Agenda item

Matt Davis, Director of Strategic and Operational Finance, was in attendance to respond to Members’ questions in relation to the report.

Members sought further clarification regarding ambiguity in the report, noting that it appeared to simultaneously state that the scheme was not always effective while also recommending its continuation. They referenced data on page 52 of the agenda pack, highlighting inconsistencies in the number of accounts charged a premium and questioning the scheme’s effectiveness in bringing properties back into use.

The Director of Strategic and Operational Finance responded by explaining that the report did not quantify how many more homes would have remained empty without the scheme, as such data did not exist. The scheme, introduced in 2013, aimed to encourage occupancy of otherwise vacant homes. It was acknowledged that the report’s wording could have been clearer, and it was noted that many councils had adopted similar schemes for the same purpose.

Councillors raised concerns about the clarity of the report’s language, particularly regarding second homes and the application of a premium. They cited a section indicating plans to contact second homeowners by December 2025 and questioned the clarity and timing of the policy’s implementation.

In response, it was clarified that the referenced paragraph pertained to second homes, not empty homes. It was confirmed that the Council had not yet introduced the second homes premium discussed in February 2024. A legal notice had been published to announce a consultation on the scheme’s introduction from April 2026. The Council planned to consult registered second homeowners before September to confirm their status, as some may no longer be using the properties as second homes. It was reiterated that the matter would be included in the December budget-setting process and it was acknowledged that the report was somewhat unclear.

In reply to further questions from the Committee, it was explained that the Council pursued all reasonable means to collect debt, including court recovery, and wrote off debts only in cases such as untraceable individuals, bereavement, or bankruptcy.

Members suggested that liability orders added weight to enforcement and helped recover costs. In reply, the Director of Strategic and Operational Finance confirmed that the associated costs were chargeable to the ratepayer if payment was not made by the due date.

Councillors asked whether the Council had considered combining the premium with compulsory purchase order (CPO) powers to prompt quicker engagement from property owners. The Director of Strategic and Operational Finance agreed to investigate this proposal further after the meeting.

In response to their requests for further clarification, Members heard that the proposal remained under consultation and would be evaluated as part of the December budget process. A business case would be prepared, assessing demographics and financial viability. The Council might proceed even if the scheme incurred modest costs, provided it yielded environmental or housing benefits.

Members enquired whether the Council also sought to recover costs incurred from clearing overgrown properties. It was clarified that the current discussion focused solely on Council tax recovery.

Members wondered whether the Council could sell debt, as private companies do, to recover costs. In reply, it was noted that officers had recently discussed this option, known as factoring. Members heard that, while it could provide immediate income, private companies might not act with the same social responsibility. The Council would consider all options during the budget-setting process to maximise benefits.

It was noted that the scheme’s primary goal was behavioural change and reducing the need for temporary accommodation, rather than revenue generation.

RESOLVED: That the Residents’ Services Select Committee:

1. Noted the proposed next steps to increase the empty property premium to the maximum allowed and introduce the second home premium from 01/04/2026; and

2. Commented on the information within the report and provided feedback to Cabinet where necessary.