Council tax discounts, exemptions and premium second homes survey January 2025
Responses
The survey attracted 719 responses.
Most said they did not own a second home or an empty property. However:
- 68 respondents said they owned a second home within Hinckley & Bosworth
- 20 respondents said they owned an unoccupied, unfurnished property
- 13 respondents said they owned a furnished, unoccupied property
- Six respondents said that the property needed or is currently undergoing major repairs
Respondents who said their property was empty because of various issues:
- Two said their property was empty due to probate
- Three said they were between tenants
- Three said they were holiday homes
- One said they were waiting for planning permission to build an extension
On the proposal to remove the100% council tax discount on empty, unoccupied, and unfurnished properties for one month:
- 39% of respondents support the proposal
- 52% of respondents did not support the proposal
- 9% respondents neither agreed nor disagreed with the proposal
On the proposal to remove the 50% council tax discount Hinckley & Bosworth Borough Council currently offers on major repairs (major repair work/structural alteration that is not cosmetic) for 12 months:
- 35% of respondents support the proposal
- 52% of respondents did not support the proposal
- 13% of respondents neither agreed nor disagreed with the proposal
On the proposal for second homeowners to pay double council tax on their second property (a 100% premium) from 1 April 2026:
- 46% of respondents support the proposal
- 47% of respondents did not support the proposal
- 7% of respondents neither agreed nor disagreed with the proposal
The survey also attracted over 300 open-ended responses to proposed changes in council tax policies, particularly focusing on:
- Second homes
- Properties undergoing major repairs
- Empty properties
Overall, the responses reflect a mix of opposition and support, with some responses calling for more nuanced and fair approaches to council tax policies.
The most popular reasons for disagreeing with the proposals were:
- They unfairly penalise individuals who own second homes
- They are renovating properties or have inherited their homes
- May discourage property improvements and investments
- Exemptions should be made for inherited properties, those undergoing major repairs, or properties temporarily unoccupied due to life circumstances
- Impact on rental markets and the financial burden on property owners
There was a range of opinions on second home ownership. Many respondents argue against increasing council tax for second homes, stating that it unfairly penalises individuals who have worked hard to purchase these properties. They emphasise that second homes are often not owned by wealthy individuals but by those who have inherited them, use them to be closer to family or work, or rent them out to supplement their income. Some respondents highlight that second homes contribute to the rental market, providing essential housing and supporting local economies.
Conversely, some respondents support higher taxes on second homes, suggesting that it could help address housing shortages and discourage properties from being left empty. They argue that second homeowners should contribute more to the local economy and that higher taxes could motivate owners to either sell or rent out these properties, thus increasing housing availability.
Overall, there was divided opinion on second home ownership, with concerns about the fairness and potential negative impacts of increased council tax on these properties.
Handling of empty properties – open ended responses
Various approaches to handling empty properties were suggested:
- Opposition to increased taxes: Many respondents oppose increasing council tax on empty properties, arguing that it penalises owners who may be renovating or trying to sell the property. They believe that empty properties do not use council services and thus should not be subject to higher taxes.
- Support for higher taxes: Some respondents support higher taxes on long-term empty properties to incentivize owners to bring them back into use. Suggestions include doubling the council tax or implementing a sliding scale where the tax increases the longer the property remains empty.
- Exemptions and grace periods: Several respondents propose exemptions or grace periods for properties that are empty due to inheritance, probate, or major renovations. They suggest allowing a certain period (for example, six to 12 months) before imposing higher taxes to give owners time to sell or renovate the property.
- Encouraging renovations: There is a strong sentiment that properties undergoing major repairs should receive tax discounts to encourage renovations and improve housing stock. Some suggest reducing the discount period rather than eliminating it entirely.
- Compulsory purchase: A few respondents advocate for the council to exercise compulsory purchase of long-term empty properties, renovate them, and use them for social housing.
Overall, the open-ended responses reflect a mix of opinions, with many calling for a balanced approach that:
- Considers individual circumstances
- Encourages property improvements without imposing excessive financial burdens
How long should empty properties be exempt from council tax?
Respondents suggested various opinions on the exemption period for empty properties from council tax:
- Grace periods: Approximately 5% of respondents who chose to comment proposed a grace period of six to 12 months for empty properties, particularly those undergoing major renovations or waiting for probate and sale. This period is seen as reasonable to allow owners time to complete necessary work or legal processes without facing immediate financial penalties.
- Case-by-case basis: Some respondents suggest that exemptions should be handled on a case-by-case basis, taking into account specific circumstances such as:
- Inheritance
- Bereavement
- Significant repairs due to damage
- Reduced exemption periods: A few respondents recommend reducing the exemption period to encourage quicker turnover and renovation. Suggestions include reducing the period from 12 months to six months.
- Overall, the consensus from respondents leans towards providing a temporary exemption period of six to 12 months for empty properties, with flexibility for individual circumstances.
Last updated: 13/03/2025 14:57
