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Landlords may suffer double council tax during void periods

Landlords say housing standards in one of the UK’s biggest cities could sugar because of council tax changes for empty homes.

Manchester’s Labour-controlled council wants to double the level of council tax for empty properties - an idea for which a formal consultation period has just closed.

Manchester City Council has proposed increasing council tax by 4.99 per cent next financial year, taking an average Band D property up to £1,966 per year, with the new levy for empty homes in addition to this. This means landlords would be paying a bill of £327.66 extra a month during voids.

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The National Residential Landlords Association has formally objected to this in its response to the consultation, pointing out that in most locations empty property typically attracts extra council tax for void periods but only if these exceed two years. 

The association says the double charge will penalise landlords during the current challenging economic climate and could also see tenants hit with higher rents to cover landlords’ increased costs during voids.

The association says it’s not in landlords’ interests to have void periods, yet they inevitably occur between tenancies for short periods at least. The NRLA says this is likely to be the case if landlords use void periods to improve their property and, for example, add additional insulation to improve their EPC ratings.

“By penalising PRS landlords for making improvements the city council risks them carrying out only absolutely essential works, encouraging them to ditch plans for other improvements if they know they will face a financial penalty for doing so” says the association.

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    Just 'move in'.

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    Is there ever any good news on here? Talk about doom and gloom......

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    😂😂👍🏻👍🏻

     
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    This is the future for landlords Shane. Get with the programme!

     
  • John  Bentley

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    The proposal is for double from Day 1. It is just daft - it discourages LLs from doing any maintenance or upgrades and instead encourages them to put tenants in as quickly as possible.

    Not only that but the way they bill voids is daft. I always get a bill until the end of the current tax year, which I ignore until the tenant moves in and I get a revised bill for the void period. Double billing must cost money. Why not give LLs 1 month free so they can do maintenance & then bill once when the void period is known?

     
  • John  Bentley

    Meet my new tennant, Mr Joe bloggs. He'll be here until it suits me for him to leave, paying as a single person so 25% discount. Thank you.

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    Or, here is Joe blogs, after 2 months it looks like he left / abandoned the property.

    Councils will spend more time chasing people that do not exist

     
    Bill Wood

    Exactly so. If this stupid proposal goes ahead, there are ways and means .....

     
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    Plain wrong isn't it, I had a house empty for 3 months last year, not because I didn't want to rent it, I wanted time to get in there and carry out improvements, repairs and re decorate, I was there working 6 days a week through out that time and having to pay council tax , these are all costs which will be passed on

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    Just ridiculous and greedy, and they call LLs greedy! Dont they realise that tenants will pick up the bill ultimately. Plus as noted here there is no incentive to do improvements between tenants. Properties will be more expensive and worse maintained. Well done!

  • FedUp Landlordy

    Utterly illogical and just another tax grab buy thickos, do they sit there pulling these ludicrous policies out of thin air (yes), this is theft and should not be allowed!

    Our last property took 9 months to refurb; the mess/damage was extense and everywhere, running out of cash: we stopped paying the council tax, no choice, delayed payment until monies was coming in, this silly stoopid idea would have hastened another property sale, knowing 1st time buyers are non existent in our area, similar to ever dwindling landlords - meaning yet another one less rental property in the PRS, helping push up rents in a crises created by illogically policies such as this farce one.

    Really highlights and shows how there are clueless numpties absolutely everywhere!

  • George Dawes

    Just wait until they do the same for business rates

    Then the proverbial will really hit the fan

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    I get 3 months free on a vacant commercial property, odd that

     
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    Bankrupt the Landlords and the Tenants, collapse the economy great idea, there don’t seem to be much else going on.
    The Tenants haven’t got it and Energy Companies out of Control and uncontactable like many other organisations and local Authorities.

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    This is my council 😢 my next ‘ void’ will only come from eviction and the sale, I will never have another tenant.

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    #metoo Simon. I also say good riddance. This game has changed

     
    Peter  Roberts

    Same here Simon. I will never take on another tenant.

     
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    #metoo. Time to get out of Dodge.

     
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    Me too Simon... I'll NEVER take on another tenant

     
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    I'm not taking another tenant either.

