Decision

RESOLVED that the Council be recommended to approve
the change
to the empty homes premium, so that properties which have been
unoccupied and unfurnished for one year, instead of two, will
become subject to the 100% premium from 1 April
2026.
 
 
Reasons for the
decision
 
On the 19th of November 2024 Hampshire County
Council wrote to Local Councils (appendix A) asking that for
financial reasons, we consider introducing both and empty homes
premium and a second homes premium in 2026/27. The majority of
Hampshire Districts and Boroughs have or are about to introduce the
Empty Homes Premium (100% Premium after one year) and Second Homes
Premium. (100% Premium).
 
Should the
recommendations in the report be agreed by Cabinet, for onward
recommendation to Council, this would bring EHDC in line with other
Hampshire Authorities who have or are about to introduce the Empty
Homes Premium and Second Homes Premium.
 
The Cabinet did not
agree to recommend that the Council implements the 100% second
homes premium from 1 April 2026, due to the potential impact on
investment in the district.
 
Alternative Options
considered
 
Option 1- The Council could opt not to levy
the empty homes premium when a property has been empty for between
one and two years or to levy the second homes premium. This would
result in a loss of income and would not be in-line with other
Hampshire Councils.
 
Option 2 – The preferred recommendation
which will bring us in line with other Authorities within Hampshire
and will potentially generate additional income for EHDC as shown
in the table below.
 
Change the Empty Homes Premium so that
properties which have been unoccupied and unfurnished for one year,
instead of two, will become subject to the 100% premium from April
2026.
 
And approve the implementation of the 100%
Second Homes Premium from April  
2026. 
 
From a funding perspective, based on 2024/25
Band D average, these would potentially generate the
following.
 

Option

EHDC

HCC

Police & Crime

Fire & Rescue

2nd Home

£65,526

£683,825

£116,611

£36,947

Empty Home*

£69,934

£729,823

£124,455

£39,432

Total

£135,460

£1,413,647

£241,066

£76,379

 
*Assumes all are
over 6 months, further analysis would be required to confirm how
many properties are 6 to 12 months and therefore exempt.
 
This decision is
reserved to the Council and is therefore not subject to call
in.