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

Lord Shipley Excerpts

Report stage (Hansard): House of Lords
Wednesday 4th July 2018 Lords Chamber

Moved by

[Lord Shipley]

1: Clause 2, page 2, line 33, leave out subsection (1) and insert—
“(1) Section 11B of the LGFA 1992 (higher amount for long-term empty dwellings: England) is amended as follows.(1A) In subsection (1)(b) (maximum percentage by which council tax may be increased), leave out “of not more than 50” and insert “as specified in subsection (1A)”. (1B) After subsection (1), insert—“(1A) If a dwelling has been empty for—(a) between two years and five years, the percentage is not more than 100;(b) between five years and ten years, the percentage is not more than 200;(c) more than ten years, the percentage is not more than 300.””

[Lord Shipley (LD)]

My Lords, I thank the Minister for a very constructive discussion in recent days about the second part of the Bill and the proposed escalator, and for the helpful discussion and explanation that we have had on the first part, about the staircase tax. I am very grateful for the Minister’s letter sent earlier this week, which explains the issues that have to be addressed with valuation lists going back a number of years.

We proposed the escalator in Committee, and the conclusion reached here after all-party discussion has been extremely productive. Broadly speaking, a dwelling that has been empty for between two and five years can attract a 100% increase if a local authority decides it wishes to do so. Between five and 10 years of that property being empty, the percentage could, at local authority discretion, increase to 200%. After being empty for more than 10 years, the percentage could increase to 300%. I welcome the Government’s agreement to those figures.

Of course, there is a view, to which I subscribe, that the penalty could well be higher if those who live overseas buy properties to leave empty as investments. That is a particular problem in London. Clearly this amendment will help, but it does not solve the entire problem because to get to 300% requires 10 years to pass. I hope that the Minister will do what we discussed in Committee, which is to review this legislation very carefully over the next two to three years. We may well find that there is a gradual decrease in the number of long-term empty properties, but that the decrease is not as great as we would like it to be. There is a case for a penalty of 500% for those who have deliberately invested in property to leave it empty. There is a world of difference between that and properties which are empty for two years because of delays in probate, family disagreements or other reasons. Local authorities now have the power to do something about it, and as long as the Government are going to keep closely under review whether the figures of 100%, 200% and 300% are working effectively, we are content with outcome that the Minister has agreed with us. I beg to move.

[Lord Stunell (LD)]

My Lords, Amendment 2 in this group is similar to the amendment I moved in Committee, but it is not exactly the same. I draw noble Lords’ attention to the general background to this proposal. There are 20 million homes in England and they are responsible for more than 30% of the country’s carbon emissions. We have the worst housing stock in Europe as far as energy efficiency is concerned. Measures are in hand to improve the stock of new homes, but with 200,000 new homes a year it will take 100 years to replace the housing stock we have at the moment. At 300,000 homes a year, it will take only 66 years. Of course, both those dates are well past 2050, the date by which the Government have undertaken that there will be a substantial carbon reduction, but that can be achieved only if the energy performance of the housing stock is improved. Improving the energy performance of the existing housing stock is clearly essential. It is obviously an important government priority, and my amendment assists them in reaching that target.

By far the best time to improve the energy performance of any building is when it is not occupied. An empty home, which by definition is not occupied, is exactly the right place for energy improvements to take place. Whether the home is for sale or rent, then is the moment to strike. The Government have introduced proposals to make sure that rented accommodation achieves certain minimum standards of energy performance. However, for every step forward on energy improvements for homes, the Government have taken some steps back. Zero-carbon homes—a clear commitment of the coalition Government—have been abandoned, the Green Deal is no more and my Question to the Government about the application of the energy performance directive has been responded to in a very bland and potentially problematic way. The noble Lord, Lord Bourne of Aberystwyth, responded last week:

“The outcome of negotiations with the European Union … will determine what detailed arrangements apply in relation to EU legislation, including the Energy Performance of Buildings Directive, in future once the UK has left the EU”.


That left one reader of that response completely baffled. He said that,

“it seems to suggest that we can at present have no certainty about what if any directives will apply in eight months’ time. Can this be right?”.

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[Lord Shipley]

My Lords, I was reminded by the noble Earl, Lord Lytton, and my noble friend Lady Pinnock that I did not declare when I spoke earlier that I am a vice-president of the LGA. For the completeness of the record, I do so now.

[Lord Beecham (Lab)]

My Lords, I will further add to that by declaring my own interests as a vice-president of the association, and also as a serving councillor in Newcastle. I rise to present the views of these Benches in the absence of my noble friend Lord Kennedy, who is en route to Birmingham for the Local Government Association conference.

I have had some experience of dealing with, or attempting to deal with, the problems of empty houses in the ward I represent in Newcastle. It has been impossible, eventually, either to persuade the owners to do the necessary work or, in one case, to acquire the property. While I certainly support the amendments before us, and I understand that they are likely to receive a reasonably warm response from the Minister, it occurs to me that perhaps the aspect of acquiring properties is a matter that should be given further consideration. It is an alternative approach that might well result in a quicker resolution of the problem, and enable the availability of a usable home, than simply collecting money by way of an incentive, as it were, for owners to do something, which may not be all that effective. I would be grateful if the Minister would indicate whether the Government will look again at the powers of local authorities to acquire in these circumstances, and whether these need to be enhanced, particularly in terms of the timescale involved. On the ground, it would probably make a greater difference than these measures, welcome though they are as an additional arm in trying to deal with this situation, which is, at a time of housing shortage, really quite disgraceful and should not be tolerated.

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[Lord Bourne of Aberystwyth]

My Lords, I had not anticipated that the noble Lord would go in that direction—more widely than the debate. I hope he will accept that I will pick up that point and try to get an expeditious response to him, but I cannot give him any assurance beyond the fact that it is something that we realise is due. I will write to him and copy the letter to other noble Lords.

[Lord Shipley]

My Lords, I thank the Minister very much for what he has said and beg leave to withdraw the amendment.

Amendment 1 withdrawn.