Council considers extra tax on empty homes

A council says it is considering bringing in an extra tax on empty properties and second homes.

If approved, home owners in Derby would pay a 100% council tax premium on properties that have been "unoccupied and substantially unfurnished" for at least one year from April 2025.

The same premium for second homes would come into effect the following year.

Derby City Council said the measures aimed to "encourage property owners to live in or sell their empty homes".

The council said it wanted to encourage the occupation of vacant homes

A nine-week consultation has been set up, which will close in December.

A council report said there were about 2,300 empty properties in the city in 2021, the last time the authority published information on the issue.

Housing bosses added the move will "help add more homes to the local housing market" and "reduce the number of underused properties, making sure more housing is available for residents who need them".

The changes are in line with new guidance introduced by the Levelling-Up and Regeneration Act 2023.

Shiraz Khan, cabinet member for housing and property at Derby City Council, said: "The proposed changes aim to encourage the occupation of vacant homes.

"These proposals are designed to align with the council's socio-economic duty by minimising the financial burden on vulnerable and low-income individuals while maximising the potential of vacant housing stock within the city."