URL: https://democracy.middevon.gov.uk/ieDecisionDetails.aspx?ID=1384

Decision Maker: Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: The Cabinet had before it a report * from the Deputy Chief Executive (S151) presenting the Empty Homes and Second Homes Premium Policy 2026/27.   The Cabinet Member for Governance, Finance and Risk outlined the contents of the report with particular reference to the following:   This report updated Members on the Council’s approach to tackling the impact of empty and second homes across the Council. In recent years, Cabinet and Full Council had taken a clear position that second homes would place pressure on local housing supply, affect the sustainability of local services, and reduce the availability of homes for permanent residents. The Council had already agreed to levy a 100% Council Tax premium on second homes from April 2025, with the additional income ring?fenced to support housing initiatives, including the acquisition of additional accommodation and targeted support for residents with complex needs, care leavers, and young people at risk of homelessness. The report also recommended maintaining the 100% second homes premium for 2027/28, noting that there was no evidence of hardship or negative community impact arising from the premium to date. In summary, this would continue to support the Council’s strategic aims around housing supply, community sustainability and the fair use of local resources, while ensuring compliance with national legislation and statutory guidance.   Discussion took place with regards to:   In percentage comparison where was this Council compared with other local authorities? It was explained that the maximum percentage increase that legislation allowed was 100% and other local authorities within Devon had applied the 100% premium. Whether there had been any local interpretation of the rules or had a standard approach been applied consistently across all authorities? It was explained that Section 11C of the Local Government Finance Act gave the Council discretion to remove the premium in individual cases where circumstances were made known. However, the policy was generally applied to all second homes and the Council had achieved a 92% collection rate, with most second homeowners simply paying the charge. Whether there had been any evidence of behaviour change resulting from the premium, specifically whether it had encouraged more properties to become available for rent and increased housing stock? It was explained that those with second homes paid the premium.   RESOLVED that:   The continuation of the 100% premium for second homes for 2026/27 be NOTED. Cabinet recommends to Full Council that the Council Tax Empty Homes & Second Homes Premium Policy 2026/27 be ADOPTED. Delegated Authority be given to the Head of Revenues, Benefits & Leisure to make necessary technical and non-substantive amendments to the policy, only to ensure compliance with statutory requirements. Cabinet recommends to Full Council that there should be no variation to the current determination of 100% second home premium from 2027/28 be APPROVED.   (Proposed by Cllr J Downes and seconded by Cllr G DuChesne)   Reason for Decision: Sections 79 and 80 of the Levelling-Up and Regeneration Act 2023 made amendments to the Local Government Finance Act 1992, to empower councils to apply the additional premiums.   Note: * Report previously circulated.      

Date of Decision: March 3, 2026