No More Council Tax Exemption For Landlords & Empty Properties, Probably

Martin – Did you get any information on how to apply to the high court for a judicial review?

Mr Allen – A coalition of private landlords on this matter sounds like a very good idea! How do we start?

When I initially complained to Durham County Council about having to pay 100% Council Tax on 3 of my properties (out of my small portfolio of 5), which are all in the same area and all became vacant at about the same time;, in addition to paying Council Tax on my permanent residence, I was told that they had implemented this rule to encourage property owners of 'empty homes' to bring them back into use. This rule has been in place for almost a year and there are now even more empty properties in Ferryhill than there were a year ago...can anyone tell me if this unreasonable charge, which directly discriminates against the small private landlord, applies to the housing associations too or is it, like the Selective Licensing fee, just a case of private landlords being stung?

Furthermore, the £millions given to DCC by the government as grant money to enable landlords to refurbish their empty properties has not only been turned into a loan by DCC but your property has to have been empty for 6 x months before you can even apply for a loan.

A property is no longer exempted from Council tax even if it is uninhabitable:
From 1 April 2013 the Class A and Class C exemptions (below) will be removed.
• Class A: Properties that require or are undergoing major repair work to make them habitable or undergoing structural alteration. These properties were previously exempt from paying Council Tax for one year.
• Class C: Properties that are empty and unfurnished, including new properties from the date of the completion. These properties were previously exempt from paying Council Tax for six months.
This means that from 1 April any property that is already unoccupied (furnished or unfurnished) or becomes unoccupied (furnished or unfurnished) will be subject to 100% Council Tax charge.
On the basis that Council Tax is charged to pay for the Police, Fire Authority and Council provisions such as refuse collection it is impossible that I could possibly be using 4 households worth of these facilities at the same time. Furthermore, when the tenants leave, owing rent, taking the keys and leaving the properties not only damaged but also filthy dirty, as they often do, I am not allowed to take their rubbish to the local recycling centre! I am supposed to take it to a commercial waste site where they will weigh the rubbish and then charge me for disposing of it… I don’t think so!!

In addition to the 100% Council Tax charges, I also have to pay the Council to remove larger items which tenants leave e.g. piddle ridden mattresses, broken televisions etc.,

As I am “living on-site” at one of my empty properties whilst I carry out the refurbishments, I presume that would be entitled to the 25% single occupancy discount – however this would mean that my normal residence would then be classed as a “second home” and I would therefore lose 15% of the single person occupancy discount there…

It seems that the only time Council Tax exemption would apply to my empty properties is if I am forced to declare myself bankrupt, which, the way things are currently going, is not beyond the realms of possibility.

Well it seems clear to me that the only way of resolving this is renting the property to a person called Mr Invisible, Mr Invisible is of European dissent and rented the property on a cash in hand situation. Sadly Mr Invisible stayed in the property for only a couple of weeks and then suddenly had to go back to his own home country without a forwarding address.
As an amazing coincidence Just after Mr Invisible left new full time tenants were found and put into the house.
Sadly Mr invisible has now gone and the local council will spend many months trying to trace Mr Invisible for his unpaid council tax, sadly he will never be found.

Happy days.

The fact that both Livin and Four Housing are allowed a 6 x month council tax exemption period whilst we are not is direct discrimination, against the private landlord. Aside from unfair,I believe that discrimination is illegal. A small group of private landlords have joined forces in an effort to have Durham County Council's decision, that we should pay 100% tax as soon as our properties become empty, repealed. United we stand - divided we fall. Would anyone like to join us?

