Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: February 13, 2025

Purpose:

Content: RESOLVED that the Council be recommended to approve the change to the empty homes premium, so that properties which have been unoccupied and unfurnished for one year, instead of two, will become subject to the 100% premium from 1 April 2026.     Reasons for the decision   On the 19th of November 2024 Hampshire County Council wrote to Local Councils (appendix A) asking that for financial reasons, we consider introducing both and empty homes premium and a second homes premium in 2026/27. The majority of Hampshire Districts and Boroughs have or are about to introduce the Empty Homes Premium (100% Premium after one year) and Second Homes Premium. (100% Premium).   Should the recommendations in the report be agreed by Cabinet, for onward recommendation to Council, this would bring EHDC in line with other Hampshire Authorities who have or are about to introduce the Empty Homes Premium and Second Homes Premium.   The Cabinet did not agree to recommend that the Council implements the 100% second homes premium from 1 April 2026, due to the potential impact on investment in the district.   Alternative Options considered   Option 1- The Council could opt not to levy the empty homes premium when a property has been empty for between one and two years or to levy the second homes premium. This would result in a loss of income and would not be in-line with other Hampshire Councils.   Option 2 – The preferred recommendation which will bring us in line with other Authorities within Hampshire and will potentially generate additional income for EHDC as shown in the table below.   Change the Empty Homes Premium so that properties which have been unoccupied and unfurnished for one year, instead of two, will become subject to the 100% premium from April 2026.   And approve the implementation of the 100% Second Homes Premium from April   2026.    From a funding perspective, based on 2024/25 Band D average, these would potentially generate the following.   Option EHDC HCC Police & Crime Fire & Rescue 2nd Home £65,526 £683,825 £116,611 £36,947 Empty Home* £69,934 £729,823 £124,455 £39,432 Total £135,460 £1,413,647 £241,066 £76,379   *Assumes all are over 6 months, further analysis would be required to confirm how many properties are 6 to 12 months and therefore exempt.   This decision is reserved to the Council and is therefore not subject to call in.