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

Layla Moran Excerpts

Tuesday 16th October 2018 Commons Chamber

[Layla Moran (Oxford West and Abingdon) (LD)]

Does the Minister agree that in addition to all the measures in the Bill, the Government must get their own house in order? Some 10,000 Ministry of Defence homes are left empty; does he not think it is slightly ironic that we are discussing this issue when the Government have so many homes that are not being put to use?

[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.

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[Layla Moran]

I thank the Minister for paying tribute to my colleagues in the House of Lords who led on this amendment. Does he agree that another issue is land banking? It is all very well if homes are being brought back into use, but we also have an issue of land that is often kept for a very long time. What does he intend to do about that?

[Rishi Sunak]

I agree that land banking should be looked into. The hon. Lady will be aware that my hon. Friend the Member for North Dorset (Simon Hoare) is currently looking at that issue. Interim findings have been published and more findings will be coming out shortly. I hope that she will be happy to wait for the findings of those reports.

Nor are we proposing to change any other arrangements for charging premiums. It will rightly remain a matter for local authorities individually to decide whether and what premium to charge. In making these decisions, local authorities should of course consider local circumstances, as we have discussed, as well as the guidance issued by the Government.

It is right that we target particularly the homes that are empty for excessively long periods in this way. To be sure, they are likely to be few in number— potentially 11,000, as we heard from my hon. Friend the Member for Walsall North (Eddie Hughes)—but where they exist, they can indeed be a nuisance and a blight on their community. Such properties may even become sites of crime and antisocial behaviour. It is right that local authorities are equipped with greater powers in these difficult cases, where a 100% premium may be ineffective. We are proposing that these higher premiums come into effect slightly later than the original measure, which was announced at last year’s autumn Budget. This will give homeowners sufficient notice of the change. The 200% premiums will come into effect from 1 April 2020, and the 300% premiums a year later. The original proposal, of which people have had good notice, will come into effect from 1 April 2019, as planned.

We recognise the crucial importance of ensuring that premiums are applied fairly. That is why in 2013 the Government published guidance reminding local authorities to take into account the specific reasons a local property is empty, as indeed we heard from my hon. Friend the Member for Harrow East (Bob Blackman). In the light of this amendment, I can confirm that the Government will take a fresh look at the guidance with the aim of publishing revised guidance ahead of the introduction of the 200% and 300% premiums. This refreshed guidance will be subject to consultation, of course, and we will welcome the opportunity to benefit from the experience of local authorities, council tax payers and others when the time comes. In particular, we are keen to ensure that the guidance clarifies that premiums must be applied with due consideration to issues facing low-demand areas and cases of hardship. We expect to revisit the wording of the guidance to set out clearly the Government’s expectation that premiums are not applied where homeowners can demonstrate that their properties are genuinely on the market for rent or sale and appropriately priced.

Another area we expect to consider is cases where homeowners, as my hon. Friend the Member for Harrow East noted, are struggling to complete or afford renovations that are necessary before the property can be occupied or sold on and where they can demonstrate progress and hardship.

I am delighted to bring forward this amendment, which has been termed the escalator amendment. I am grateful to all colleagues, the Select Committee and partners in the rating agencies for helping to get this amendment and this Bill to the House. By strengthening the incentive for owners of long-term empty properties to bring them back into use, this amendment will surely come as good news for local government, for families seeking a place to live and for the affected local communities as a whole. I commend it to the House.