I most definitely would. Can you email me details to barrie underscore (the symbol not the word) mcdermid at (the symbol not the word - this prevents phishing emails in case you're wondering) hotmail dot com

Thanks

Hi All,

I am not a landlord, just an owner of a property for the last 15 months which me and my partner are working on. It has needed major works doing to it and has obviously cost a lot so far. We are most definitely not rich and didn't expect it to be going on so long but, such is life, we have had a few unexpected expenses along the way. The whole time, I have been paying my council tax for this property with a 25% single person discount, as I am the owner and the property was bought with the intention of (eventually) making it my own home (my partner has his own flat). I recently contacted the council to ask whether I was entitled to any further discounts as the property was still undergoing works and was told that not only was I not entitled to any kind of discount at all (not even my 25% single person discount) but that they would be backdating my discount to April last year, adding an additional £200 to my bill for this year! My monthly payments have now increased to over £110 per month when I was already really struggling to meet the £80 previous bill! I have shot myself in the foot by trying to reduce my bill, it has been increased instead even though the notice I gave them was that I have been, and would still be, using a smaller proportion of their services as my property was not habitable at the moment.

I am not a landlord but this is affecting me too, I am just a normal working person currently renting and paying bills privately elsewhere whilst my property is being worked on, and yet I have no support or consideration from the council for this. I feel so angry, I pay all of my taxes already like everyone else and this situation has arisen due to me trying to actually become a home owner, something which we are continually told to do by this government!

I am at a loss as to what to do, I am waiting to hear back from the council as I emailed them explaining the situation nd that either way, my 25% discount is the least of what I should be entitled to but I have a feeling they will say I can't even have that. Does anyone have any suggestions of how to approach them with this? I wish I had never contacted them in the first place now, but if we don't then we are breaking the law for not keeping them informed, even if we know how unhelpful and money grabbing it will make them! It's a joke.

Michelle,

I would suggest contacting the minister for housing, Kris Hopkins, and tell him exactly how you feel.
To me, the people who should be paying are the people who own derelict, run down, unsightly empty properties but are doing nothing about fixing them up. I feel that if you are actively renovating, or between tenants, then due consideration should be made. Then again, I am not the minister for housing.

Neil

Thank you Neil.

I have contacted him via his website and also directed him to this page to show him that this problem is affecting many people.

Let's see if we actually hear anything.

Michelle

David - Mr Invisible is good idea but not allowed under the "Selective Licensing" rules implemented by DCC :(

NEWS FOR SMALL PRIVATE LANDLORDS.
Whilst EDF are presently providing the most competitive rates for energy supplies in the North East, I have been informed today that all pre-payment key meters located at above 6' and where you have to stand on something to insert the key have to be lowered, in accordance with the latest Heath and Safety Regulations. For "many", probably hundreds of thousands of older style, properties this is totally impractical as you wouldn't be able to open the front door...
Move to the side to stand on the stairs to insert the key is not allowed either.
The option is a credit meter which means bills for the tenant, regardless of their nature or limitations... anyone else aware of this?
And who in their right mind would locate a key meter at a height of 7' in the first place??

Barrie McDermid- Looking forward to your FB Page for private landlords within the DCC area. Ferryhill Residents Association Meeting MONDAY 2nd June, with DCC Councillors - ALL WELCOME to attend...

I've just set up a Facebook group entitled landlordsNE (mainly for North East landlords) with this issue being one of the motivating factors.

Please all, feel free to join.

Regards

Barrie

To get on the right side of council tax for the period in between simply cobble up another tenant which will 'sign' a 6 month contract obtained free from the rentfair website, then wala the liability transferred simple as thar. By the way only about 45% of renters actually pay council tax therefore its a losing battle for them. You will find that every multicultural landlord has been abusing this for the last decade. Well that's just England and Wales for you. My advice pack up and leave.

I empathise with David Britain and other landlords in relation to this unfair tax discretionarily set by the local council. Same for Havering:

1. My liability for an empty property due to need for redecoration between tenancies subject to 100% council tax.

2. No discount given even if I am I'm not living anywhere near the property and therefore not utilising the local services. Had I been living there as a single person, the reduction would be 25%!

The council's excuse is 'avoiding empty properties' is weak- as landlords, I belive we'd all prefer our properties to be occupied but we're not in the position to do so due to redecoration/ repairs etc. We provide an option for accomodation, right?

I've just spent a small fortune on redecorating/ cleaning/ bringing up to standard my property due to heavy wear and tear of tenants.

