Members are requested to consider the report found on pages 171-174 of the Cabinet agenda pack for 6 February 2024 and make the following resolutions:
1. For 2025-2026 a premium of 100% be charged on all eligible residential properties that are not occupied as a main residence and are substantially furnished.
2. Subject to the outcome of the Government’s consultation concerning the exceptions to the premium, the criteria for the second home premium policy, be delegated to the Director of Housing and Communities in consultation with the Cabinet member for Housing, Revenues and Benefits.
Minutes:
Cllr Betts moved the recommendations which were seconded by Cllr Moss. Cllr Betts then introduced the item.
Mr Ward asked Mr Bennett, the Monitoring Officer to clarify if members should declare an interest if they have a second home in the district. Mr Bennett confirmed that an interest should be declared and it would preclude that member from participation in the debate and the vote.
No declarations were made.
Cllr Brown-Fuller asked if funds could be ringfenced for the areas most effected. Mr Ward explained that the money generated would be allocated to the general income fund. He added that the council could decide to ringfence the money.
Cllr Ballantyne asked if the policy goes far enough to tax second homes. Cllr Betts explained that some second homes will have to be excluded due to the exemptions set. These may include those properties actively marketed, annexes and holiday park homes where residents cannot occupy the property for the whole calendar year.
Cllr Chant requested a legal definition of substantially furnished. Mr Jobson was invited to the table. He explained that there is no definition as it is proportionate to the size of the property – each assessment would be made on its own facts by his inspecting officers.
Cllr Burton asked how Air BnB would be affected. Mr Jobson explained that the Government is looking to tighten the business rate rules. If a property does not fall in the business rates category it will be subject to council tax. Mr Jobson explained that members may receive more queries from the public as the Council Tax team would be contacting more property owners to ensure they are in the correct category.
Cllr Briscoe supported the proposals. He asked whether the additional monitoring would require more staff. He also asked if the numbers can be used in the Local Plan. Mr Jobson responded and explained that additional staffing resources are being discussed. He added that every customer being charged an empty home premium is entitled to appeal. This will have a significant time impact. Mr Jobson confirmed that the council would be asked to determine which house is the main residence. Depending on location will depend on the premium. In relation to the Local Plan Mr Frost explained that it was unlikely that the numbers could be used.
Cllr Potter asked what process will be used to investigative second homes. Mr Jobson explained that officers would in the first instance make an appointment. They may ask questions such as electrical use of the property, ID, children’s schooling locations. Mr Jobson explained that the council knows which properties are second homes and will continue to gather information to ensure any changes are investigated.
Cllr Donna Johnson thanked Mr Jobson for explaining the monitoring. She explained that on the Manhood Peninsula second home ownership has resulted in an increase in property prices. She asked if funds could be allocated to the communities who are most affected.
Cllr Brown requested clarification of the £580,000 income figure. Mr Jobson explained that he had taken the proposed exceptions into consideration so the estimate is as accurate as possible.
Cllr Betts wished to thank Mr Jobson for his exceptional work.
Cllr Burkhart left the meeting.
In a vote the following resolutions were agreed:
RESOLVED
1. For 2025-2026 a premium of 100% be charged on all eligible residential properties that are not occupied as a main residence and are substantially furnished.
2. Subject to the outcome of the Government’s consultation concerning the exceptions to the premium, the criteria for the second home premium policy, be delegated to the Director of Housing and Communities in consultation with the Cabinet member for Housing, Revenues and Benefits.