Empty Property Premium - on a house just purchased

pippin30

HiI have recently purchased a cottage in need of complete rennovation and in its current state is uninhabitable. I contacted the council to make them aware of the cirmcumstances when we completed the purchase (back in May) and have this week received a council tax bill applying a 50% empty property premium. Although i have only owned the property for approx 10 weeks I have been told I am still liable to pay the premium (which is applied on a property that has been empty for 2 years or more) as the charge is applied to the property not the owners...


We have also been informed, after 3 months of chasing, that the property cannot be deemed as uninhabitable as it has already had this classification applied in 2012 for the peroid 12 months, and it cannot be applied again.


Having had no control of the state of the property for the last 2 years I find it outrageous that the council can apply the premium to me. As soon as we completed we've started the renovation works with the intention of moving in as soon as possible, we have no desire to leave the cottage empty any longer than necessary.


Does anyone have any experience or advise on how to contest this with the council, as I am sure that they are incorrectly applying the charge in this circumstance.


Many thanks.

freeisgood

The councils only apply any discounts voluntarily now, as there are so many empty properties owned by non uk residents, so they figure they could get even more money off folk. And yes, we have also just refurbished a house, completely uninhabitable as no water etc for 1.5 yrs, but yes, they sting us for full council tax because they can, (the government made it optional for the councils to give any discount so now most don't). And if we dont sell it in time, we will also have to pay the empty property premium!

jjlandlord

You answered your own question: the premium may be applied if the property has been empty for at least 2 years, which apparently it has.

pippin30

Thanks for your replies. I was hoping it was wrong to apply in this situation, but obviously not. If councils want to discourage empty properties then it's crazy they penalise the people willing to take them on and bring them back to a habitable state. oh well worth a try

AdrianC

How is it "discouraging"? If you're paying CT on the place whilst empty, surely you have an incentive to make it habitable ASAP and get it back into occupation?

As for your failure to research properly before purchase, I'm not convinced that's the council's fault...

freeisgood

The councils are unfair, because paying a premium for a property when it is obviously undergoing refurbishment and it is impossible for anyone to live in, is sheer greed. If it is habitable and left empty, that is completely different.

booksurr

freeisgood wrote: »

The councils are unfair, because paying a premium for a property when it is obviously undergoing refurbishment and it is impossible for anyone to live in, is sheer greed. If it is habitable and left empty, that is completely different.

isn't it great how council services are provided without you having to pay tax to fund them

pippin30

It's the penalising new buyers who have had nothing to do with the state of the property for the past 2 years that I disagree with, not the discouraging of properties being left empty...

Yes I have been well and truly caught out, but in my defense neither council or government sites (that i can see) state that a property can only be classified as uninhabitable for a total of 12 months.


Thanks anyway

AdrianC

pippin30 wrote: »

It's the penalising new buyers who have had nothing to do with the state of the property for the past 2 years that I disagree with

It's only "penalising" if the buyer doesn't factor it into their calculations when deciding what to offer.

but in my defense neither council or government sites (that i can see) state that a property can only be classified as uninhabitable for a total of 12 months.

Councils can each set their own criteria, so there's no central Gov't site that'll tell you. What YOUR council sets and communicates will, of course, vary - but a quick google for "uninhabitable property council tax" finds at least one council doing the same as yours :-
https://www.scambs.gov.uk/content/council-tax-uninhabitable-properties

Uninhabitable properties (Exemption Class A/ Discount Class D)
You may be entitled to an exemption of up to a maximum of 12 months from the date the property became unoccupied and unfurnished providing the property is either (a) undergoing major structural alterations or is (b) in need of major repair work to render it habitable.

Exemption period and start date
The exempt period will start from the first day the property becomes empty and unfurnished.
If you are intending to purchase a property that is need of major structural alterations or major repair work, you may wish to check with us to see if an exemption has already been granted
The exemption is based on the property’s circumstances, and not the change in ownership.
If you purchase an already vacant property that is currently exempt, you will be entitled to the remainder of the exempt period.

Which council is it?

CIS

Does anyone have any experience or advise on how to contest this with the council, as I am sure that they are incorrectly applying the charge in this circumstance.

It would appear they are correct from what has been posted.

On an ongoing basis you need to take a close look at the wording of the Act which brought the premium in to being -
http://www.legislation.gov.uk/ukpga/2012/17/section/12/enacted

Section 12(8).
For the purposes of this section, a dwelling is a “long-term empty dwelling” on any day if for a continuous period of at least 2 years ending with that day—

(a)it has been unoccupied, and
(b)it has been substantially unfurnished.

pippin30

warwick district council