People who own second homes in a North London borough will face a 'council tax premium' from next month as the local authority becomes the latest to put into place a Government plan to free up properties. For those with second homes in Brent the cost of council tax will double, whilst properties left empty for more than five years will be hit with charges triple the standard rate.
From April 1, Brent Council will introduce the 100 per cent premium - the maximum increase permitted under existing legislation- on second home owners who use the property as a holiday home, for personal convenience, or between tenancies. The costs will match the charges introduced in 2024 for homes that have been left vacant for more than a year, which increases further if it's been empty for more than five years and further still if it has been empty for more than ten years.
Councils are being left to decide whether to implement the second homes premium locally. In London, several other local authorities have announced plans to start charging the premium from April 1, while Kensington and Chelsea is among those to have decided not to, saying it penalises those who have 'invested' in the borough.
Families in Brent are facing 'immense pressures' due to the ongoing London-wide housing crisis, according to the council. It claims the new charges are designed to 'encourage property owners to bring underutilised homes back into full-time use'.
Brent Council also revealed plans to again increase council tax by the maximum 4.99 per cent from next month, meaning the average Band D charges will rise by just under £100 - from £2,036.05 to £2,133.15. The changes will mean owners of second homes that fall within this band will have to pay an annual charge of £4,266.15 on that property.
It is the same premium that is already applied to properties that have been left empty for more than one year, with a 200 per cent premium added to properties left empty for more than five years and a 300 per cent increase if it has been empty for more than ten years. This means, from April, a Band D property that has been empty for more than ten years will cost the owner £8,532.60 per year in council tax charges. It is hoped the changes will encourage owners to bring the properties back into use.
Cabinet Member for Customer Experience, Resident Support and Culture, Cllr Fleur Donnelly-Jackson, said: "Britain's broken housing system means that we are struggling to keep pace with the numbers of homeless families approaching us for help. That's despite Brent leading the way in building new homes, completing the most affordable homes of any London council over the past two years, and the second highest number of new-builds overall in the past decade."
She added: "We know that demand still outstrips supply and additional measures are necessary to complement our building efforts. Second homes that are occasionally occupied can exacerbate housing shortages by effectively removing properties from the local housing market during periods of vacancy, making it more difficult for residents to find permanent accommodation.
"Discouraging the prolonged vacancy of second homes is essential to alleviating the housing crisis and freeing up more properties for local residents in need."
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