Empty homes to be rated from October 2011

Finance Minister, Sammy Wilson, has announced that empty homes will be liable to the same rates as occupied homes from 1 October 2011.

This change, which could raise £10million revenue a year, has full Executive, DFP Committee and cross party support in the Assembly.

Speaking about the decision, the Minister said: “Last year I postponed this measure because the housing market was in the doldrums. There are signs, however, that it is beginning to move again with more sales and lettings taking place.

“I appreciate that those that own empty homes will be facing bills for the first time, and I am keen to give them plenty of time to either prepare for the new charge or get the home in question occupied. For that reason I am not introducing it until late next year. This effectively means that those people who are still holding longer terms empty homes next year will only pay for half of the rating year. This will help ease in this measure.”

This measure will ensure, as far as possible, that properties do not sit vacant unnecessarily and will help open up some opportunities for people looking for affordable housing.

Mr Wilson also advised: “I am keen to avoid adversely impacting on the building industry here, which is experiencing tough times, particularly for those involved in speculative house building. I do not wish to add to their difficulties so will protect them by providing an initial exemption period for their unsold stock. For unsold houses already built and those that are completed in the next financial year, I am providing an 18 month initial exemption. In subsequent years it will be 12 months.

The Minister concluded: “While some will be concerned about new charges, this measure has been in the pipeline for a number of years. Importantly, the £10million per year that could be raised from this measure will provide additional resources for key public services. It should also not be forgotten that empty homes demand public services too – roads, police and fire services, public health and so on. I believe it is right that those holding empty homes should contribute towards the public purse, reducing the burden on other ratepayers, as well as encouraging homes to be lived in.”

Notes to editors:

1. All media inquiries should be directed to DFP Press Office (Telephone: 028 9052 7374; Fax: 028 9052 7149). Out of office hours please contact the duty press officer via pager number 076 9971 5440 and your call will be returned.
2. The Executive first announced its decision to introduce the rating of empty homes in 2007. Consultation on the detailed policy measure was undertaken between May and August 2008 and the way forward subsequently set out in a consultation report in 2009. Further details on the consultation paper and subsequent consultation report can be found on the Rating Review website.
3. The Minister took the decision last September that the rating of empty homes at 100% would not be introduced in April 2010, being postponed until 2011 with the situation to be kept under review.
4. As set out in the 2009 consultation report certain empty homes will be excluded from rates, including where occupation is legally prohibited or by government action, where a person is receiving care, the property is empty due to imprisonment or the owner’s death (probate) and for properties that have a capital value of below £20,000. Homes that are beyond reasonable repair and are uninhabitable will not be liable for rates.