Agenda item

The Leader presented the Council Tax Premium report which deals with long-term empty and second homes in Newport and the possibility of introducing Council Tax premiums on these properties. The other reports considered by the Cabinet today highlighted the consequences of the increasing demand for housing and the shortage of available housing stock.

The impacts are both ‘financial’ on the costs the Council incur in short-term homelessness accommodation, and also ‘societal’ for the individuals and families affected.

In addition to a general lack of available housing, Newport had a large number of unoccupied properties that remained persistently high: Council Tax premiums, if introduced, would encourage owners to take steps to bring their properties back into use.

In November Cabinet was asked to agree that a public consultation exercise be undertaken on introducing Council Tax premiums and this report provided the results of that consultation.

There were 470 responses to the consultation and the findings show that more than 75% of respondents agreed that Newport City Council should take steps to encourage owners to bring properties back into use: nearly 60% agreed with the introduction of a ‘premium’ to achieve this.

Although second homes are fewer in number, a consistent approach should be taken for these underused properties. Therefore, the report includes recommendations to adopt Council Tax premiums in Newport, for both second homes and long-term empty properties.

The legislation provided some exceptions that prevented a premium being charged in some circumstances. Following feedback from the consultation and to address stakeholders’ concerns, some additional limited ‘local’ exceptions were also recommended.

If the recommendations of this report were agreed, the matter would be taken forward to Council for a final decision to be made. If agreed there, they would be implemented on 1 April of this year.

Comments of Cabinet Members:

§  Councillor Clarke thanked those who took part in the consultation process and referred to the housing crisis throughout the UK, the Council Tax premiums would therefore help.  The Consultation set out what the premium should be with a 100% premium receiving the most positive response.

§   Councillor Davies mentioned that there was a housing crisis, with over nine thousand residents on the housing register in Newport alone. There was a disconnect when considering there were 2565 empty properties within Newport boundaries. Councillor Davies supported this proposal being taken to full Council and, if adopted, it would be part of a tool kit used by Newport City Council to increase the availability of housing stock in the city.

§  Councillor Harvey stated that officers worked hard seeking accommodation for residents and families that needed emergency accommodation.  Councillor Harvey supported the report.

§  Councillor Hughes referred to similar issues in North Wales and considered that Newport came to a sensible settlement with a premium figure at the lower end to encourage landlords to do something to improve these properties to put back into use when they were most needed. 

Decision:

Cabinet considered the results of the consultation and recommended the introduction of Council Tax premiums to Council in line with the preferred option shown within the report.