North Northamptonshire Council could introduce changes to taxes on empty properties and second homes
North Northamptonshire Council (NNC) could introduce changes to taxes on empty properties and second homes, as it looks to bring buildings back into use and address local housing shortages.
A scrutiny committee will review the proposed changes at a meeting this evening (Tuesday, October 21), which include introducing a premium for long-term empty properties after one year and a second homes council tax premium.
If introduced, the changes could raise up to an extra £1.1m per year, depending on how successful it is in bringing properties back into use more quickly.
It is solely up to councils to decide if they should charge the premiums in their local area and at what rate, so long as it doesn’t exceed the statutory maximum set by the government.
Currently, NNC is charging owners of unfurnished empty properties that have been vacant for more than two years a 100 per cent council tax premium, meaning they pay double the normal amount.
This increases to a 200 per cent increase for properties empty for more than five years, and a 300 per cent premium for 10 years plus.
Second home owners in North Northants are not charged any premiums by the council under current rules.
A report to be considered by NNC councillors proposes reducing the length of time it takes to classify a property as long-term empty, so the premium would include any homes empty for more than 12 months.
It also recommends introducing a second homes premium of 100 per cent.
The local authority said it has 3,138 empty properties, with the majority falling out of use between zero and two years. Of those, 453 properties have been classed as long-term empty.
It is estimated that an additional 218 properties will be subject to the empty homes premium under the one-year rule and therefore would generate additional income in the region of £336k.
NNC has also identified 511 dwellings as second homes, which it says would generate a maximum additional income in the region of £804k, if the new premium is approved.
Mandatory exceptions will apply to both premiums, where necessary.
Recommendations from the scrutiny committee will be put before the executive in November, before being presented to full council at its meeting in December for a final decision.
If approved, the changes to the long-term empty premium will apply from April 1, 2026, and the second homes premium will be brought forward in the following financial year, in April 2027.