Should empty homes be taxed?

Should empty homes be taxed?

10:22 AM, 20th October 2022, About 2 years ago 13

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Hi everyone, Would it not be a good idea to tax properties that are left empty and disincentivise them from remaining outside the available housing stock?

A residential property, in my opinion, should not be used purely as an investment as it should be used firstly as a home while the housing crisis is at such a peak.

Unlike the owner-occupiers, landlords provide homes that provide large tax incomes for the government which if used to build affordable housing would then help towards repairing the at best tarnished image of the landlord.

Should this not be government policy as opposed to punishing home-providing landlords?

Jos


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Paul Essex

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12:54 PM, 20th October 2022, About 2 years ago

I don't know where you live but most councils already tax empty properties. Here I get just one week off for uninhabited, then it goes to full rate (not even the one person rate). Other councils have given themselves to charge double or triple for long term empty.

Reluctant Landlord

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14:14 PM, 20th October 2022, About 2 years ago

not if I'm being told that there may be a 6 month rent freeze and eviction ban coming!

Reluctant Landlord

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14:17 PM, 20th October 2022, About 2 years ago

at the end of the day you are talking about giving the landlord help/assistance - that's how its seen.

That is NOT in even in the local council or governments vision.

You will be dammed and tax if you leave empty and you will be dammed and taxed if you don't. It also means you then will have to house people to do that. People we can't house.

Problem? What problem.....

Freda Blogs

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15:56 PM, 20th October 2022, About 2 years ago

"Unlike the owner-occupiers, landlords provide homes that provide large tax incomes for the government which if used to build affordable housing would then help towards repairing the at best tarnished image of the landlord."

1. As others have said, Landlords are taxed significantly on vacant property via Council Tax, yet are not occupiers, who are the true consumers of the services that are provided by Councils;

2. We are taxed with standard stamp duty plus an additional stamp duty levy on purchases;

3. We are taxed via CGT on disposal (no longer any taper relief to enable tax planning);

4. Through S24 we are discriminated against as the only business in the country that cannot recover all business expenses (mortgage interest tax relief), so many landlords are effectively taxed on turnover, not profit;

5. We pay income tax and/or corporation tax on letting income;

6. We have lost the fair wear and tear allowance previously claimable;

7. We will be required to make further expenditure regarding EPC improvements, for which tenants reap the benefits through reduced energy costs. The same requirement is not made of owner occupiers or social landlords;

8. We are the only business that (in Scotland) are no longer able to raise rents to meet costs of living or market rises;

9. I am sure I have missed other taxes and charges – no doubt others will chip in.

What more do you want from us?

As it is, many landlords are selling because of the above, together with pending punitive and discriminatory legislation. Bring in your suggestion and the race for the door will get even faster than it is now.

The property belongs to the landlord, full stop. The current lottery around recovering possession of a property following a letting is increasingly uncertain due to the new legislation. If landlords have an empty property whilst they consider their options until the situation becomes clearer, that is their prerogative. We are already paying above and beyond for the privilege.

Duffy

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2:53 AM, 21st October 2022, About 2 years ago

A property owner already pays increased council tax for an empty property

Susan Robinson

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10:54 AM, 21st October 2022, About 2 years ago

Reply to the comment left by Freda Blogs at 20/10/2022 - 15:56
Well said Freda !

aydin

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11:29 AM, 21st October 2022, About 2 years ago

In most London Boroughs where I have properties, I pay C Tax even for one day void

Dylan Morris

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11:33 AM, 21st October 2022, About 2 years ago

And under the Rent Reform white paper landlords will have to go to Court to grovel to a Judge on beaded knee to ask for permission to sell their property.

Ann Shaw

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12:17 PM, 21st October 2022, About 2 years ago

Excellent retort Freda - Well said!!!

Windsor Woman

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13:33 PM, 21st October 2022, About 2 years ago

I have in the past had to pay DOUBLE council tax for a period of time whilst a property was vacant due to issues beyond my control. That charge is in no way fair or reasonable or has any bearing on the services being provided by councils. In my view that’s just profiteering dressed up as an attempt by councils to discourage having empty properties - There was an Empty Homes Officer whose job it was to encourage homes back into use - who offered no interest or help whatsoever.
Furthermore, as the OP suggests, why should landlords have to try and improve their image, one that has been so badly tarnished on a foundation of lies and misinformation? The majority of us know that we provide good quality homes and are sorely needed, but media and government don’t want to acknowledge the facts or truth of the matter. Shouldn’t that be enough? We are scapegoated for government failings.

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