Derby residents are set to be asked for their views on charging a higher level of Council Tax on empty properties, with the aim of bringing these homes back into use.
Cabinet members are being asked to approve a 12-week consultation exercise at their meeting on Wednesday 7 October. This would seek feedback on proposals for a 100% premium – meaning the owner would pay double the usual rate – where a dwelling has been unoccupied and substantially unfurnished for at least a year, from 1 April 2027.
The changes would also see the introduction of a 100% premium on second homes which are substantially furnished from 1 April 2028.
The consultation will enable residents, affected property owners, partners and other stakeholders to comment while the proposals remain at an early stage, and before any final decision is taken.
After this, final recommendations will be reported to Cabinet and then, subject to any amendments, to Full Council for adoption.
Councillor Shiraz Khan, Cabinet Member for Housing, Strategic Planning and Regulatory Services, said:
By considering Council Tax charges for unoccupied and second homes, we are aiming to encourage property owners to live in or sell their empty properties.
This would help us to build a Derby to be proud of by reducing the negative impact empty homes can have on local neighbourhoods, bringing more housing to the market for people who need it, and raising additional Council Tax revenue for delivering and improving our services.
These proposed changes are in line with the new guidance introduced by the Levelling-up and Regeneration Act 2023 which states that councils can now apply the Council Tax premium for long-term empty homes after one year instead of the previous two-year requirement. The Act also allows councils to introduce a Council Tax premium on second homes.
Following the previous consultation, the proposals were considered by Cabinet but, due to an administrative oversight, the final report did not progress to Full Council for formal consideration and approval. The Council is now addressing this by taking the proposals through the full decision-making process, including consulting again to ensure all current views are considered.