There is a preconception that landlords pocket's are lined with gold. OK, it is my second property but I moved away from this area simply due to my work situation.
In all, I'd like to appeal and feel aggrieved but as it'a a 'rule' set (even if inconsistently across the country), I feel my hands are tied.

The more rules/regs and charges....and the more I realise a change if strategy for me is due.
Massive shortage of affordable rents in our town, absolutely no DSS options for tenants and us landlords are in a great position. But this 100% charge is unfair.
I will sell slowly over next few years and begin to spend it - then this won't be an issue for me.
I will no longer be the 'wealthy landlord'. I can be the hard up 'saver' and get empathy for interest low rates, take no risk, provide no benefit for others.
Genuinely - and happy days too.

We have a month's grace in Portsmouth which is more than enough time to paint etc and find replacement tenants. I would agree that to charge 100% from Day 1 seems very unfair.

When implemented in April 2013, the excuse used by DCC for charging private landlords 100% council tax from day one on every empty property is "to encourage landlords not to have empty properties". However as there are more empty properties in the area where my houses are than there were a year ago, so clearly this hasn't worked... Furthermore, both the organisations Livin (providing council housing) and Four Housing (local housing association have a 6 months exception to council tax "because they are registered as charitable organisations". What really amazes me is DCCs ruling that despite being uninhabitable by environmental health standards, due to ineffective repairs by the "agent" I was using and destruction by the previous tenants, DCC have decided that a property can only be exempt if it literally has no roof! I'm sure that this was not the intention when central government handed power over to local councils!

I have read all of the comments in this blog. This is clearly a nightmare for all of us with empty property for whatever reason. I am a landlord & to hear again & again that empty property tax was introduced to either encourage landlords to sell or let out their properties is utterly ridiculous. It's just incredible how government justify these mind blowing money making decisions they make without any thought of how this massively impedes on society. NONE of us want empty properties, so encouragement to occupy or sell by way of taxation is absolute nonsense. None of us are just sitting around twiddling our fingers hoping someone is going to call us & ask if they can rent or buy our properties, surely! Are we to be taken for mindless individuals with no business sense. Bradford council however have informed me that the government has withdrawn financial support for councils & have now made the councils responsible for collecting in effect their own wages. That's why they've done what they have with empty property tax. Won a few battles over the years, many of them legal matters. Can we push this collectively in the right direction, get some support from Landlord Forums. Real life stories & the effects of this taxation need to be broadcast. It's wrong, unjust & in most cases unsustainable & if you can't afford it, well then they'll send the bailiffs round to your residential address with enforcement notices. Let's change that shall we.

https://www.facebook.com/groups/749221151815914/

Small, responsible, Landlords with properties in Ferryhill, County Durham are welcome to join this community action group. Our current objective is to ensure that the views of the people of Ferryhill are considered in DCC's County Plan. United we Stand - Divided Durham County Council will drive us out of business.

I have been managing my own properties for 15 years i had a serious operation last year. Therefore have been unable to look after my properties. They have been empty for nearly 6 months and all bradford city council can do is send me bills, send me fines and send the bailiffs. Despite there being tenants in the property they want me to pay.i dont want the hassle anymore but I cant sell the properties cheap as paragon mortgages has said i have to sell at market value but due to the economy nobody is buying properties unless the price is below market value.
Any suggestions?

Saif
Awful for you to feel this way. I would be tempted to revisit why I own the properties and consider having someone manage them and get some monies coming in.
I find myself paying out £1000's a year for letting fees/tenant renewals and repairs - but it is better that them being empty. I am lucky because the reason I need an agent is my employed work keeps me too busy - but I try not to think of the cost...just the little bit of profit.
Another option is to at least try sell one....15 years if ownership should allow some profit somewhere?
Not judging - I don't know the full details - just thinking out loud.
I guess my advice is treat each house individually - you may have a good one to sell, a good one to ask a letting agent to manage and another easier one you can manage yourself.
Whatever you decide j hope it works out.

