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Home Owners Face Up To 300% Council Tax Hike

Published by Prerana
Posted Date: May 24, 2024 , Modified Date: May 24, 2024

Liverpool, one of the major cities in the UK, is in the midst of a paradoxical residential crisis. There are currently more than 8,000 empty homes here, yet people are not able to find accommodation. This has left many homeless. So, to tackle this problem, the Liverpool City Council is increasing the council tax for owners who are letting their homes remain empty.

Why Is Liverpool Facing a Residential Crisis?

Liverpool is not the only city facing this housing crisis. In fact, the whole country is grappling with it. The homelessness rate jumped to 16% in April of this year, with approximately 45,000 families recorded homeless in the three months to December of last year.

Council Tax Hike For Empty Houses

One of the key causes of this residential crisis is the popularity of temporary accommodations such as Furnished Holiday Lettings (FHL). FHL provides impressive tax benefits to landlords, which is why many are opting to provide temporary serviced accommodation. Due to this, people seeking permanent homes are left homeless or hopping from one temporary accommodation to another.

How Is Liverpool Navigating the Crisis?

If the owner uses their property for commercial purposes, they must pay a certain percentage as council tax. To tackle the residential crisis in Liverpool, the Liverpool City Council has decided to increase the council tax. The council is increasing the council tax up to 100% for properties which were empty for at least a year. People must pay an additional percentage of tax according to the time their properties have been empty.

Council Tax Rate Increase

Time Period

100%

Over a year

200%

Five years

300%

Ten years or more

According to the current situation, it is projected that the city council will generate £330,000 from council tax in the Tax Year 2025/26. The deputy leader of the city council says that reducing the number of empty properties will reduce homelessness, enhance pride, and reduce crime and vandalism. This could increase trade for local shops and businesses.

Also, the abolition of Furnished Holiday Let (FHL) in April 2025 could potentially help improve this residential crisis.

Conclusion

Various major cities in the UK are facing a residential crisis, including the city of Liverpool. The major suspect of this residential crisis is the popularity of temporary accommodation schemes like FHL. So, to help with this crisis, the Liverpool City Council is increasing the council tax for landlords by up to 300%. This step can potentially help homeless residents find homes and accommodation and tackle the residential crisis.

Prerana
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