By Craig Smith

It is that time of year again when we find out whether or not our council tax has gone up and what we need to pay in the coming financial tax year. You may remember back in August we found out that the majority of local councils voted in favour of charging extra on empty properties and now we know more!

Local Councils

Based in Staffordshire we deal with a number of different councils, the main one beingStaffordwhich is our main area but also various other councils within the region. It seems that each council is doing something different now that they can charge extra for empty properties.

Stafford Council have informed us that they will still be giving a 6 month exemption for properties that are classed as unoccupied and unfurnished.  This is no different to the exemption that was given before which gives rental property Landlords time to carry out any repair work etc and find a new tenant. It appears that the only change is that there is no longer a 50% reduction after the 6 month period and the full amount will then need to be paid.

On the other hand, Tamworth Borough Council have reduced the complete exemption to a period no longer than 2 months, with the full amount then being payable after that period. Both of these councils will now charge 150% of the tax on any property that has been empty for more than 2 years. (Yes, one hundred and fifty per cent!)

Hearing from other offices around the country, it appears that most councils are going along this route of only offering a shorter exemption period or in some cases, none at all!

How Will it Affect Rental Figures?

The demand for housing is very high and the government is keen to develop more land to supply the extra stock. So it isn’t surprising that councils want to penalise those who leave properties empty when they could be used to accommodate more tenants.

Some people have suggested that Landlords will increase the rent on their properties to compensate for the extra council tax charges but put yourself in the position of a Landlord for a moment. If your property is empty, would you risk charging a higher rent to cover the charges, or would you prefer to accept a slightly lower rent for someone to move in more quickly? Suddenly, things don’t sound so rosy for Landlords.

What to do Next?

It is always best to check with your local council exactly when the charges are due before a property comes empty to avoid any nasty surprises. Also, it is advisable to ensure that the local council knows as soon as possible whenever a set of circumstances has changed, regardless of whether it is a rental property or not. As an agent, this is something that we always do which not only helps the smooth running of the files as they pass through but also ensures that our Landlords don’t end up with unnecessary charges.

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