Said, I have every sympathy and yours is a situation any of us could find ourselves in. I would urge you to contact your MP and explain your situation which highlights how damned unfair this situation is. I can't believe this forum is the only place where people are aggrieved.

I've just purchased a rental investment property which is currently empty. The local council are charging 150% council tax..... Any advice on how to avoid this? This is based on the property being empty for 2 years prior during a renovation? This is not something I could possibly have known when purchasing the property? I want to challenge this but also don't want to flog a dead horse....help.?..

This is not something I could possibly have known when purchasing the property?

Why not?

Benji, all your comment serves to do is belittle someone who is asking for help. We should be in this together and be supporting each other.

I have had similar with a purchase. I was aware but it did seem unfair.
My property was very tired a needed a bathroom.
My advice from experience (and its not very helpful in terms of a solution) is unfortunately to let it very quickly and not waste energy with the council.

@Barrie,

It is basic due diligence when buying a property.

Those not carrying it out are taking a gamble and possibly undercutting other landlords and investors in the process.

By stating the bleeding obvious it might stop someone else from making the same mistake.

Clearly the OP didn't think it was something they should check but I'm sure they will be doing so in the future.

@Ian,

Check and double check the dates, occupation and work start dates. There is a fair chance the council have screwed up somewhere along the line. If they have, appeal to them in the first instance and then to the LVT when they fob you off.

Move into the property whilst you renovate, claim single person occupancy and pay the 75% rate.

Complain to your council and local MP that carrying over the 150% penalty rate to new owners deters the stated aim of getting properties back into use.

Check before buying in future and price your offer accordingly.

I had to laugh at Angela's comment further up. I'm currently renting out my home but I'm no rich landlord, sometimes peoples circumstances in my case a divorce and a house in negative equity means people have no choice but to go down this route. I just about cover my mortgage and thanks to this new council tax rule when my house was empty for 3 months I also had to foot the council tax bill. Maybe next time think before you type Angela as I make nothing from being a landlord and I hate it, not everyone is like the landlords you see on TV house programs.

I let a friend of mine stay in my house randomly few days a week as his work moves him about. I got a letter from the council making out i am in arrears on council tax for the period he stays. is that proper or shall i challenge it?

Its only a local authority that can make a charge to provide zero service - I have a property coming up for rent in March 2015 - I have no doubt that of all the utilities to contact in my case Birmingham City Council, community charge will be the most frustrating.
Before 2013 I would spend 2/3 weeks decorating and preparing for new tenants - not anymore 2 days max - deep clean and re-touch up paint work

Out greedy durham county council charged me a days council tax when two tenants handed each other the keys to a property.

They charge 100% (so single person discount etc) and bar you from the recycling centre of you need to tip rubbish left by tenants.

If you try and charge tenants to clear rubbish you are a money grabber..

There's little point in providing good affordable housing (that's better than gheir own social housing)

I've been in dialogue with Durham County with regards to a council tax bill I now hold, which is a charge of 150% on a property. The property has been void for over 2 years due to the amount of upgrading work needed, some of which was left by the last tenant(funds have been tight therefore I've upgraded as I could).

Research has taught me that if a property is empty for 24mths+ and 'Unfurnished' then a fee of 150% is applicable.

If the property is 'Furnished' and to the same duration given above then the charge is 100%.

My complaint to DDC is that I was not aware of this rule nor had I been made aware of it.

I have however since been informed that I could; if accepted; take out a low cost loan with them to help cover the cost of the repairs necessary from the result of the previous tenant (Partial). How absolutely fabulous is that hahaha. And these people run our County!

I have asked for them to provide a definitive list of the classification 'Furnished' and await their email response (one week on from request).

I did however have an interesting conversation with one of their officers in recovery today who gave me a vague indication that the property needed to be 'habitable'.....so not a lot of help there then.

The property has a cooker, white goods and carpets, running water, heating and bathroom facilities at present. I intend to put a sheeted mattress on the floor and contact DDC for inspection. Will this suffice to get me back to the 100% bracket?

I also asked her how DDC could justify the additional 50% charge, which I see this as discrimination, to be told that DDC had to make up their shortfall from central government somehow. Legalised Theft!

