Rating (Property in Common Occupation) and Council Tax (Empty Dwellings) Bill

Graham P Jones Excerpts

Tuesday 16th October 2018 Commons Chamber

[Rishi Sunak]

I am not aware of the precise statistics for the Ministry of Defence, but in general we encourage all organisations and private owners to bring empty homes back into use. The Bill will apply to all homes. As far as I am aware, there is no statutory exemption for MOD housing, but I am happy to look into that and write back to the hon. Lady. As an MP who represents a constituency with a heavy military presence, with Catterick garrison on my patch, I know well the issues relating to serving personnel and their families having access to good-quality accommodation. I hope that there are few empty homes in my area and that they are all being well utilised. I thank the hon. Lady for bringing that issue to my attention.

It cannot be right that while many households are waiting to find a house to call home, thousands of properties stand empty, some for many years. Beyond that, homes left empty for the long term can often be a blight on a neighbourhood, as well as sites of crime and antisocial behaviour. I am pleased to say that the Government’s record in this policy area is strong. We have ensured that local authorities have powers and strong incentives to bring empty homes back into use.

[Graham P. Jones (Hyndburn) (Lab)]

The Minister says that he is empowering local authorities, but the Government refuse to have a register of landlords. An enormous amount of paperwork is required for local authorities to chase landlords and get these backyards into use, or whatever the problem is that he says his Government are happy to see resolved. Will the Government help local authorities, as he suggests, and introduce a national register of landlords so that we can take the action that he describes?

[Rishi Sunak]

I will be careful not to stray too far from my brief, but the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for South Derbyshire (Mrs Wheeler), who has responsibility for housing and homelessness, is actively looking into appropriate regulation in the private rented sector and the potential introduction of a single housing ombudsman, among other things. I should point out that the Government introduced measures to tackle rogue landlords and, indeed, created a rogue landlord database and a new set of penalties to tackle the issue. I hope that the hon. Gentleman finds some comfort in that and will wait for my colleague’s findings on the general regulation of the private rented sector.

Before 2013, councils could not collect any council tax from properties that were empty for up to six months, so the coalition Government at the time decided to support councils and ensure that they had the freedom, should they want it, to charge the full rate of council tax on such properties. That same year, the Government enabled local authorities to charge a council tax premium of up to 50% on long-term empty homes.

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[Rishi Sunak]

As ever, my hon. Friend makes an insightful point. He has great experience in this area. Indeed, he has published proposals relating specifically to this area, on which my hon. Friend the Housing Minister is engaging with him. More intelligent use of development rights and our existing stock can help play a part in solving the housing market problems that we see.

[Graham P. Jones]

I am interested in what the Minister says, and do not disagree with it, but I will say the same thing that I said when this legislation came around last time. It is great to talk about Bolton, a unitary authority, and Kent may have a progressive county council—I do not know—but my local district, Accrington District Council, only receives 15% of the precept with 72% going to the shire authority which, unlike Bolton, is not interested in reinvesting. When will we have a change in the law that allows district authorities to retain 100% of the extra precept on the council tax?

[Rishi Sunak]

Opening up a conversation about the redistribution of council tax is probably beyond the scope of this measure, but we encourage co-operation between local authorities, and there are good examples of that from across the country. Indeed, business rates retention is now working deliberately to incentivise local authorities across tiers to partner together, and we have found that that has unlocked conversations beyond the pooling of business rates to strategic co-operation on other matters, such as housing.

[Graham P. Jones]

Will the Minister come to Lancashire to encourage Lancashire County Council to give money back to Hyndburn and Chorley?

[Rishi Sunak]

I am always happy to visit all local authorities, and many of the authorities in Lancashire have submitted proposals to be in the upcoming 75% business rates retention pilots. I am pleased to see lots of local authorities in Lancashire working together, and I look forward to reading that application with interest in the light of those comments.

As we have seen, different areas, from Redditch to Lancashire, will have different housing needs and different numbers of long-term-empty homes, so it is absolutely right that decisions on whether to apply a premium, and the exact rate to charge, should be taken at local level, as they were before. Councils are acutely aware of the needs and demands of their areas. We recognise that local authorities will want to reflect carefully on the local housing market when deciding whether to issue a determination—for example, where a homeowner is struggling to rent or sell a property in a challenging market. We are clear that the premium should not be used to penalise owners of homes that are genuinely on the market for rent or sale.