Decision details

This report sets out the current mandatory and discretionary Council Tax Discounts, Exemptions, Reliefs and Premiums that apply to Council Tax Payers in Fareham at Appendix A. It also recommends the adoption of a new Council Tax Reduction for young adults leaving the care system and changes to the discounts and premiums on empty properties and properties undergoing/requiring major works.

This report gives the Executive an opportunity to view the current mandatory and discretionary Council discounts, reliefs, exemptions and premiums that apply to Council Tax payers in Fareham.

The report also gives the Executive the opportunity to make some changes to the following discretionary discounts and premiums:

Care Leavers:

To offer a reduction in Council Tax to Care Leavers by considering the Council Tax due as irrecoverable either in full or in part, as a way of providing practical help and financial assistance to care leavers whilst they are developing independent lives and their individual life skills.

This policy will provide a 100% reduction to Care Leavers aged between 18 and 25 where any English based local authority has been acting as the corporate parent. The reduction will be awarded by considering the Council Tax as irrecoverable and will be applied if the Care Leavers pays Council Tax or lives with someone who pays Council Tax in Fareham since 1 April 2019.

Unoccupied and Unfurnished Dwellings (Class C)

To remove the discount currently allowed on empty and unoccupied properties which have been vacant for less than 1 month, so that no discount is given.

Unoccupied and Unfurnished properties undergoing alterations (Class D) 

To remove the discount currently allowed on empty and unoccupied properties undergoing or requiring major works to make them habitable, so that no discount is given.

Council Tax Premiums on Long term Empty Properties:

There are 46 properties in Fareham which have been unoccupied and unfurnished for longer than 2 years.  7 of these properties have been unoccupied and unfurnished for longer than 10 years. 

We don’t always know why a property has been left unoccupied and there may be many reasons. However, there is a shortage of residential accommodation in Fareham which is affordable for prospective tenants and currently over 1,100 people on the Housing Waiting List.

The Government has given Billing Authorities the power to increase premiums on long term empty properties which will encourage these very long-term empty properties to be brought back into use, as follows:

1.    From 1 April 2019 to 31st March 2020 where the property has been empty over two years, a 100% premium.

2.    From 1 April 2020 to 31st March 2021 where the property has been empty between two to five years a 100% premium and where the property has been empty over five years, a 200% premium.

3.    From 1 April 2021 where the property has been empty between two to five years a 100% premium, where the property has been empty between five and ten years a 200% premium and for property that has been empty over ten years, a 300% premium.

The Executive has agreed to increase this premium to 100% from 1 April 2019. However, it is now proposed that additional premiums proposed by the Government are introduced from 1 April 2020 and 1 April 2021 for properties which have been unoccupied and unfurnished for 2 to 5 years, 5 to 10 years and over 10 years, to continue to support the Council in encouraging empty properties to be brought back into use and releasing much need housing.

Owners of these empty properties will be notified in advance of the proposed changes. 

RESOLVED that the Executive:

(a)   agrees the approach for the proposed policy for up to 100% of the Council Tax for properties occupied by Care Leavers under 25 years of age, to be considered as irrecoverable; and

(b)   approves the latest discretionary reductions and premiums set out in Appendix A for:

(i)     0% discount for properties which are unoccupied and unfurnished for less than 2 years (Class C)

(ii)    0% discount for properties requiring major works to render them habitable (Class D)

(iii)   100% to 300% Long Term Empty property premiums for properties which have been unoccupied and unfurnished for more than 24 months