I should mention that I have been in touch with our local councillor, who basically wants nothing to do with the issue.

Has anyone else come up against any of the above or any ideas?

I have a number of HMO properties that I had been managing for my terminally ill father. The local authority - Bedford Borough Council not only re-banded one HMO as Band A units, generating a staggering £600 per month for their coffers (a smallish 3 bedroom semi)! But are suspiciously slow when the banding needs to go back. I am selling the house as it no longer pays for itself when you have to add on the HMO licensing requirements. I call the VOA to get it revalued (even though it was the council that valued the units to Band A - strange that - not!). You do not get to speak to anyone in VOA, just an answering service and you have to hope that you are by the phone when they ring you back - they do not try more than once. Meanwhile, I pay £600 per month waiting for it to be revalued so that I can complete the sale that will turn it back to a family house. Call me cynical, but it stinks of money making. It also turfed 6 good tenants onto the street that were very content to live there. They will be left with no low cost accommodation in this country once the socialist councils destroy the market. They rake in the money so they can fund stupid waste of money schemes.

Why not tell the council the house is in probate?

That's zero rated.

TSmith,

Not entirely sure I understand your situation but I think you need to put things in writing as a formal request.
A telephone request is classed as informal and has no right of appeal.

Stephen Patterson and Mr P we need unity to deal with DCC. Please consider joining the LandlordsNE fb group. DCC obviously couldn't care less about how charging 100%-150% Council Tax on empty properties adversely affects small, private landlords. FYI DCC had/have a massive pension fund deficit and pay at least 22 members of staff in excess of £150,000 per year...
http://www.teesdalemercury.co.uk/Articles/-727m-blackhole-in-council-pension-fund-is-revealed
http://www.sunderlandecho.com/news/local/all-news/council-has-727million-pension-hole-1-4450128

COLCHESTER: 100% council tax on vacant unoccupied property, NO grace period.

No discount as well as charging for double adults on zero residents.

Institutional theft that Bankers would be proud of!

Shameful !

Landlords are also expected to take on the families etc the Council will not house. Not by me any more, by the hair on my chin-chin-chin !

A thought - DCC maintains that a judicial review can only be instigated if the rule is unlawful or irrational.
If a property is uninhabited I would say that council services (Refuse collection, Police, Highways etc) are not being consumed so it would seem irrational to me for charges for those services to be levied. Anyone think that might be grounds?
My council Torbay gives 1 month.
Application of the rules is simply a revenue raising exercise as we all know so only a change to the overall legislation will prevent them taking the easy option.
Don't really hold out much hope of success however!

Best of luck keeping void periods down people.

Johnnymag.

Can a tenant 'take' with him the month's discount(without the landlord's knowledge)
allowed when he moves out? Surely the property is still occupied until the date he leaves. How can that be when the council tax is on a property not a person?

Absolutely disgusting we,as landlords have to pay 100% council tax when the property is not being rented between tenants. We can't get a single person discount yet there is less than one person living there so it doesn't make any sense as obviously no one is using any services so how can the council possibly charge us for something we don't be if it from or use? No wonder so many people are sick of this country.

Because the property we just purchased had been "long term unoccupied" by the previous owner, we are liable for double council tax until our property is habited/let. This means that there will double council tax for us to pay to Tunbridge and Malling Borough Council until our works are completed (to improve the housing stock, and make better accommodation). How can this be fair or just? There is no right of appeal. Every Council is able to set their own Council Tax rules. I believe Government needs to change this ruling so that the same rules apply to everyone across the country.

does anybody knw if because my rental property was abondabd so i couldn't gain entry for 48 days then when i did it took a month to clean and redecorate and to repair damage left by the bad tenant who left owing about £3000 for rent / services / etc so if i can't gain entry for 48 days and the tennant hasn't given notice how can i be responsible for the 2 months council tax before i can go in there ?? i dnt understand ?

Wirral council you get nothing. Bought a property that had been empty for two years(didn't know at the time). So you need to pay 150% council tax. No exemptions for works,empty, empty unfurnished,nothing.

