website.