RLA : RPI : Empty promises on council tax exemptions

News from the Residential Property Investor, the bi-monthly magazine for RLA members

other artilces from the August / September 1999 issue

Empty promises on council tax exemptions - August / September 1999

Council tax exemption for vacant houses needing repairs or renovation is to be limited to one year.

The change, announced by Local Government and Housing Minister Hilary Armstrong last month, is to come into effect from 1 April next.

'One of the reasons why there is a hard core of unused empty dwellings is the cost of owning them is relatively low', claimed Armstrong. 'At present there is no council tax at all for those owners of dwellings which require or are undergoing major repair works or structural alterations.

'Long term empty properties create extra costs for councils because they can encourage vandalism, crime, accumulation of rubbish, vermin and a general nuisance. Exempt from council tax, the owners do not make a contribution towards these costs and they also benefit from other locally provided services like police and fire service's.

Currently council tax, which is calculated on a daily basis, is payable by the resident of domestic dwellings, or where there is no resident, by the owner. Houses in multiple occupation are an exception: non-resident owners are liable to pay the tax, although dwellings occupied by students only are exempt anyway.

In the case of unoccupied and substantially unfurnished houses there is no council tax to pay on the first six months from the house becoming vacant. Thereafter a 50 per cent reduction in council tax applies. But for those properties which require alterations or major repair works to make them habitable, there is complete exemption. From next April exemption will apply for the first 12 months only, after which the 50 per cent reduction will apply should the property remain unoccupied.

other artilces from the August / September 1999 issue

Member Login