From April 2019 not only do you have to pay 100% council tax for a property, but you also have to pay 100% Vacant Premium - making to total 200% council tax on property that has been vacant for two years.

I feel very punished by this and it is likely to put me 1) out of business in the shop below, or 2) in a mental institution, because the tenant(s) either have left me with debts and unpaid rent upto thousands of pounds, or property damage. Meaning I have been punished in every way possible for not having a flat above the shop in use.

I can't take much more, doubling the council tax adds insult to injury, because I couldn't afford to fix the damage before, how can I now?

Does anyone know where we go to make our protest known?

Lyn,

I totally sympathise with you and the situation you find yourself in. Someone correct me if I am wrong, but I think the government would love to get rid of private landlords completely. They do not seem to appreciate the service that we provide when there are no other alternatives for people needing a roof over their heads. Yes, there should be more council/social/affordable houses, but there should also be more credit given to landlords for the grief we often have to put up with from every angle.
I see reports that lots of landlords are doing AirB&B rather than long term lets. I see lots of landlords selling up as it gets to the point where it isn't worth the hassle.
My suggestion (for what it is worth) is write to the head of finance at your local council (they are normally the one who decides about council tax), write to the minister for housing and write to your local MP. I admit that it will probably make absolutely no difference at all, but you never know.
If the flat is in a really bad way take photos and add them to your letters. Try and get someone in authority on your side, you never know they might be lenient.
Would converting the flat to 'storage space' for your shop help? IE: don't use it as a flat, just extend the business into it.

Sorry I can't offer more.

Neil - Northumberland

Just read these comments again.
I’m currently paying empty property tax on a property I’ve been actively marketing since Christmas. We’ve had 3 interested parties pull out (after paying the usual letting fee’s) for various reasons. Nothing to do with the property itself, just personal reasons. Each time the property has been under application, we have stopped further viewings from other interested parties.
So....if the reason for “empty property tax” is & I quote “an incentive to landlords to rent out their properties” how in cases such as this can it be justified.
I believe the way to approach this, is to prove that we are marketing our properties. We are fixing our properties etc, in order to rent them out, but circumstances outside of our control are preventing that. Who knows of any landlord by the way who doesn’t want to rent out their properties.
This law was brought into place because of the wealthy property owners in London who don’t want to rent out their multiple luxury homes.
This should not have been passed onto every other run of the mill landlord across the country.
We need to be heard by these government officials who conjure up these new tax laws, who are simply ignorant to how financially devastating, not to mention mentally this is impacted on so many of us.
Does anyone know how we can go about being heard on this?

nndc have told me when my tenants leave I will have to pay full council tax I live in the same village as our rented out property it does not make sense to me I need to clean up and redecorate before we put the house up for sale we have had enough of the renting nightmare

Good Morning,

Could you please do something about Councils charging landlords council tax on empty properties because they can not sell or rent properties now owing to the corona virus.

I have written to the Housing minister complaining about this.

Kind Regards
Roy Hopkins

I had a tenant leave mid-March 2020, just prior to the lockdown and my property has been empty ever since. The council allowed 100% CT discount for one month which straddled the two fiscal years 2019/20 & 2020/21.

As the council's website provides little information, I am looking for answers to two questions:

(i) Are they correct in straddling two fiscal years? Should not each year be dealt with separately?

(ii) When I do finally find new tenants, they'll obviously be paying the CT. But what happens should they leave and I become empty again? Is the discount only given the once or does it restart with every new empty period?

Thanks in advance for any answers.

Wehave been trying to find information on our present situation and came across your site which I found very interesting reading all the comments on here hoping I could fine an answer to my
question.
We have a listed Coach House which we own but is empty at the moment but we have been told by our local Council we have to pay the Council Tax. We havn’t let it because we are in the process of selling it. We understood if it was a listed building and empty we would be exempt from Council Tax.
I would be very grateful if you could give me some advice please. This is the only property that was rented out. It has been empty for 5 months.

Thank you.