Cotswold District Council is set to clamp down on empty properties and second homes to tackle the housing crisis in the district – where house prices are 14 times the average salary.
The District Council will be charging a premium on houses that are left empty for more than a year, or where they are being used as second homes, to help fund more affordable housing. This follows a change in legislation that allows councils to charge extra council tax to help bring empty homes back into use.
The extra premium for empty homes and second homes was unanimously voted through by Full Council on Wednesday 20 March in a bid to bring more homes back on the market for people to live in permanently.
The Council will look to use any additional funds it receives from the premium to help in its effort to tackle the housing crisis in the district. The funds are estimated to raise over £3 million which the District Council would retain around £240,000 a year, to be spent directly on the delivery of new affordable homes for local people.
Gloucestershire County Council and Gloucestershire Police will also benefit as they will receive around 90% of the additional money raised, the district council is seeking discussions with them to ensure that these extra funds are spent in the Cotswolds.
Councillor Mike Evemy, Deputy Leader of the Council and Cabinet Member for Finance, said: “We are in the grips of a housing crisis, with property rents and mortgages being out of reach for most people who have grown up in the Cotswolds and want to continue living here.
“These changes are all about getting more homes back on the open market for local people and we will use the extra funds we get to create more affordable homes in the district. We will also be encouraging the county council and the police, who will also receive more funding, to reinvest it in the area as well. This could be a positive change that will make a real difference to the number of homes available for people to live in.
“We understand the impact this could have on holiday homes which can’t be used as permanent housing. That is why we are proposing to exclude those homes from this tax, subject to final government guidance.”
The additional tax would apply to empty homes from 1 April 2024 while second homes would see the new rates applied from 1 April 2025 following a one-year notice period.