The NLA published a statement yesterday with their response to the latest Government plans to overhaul the way empty properties are subject to Council Tax. As all landlords know, under the current rules, if you have an empty property, you are still liable for Council tax, so even if the property is empty for the purposes of improvements, you still have to pay tax on it.
At present, the Government is considering changing the rules so that local Councils have the flexibility to give landlords and other property owners tax relief on empty properties or second homes.
The NLA believes this is a good thing, as it will help landlords to use the savings they make to fund repairs, maintenance programs and other property improvements, including essential “green” initiatives.
Personally I think this is an excellent idea and it would definitely help smaller landlords to keep their properties in tip-top condition. As things stand, there is no real incentive for landlords to deliberately keep a property empty in order to carry out essential improvements or repairs, but if landlords are given tax relief on their empty properties, the money saved should help to reduce the number of sub-standard rental properties on the market.
And as the NLA says: “At a time of severe housing shortage, it is imperative that empty homes are brought back into use, but it should not be at the expense of improvements which would otherwise be possible within the private-rented sector.
“Landlords are always keen to ensure that their properties are tenanted, but they must not be penalised during periods that allow them to maintain, repair and improve their properties.”
