New Forest District Council to charge owners of second homes and empty properties extra council tax

OWNERS of second homes in the New Forest could be charged double the council tax to help free up more housing for local people.

The district council’s ruling cabinet approved the plan which will generate an income of almost £400,000 annually by doubling the charge in some cases.

There are 1,608 properties currently registered as being unoccupied and furnished, and therefore potentially second homes, said an NFDC report.

The extra money could be levied if the government’s Levelling Up and Regeneration Bill is voted through by MPs.

It proposes to give local authorities discretion to address the impact high levels of second-home ownership can have.

If approved, the legislation will allow for a new discretionary council tax premium on second homes of up to 100%.

The same can be charged for properties which have been empty for longer than one year – rather than the current two years.

A cabinet report said: “This will encourage more empty homes into productive use, while enabling councils to raise and retain additional revenues to support local services and keep council tax down for residents.”

Cllr Jeremy Heron, NFDC’s Conservative cabinet member for finance, told the A&T the change was “all about bringing properties back into use as quickly as possible” and had been recommended by a cross-party working group.

He said: “Particularly at this time of year we must all be acutely aware of people who will be spending their Christmas in temporary accommodation or, worse, on the street.

“Equally our second-homes policy has the effect that those who are fortunate enough to be in a position to own more than one house can help in their support of the community whilst also encouraging those that do have houses within our district to live in them and through that support the vibrancy of our towns, villages and the local economy.”

Once legislation is agreed, NFDC plans to apply a 100% council tax premium for eligible properties – both empty and second homes, likely to come into effect from 1st April 2024.

For second homes, this would generate income for the council of around £360,000.

The cabinet report added there were a further 203 properties that have been empty across the district for between one and two years.

These would provide an annual income of £12,000 to the council.

The council also plans to make changes to the discount it offers to owners of uninhabitable properties which are unoccupied, unfurnished and in need of major repair works or structural alterations.

NFDC currently offers a 50% reduction for these properties for 12 months.

However, in a bid to encourage properties back into use, a task group of councillors recommended removing the discount which would net the council a further £20,800.