The CEO of a Sheffield homelessness charity has said he doesn’t think new council plans to tax empty or secondary homes will adequately tackle the city’s homelessness problem.
A recent proposal to double council tax on some empty or second homes could lead to a reduction of homelessness as the council hopes to bring homes “back into use”.
The chief executive officer of The Archer Project – a Sheffield homelessness charity – Tim Renshaw, said: The current lack of housing is due to decades of below-target housebuilding and, in particular, the decreasing stock of social housing.
“I’m not convinced that releasing these homes into the housing market will create a supply for homeless people, given the existing demand from people on higher incomes to enter the housing market as things stand.”
The council has been granted the power to apply a “Long-Term Empty Premium” (LTEP) on to a property that is unoccupied and “substantially unfurnished” for one year – as opposed to two years as it currently stands.
It has also been given the power to apply a premium on second homes of up to 100% of the council tax charge.
Councillor Douglas Johnson, Chief of the Housing Committee, said: “We have a shortage of affordable housing so we also want to bring as many empty private-sector homes as possible back into use.
“The council already charges increased council tax on properties that have been empty for more than two years – which increases after five years and again after 10 years. This is to encourage owners to have their properties occupied.”
Although Mr Renshaw said he feels deterring people from owning second homes is not enough to improve homelessness figures in the city: “Affording a home even in a market where fiscal policy is used to deter second homes remains out of the reach of many.”
The scheme is set to bring in an additional £1.1 million in the first year – there has not yet been any suggestions on how this money will be spent.
The council could introduce the LTEP as early as April 2024, however the second home premium would not be introduced until next year.
