Owners of empty properties to be charged rates

All property owners will have to pay rates in Douglas in future

The owners of empty and run down properties in the Isle of Man's capital will be charged rates in future, the after the local authority voted to adopt a new policy.

Douglas Council has revised its approach to the buildings, previously classed as zero-rated, to encourage renovation to create more available housing.

The treasury had historically deemed dilapidated buildings as exempt, but after a recent tribunal revealed the stance had no statutory footing, the council updated its stance.

Council leader Claire Wells said the former system had been unfair on other ratepayers and the extra funds would go towards improving facilities in the city.

'Great impact'

Owners of empty properties will now be charged unless the building has been demolished.

The council had initially changed its policy in September to one of charging rates for properties that could not be lived in after the exemption had been in place for between 12 and 18 months.

A challenge to the change at a rent and rates tribunal hearing in April ruled that the Treasury's policy was only based on a ‘good faith agreement’.

The council said the government had not provided any legislation to the tribunal which allowed properties to have "ad-hoc allowances whilst being renovated" and therefore there was no obligation for local authorities to comply.

Speaking to the Local Democracy Reporting Service Ms Wells said: "We should be encouraging people to invest in their properties and make sure people can live in them."

There were "plenty" of properties in the city centre that could be renovated but had been left to "sit and rot" because rates were not charged, she added.

A government spokesman said the Treasury had been liaising with local authorities to find out their "views and preferences in tackling such properties”, and further work would be needed to understand the "legislative implications".

Additional reporting by Emma Draper, Local Democracy Reporter.