Developer angry at council tax hike on empty homes

A previous empty property which the investor refurbished

A property investor has criticised a council for charging him extra council tax after he bought two derelict properties to renovate and rent out.

Ed Stroud, an investor for Crown Property Partnership Ltd, has invested in run-down homes in County Durham for six years but says he will "never buy empty homes" in the area again.

Adam Cliff, policy lead for the Empty Homes Network, said tax premiums were brought in to "disincentivise" landlords for keeping homes empty and not to penalise new owners buying properties.

Durham County Council said their premiums on empty homes were in line with other local authorities.

Empty homes premiums are used by councils to increase council tax charges depending on how long a property is left empty.

There are exemptions in place and the county council has a financial hardship clause to help people who inherit empty houses.

Ed Stroud has been investing in properties in County Durham for six years

Mr Stroud said he had previously worked with the council's dedicated empty homes team on a burnt out cannabis farm in Ushaw Moor and had been exempt from the premium tax.

Following that success he bought two more homes and renovated them but said he did not feel it necessary to carry out all the work - including plastering - for the exemption and got hit with an extra £2,000 bill.

"I bought two derelict properties in Bishop Auckland and I was told I had not hit the criteria of new electrics, re-plastering and a new roof.

"I got hit with 100% more council tax on top of whatever I already had to pay," Mr Stroud said.

Buyers of empty homes face extra council tax unless they can apply for an exemption

Mr Stroud said he was told by a council officer that the premium tax could rise by 300% depending on how long properties were empty.

He said: "If you want people to do up houses this is literally the worst thing you can be doing.

"I won't be buying any houses in County Durham again."

Mr Cliff said the law was brought in to deter landlords from leaving properties empty.

"The empty homes premium is introduced as a deterrent and disincentive for owners to retain empty and unoccupied properties, unfortunately the legislation means that the charge is transferred to a new owner on completion of a purchase," he said.

"We're also seeing local authorities recognising that this is as an additional source of income, which is not the intended outcome for why the premiums were introduced."

The Empty Homes Network is currently lobbying for a change to the legislation to give empty homes officers more powers to help new owners renovate properties.

'Fix housing crisis'

A spokesperson for the county council said the premiums were introduced to bring properties "back into use".

"We continue to offer discretionary support to owners in some circumstances.

"This includes where properties are for sale or to rent, in need of renovation or waiting to be demolished because they are part of a renovation project," the spokesperson said.

A government spokesperson said: "We are determined to fix the housing crisis we have inherited, and we know that having too many empty homes in an area can have a significant impact on local communities, including in Durham.

"That's why councils can opt to add up to 100% extra on the council tax bills of empty homes to help local leaders protect their communities."