Worcester City Council is considering a new measure to encourage the return of long-term empty properties to the housing market by imposing a council tax surcharge. Under legislation updated by the Levelling Up and Regeneration Act 2023, councils can now charge a premium on homes that have been unoccupied for at least 12 months, down from the previous two-year threshold.
Currently, around 200 Band D properties in Worcester have stood empty for more than a year but less than two, making them potential candidates for the proposed tax. The council views the premium not only as a way to generate extra revenue but also as a tool to increase the limited housing supply in the city.
At present, homes vacant between two and five years are subject to a 100% premium on council tax, which escalates to 200% for properties empty 5-10 years, and 300% for those unoccupied over a decade.
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Housing officials estimate that applying the Long Term Empty Homes Premium to properties empty over a year could raise an additional £445,000 in council tax, with £44,000 allocated to Worcester City Council itself. The majority of council tax is distributed to Worcestershire County Council (72%), West Mercia Police (13%), and Hereford and Worcester Fire and Rescue Authority (5%).
The policy and resources committee will debate this proposal at its meeting on 18 November. However, any decision requires approval from the full council, which will meet the following week.
Though local authorities have powers such as compulsory purchase orders to address long-term vacancies, managing empty homes is not a statutory duty and often demands significant resources, a challenge Worcester City Council has acknowledged in the past.