Council to again consider extra tax on empty homes

Derby City Council is set to look again at bringing in an extra tax on empty properties and second homes.

If approved, homeowners in Derby would pay a 100% council tax premium on properties that have been "unoccupied and substantially unfurnished" for at least one year from April 2027.

The same premium for second homes would come into effect the following year.

Councillor Shiraz Khan, cabinet member for housing, said the measures were to "encourage property owners to live in or sell" their empty homes.

A previous consultation on the same proposals took place in 2024 but was not completed due to an "administrative error" and no final decision was made at the time.

Council bosses said 65% of respondents to the previous consultation either agreed or strongly agreed with the proposals, but a new 12-week consultation will now run from Friday until New Year's Eve.

The consultation will seek views on both premiums, possible impacts, exemptions and "unintended consequences".

Based on a snapshot of properties in February 2024, the council estimated the premiums could raise about £950,000 a year in extra council tax after allowing for exemptions and unpaid bills.

Council bosses said these figures were "illustrative and are not current forecasts" for 2027/28 or 2028/29.

Under current rules, a 100% empty homes premium applies after a property has been empty for two years, with higher charges after five and ten years.

The proposed change would bring that premium forward, meaning owners would pay double council tax after a home was empty for one year instead of two.

There is currently no council tax premium on second homes in Derby, but if the proposals are introduced, second-home owners would generally pay 200% of the normal council tax bill.

Khan added: "[These measures] would help us to build a Derby to be proud of by reducing the negative impact empty homes can have on local neighbourhoods, bringing more housing to the market for people who need it, and raising additional council tax revenue for delivering and improving our services."

Cabinet members on Derby City Council will discuss the proposals on Wednesday and any final decision will be made at a meeting of the full council at a later date.

Listen to BBC Radio Derby on Sounds and follow BBC Derby on Facebook, on X, or on Instagram. Send your story ideas to eastmidsnews@bbc.co.uk or via WhatsApp on 0808 100 2210.