Owners of empty and second homes in east Suffolk will have to pay a 100 per cent council tax premium if the government passes new legislation.
Every member at East Suffolk Council’s full council meeting voted in favour of the proposal, which will come into effect next April if the Levelling Up and Regeneration Bill gets royal assent.
Maurice Cook, cabinet member for resources, said: “The council and its predecessors has lobbied for years on the high levels of second homes in the district and the issues associated with this.
“These problems include the impact on local housing supply and the loss of income to local authorities resulting in second homes being liable for business rates rather than council tax.
“Reducing the number of long-term empty properties has also long been a council priority.
“We currently charge the maximum council tax premiums on long-term empty properties that are allowed under the current legislation.
“These recommendations are for additional council tax premiums. All existing premiums will remain in place.”
The Levelling Up and Regeneration Bill was published in May last year. As well as allowing the 100 per cent council tax premium on empty and second homes, it would reduce the minimum period for a home to be empty before this is applied from two years to one year.
In three East Suffolk parishes, 30 to 40 per cent of properties are second homes; in about 10 the proportion is 20 to 30 per cent and in about 19 the proportion is 10 to 20 percent. For the remainder, the proportion is zero to ten per cent.
Councillor David Beavan, leader of the Green, Liberal Democrat and Independent Group, said: “People might well convert their second homes to businesses to avoid the extra tax.
“I hope the valuation office will share lists of registered businesses with HMRC so they can check if these have made an income and are legitimate.”
Mr Cook explained measures will be put in place to ensure businesses that are not legitimate are identified and the homeowners pay the premium.
It is anticipated that the increase in income resulting from the premiums would be £717,000 for East Suffolk Council, £5.853million for Suffolk County Council and £1million for Suffolk’s Police and Crime Commissioner.
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