     
  • Peter  Roberts

    Another good reason to get out of BTL.
    Don’t these IDIOTS realise that LLs won’t keep standing for the constant ripping off of the LLs
    I for one am selling up and putting money into other opportunities especially now that interest rates are on the up.
    The Government and Councils greed will see them with a massive issue very soon.
    Where are they going to put all the homeless families that there shortsighted policies will cause when the PRS LLs sell up?
    B&Bs and cheap hotels is the only answer and they will have to pay for all of this.
    We have propped up the Government and Councils inept house building policies, or should I say, lack of house building policies and now they are trying to get rid of us by chip chip chipping away.
    They don’t build houses, the population is constantly increasing.
    Maybe they are happy for families of homeless people to roam the streets looking for shop doorways to live in.. Because that’s what is hurtling down the road towards them.

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    I expect they will make all let or vacant property C/tax payable by the landlord.
    The Tenants can disappear at any time they choose and you can’t tell the Council its vacant or they will double the C/tax.
    Plenty way’s to damage the Landlords who are already held to ransom, did you not know we live in a Democracy.

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    Michael has a good point.

    Why bother telling the Council when tenants move out?

    Let them know that the new tenants have moved in but you don't know exactly when the old tenants actually left and you were only aware yesterday but had tenants lined up anyway.

     
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    Robert,

    Legally I think this is called abandonment. Absent tenants doesn't mean the tenancy has finished. There's a process to follow as I understand.

     
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    The other thing is when they get Permanent Periodic Tenancies at what point does it end when the Tenants decide to scarper. How long before you can go in take possession of your own property. I don’t have Deposits since they were talking away by Shelter and make a liability, even if you have a Deposit and they are minded to leave just skip a couple of payments and you can’t take any action this quickly anyway.

  • Jason Flicker

    I like it when landlords threaten to increase the rent, makes me laugh. it means their profits are being eaten up by taxes, all we need now is rent controls to squeeze them even more.

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    Why would you like that?

     
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    Well you will be doing a lot of laughing then cos your rent is def going up!!!

     
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    Is there a chip on your shoulder Jason, I wonder why .

     
  • jeremy clarke

    What I have never understood is why, a single tenant can reside and qualify for 25% discount yet a landlord is clobbered for 100% council tax when nobody is residing?
    That empty property is just that, empty and as such should attract a lower rate, if any, council tax. We are seeing landlords loathe to do basics between properties now because they get that bill within a couple of days of a tenant leaving!

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    The reason like motorists with Ulez is you are a landlord and are there to be milked.

     
    Peter  Roberts

    Totally correct Jeremy.
    Also the more LLs get shut of there properties the more tenants will be looking for the same properties.
    The rents will go mad.
    Not for me though as the properties I have will never return to the rental market.
    It’s about time these BRAINDEAD Government and Councils realise this is going to be a massive issue for them.
    We have propped up the rental sector and are getting hammered for it.
    Still, they no best. Not.

     
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    Nick Van Hoogestratwn.... DON'T WORRY, I'm with the programme... That's why I've already sold 2 properties with another 2 going on the market this month.. More to follow... 👍

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    I'm right behind you!

    Good article in the Express today. Title is:

    'Gone too far': Buy-to-let crackdown punishes landlords, tenants and first-time buyers

     
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    Jason. When there’s no place available cap or not it won’t by so funny or you have to rent a new build costing 30% more the Government is not going to cap them or at a higher level.
    Best thing is to buy your own pay through the nose for next 25 years and lay down the law to the lender, see how you get on.

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    Yeah ring Halifax when you have no hot water or some mould see how you get on

     
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    I always thought that Council tax is so unfair.
    2 people living in a property paying full c/tax while in many cases I see 4-6 or 8 residing in a property just paying the same as 2.
    The poll tax had merits but the ones that never paid all went marching and got it stopped.
    I was no big fan of Lady Tatcher but she had a point.
    I think only half should be levied on the Property and everyone make up the rest/ everyone pay something.
    They are all using the Council’s Services including having their bins emptied why should they have free rubbish disposal with their overflowing Bins.

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    There was nothing wrong with the poll tax, seemed a fair way of doing it, everyone would pay

  • Peter  Roberts

    So if you as the LL are paying the full Council Tax for a property surely you can say that you are living in the property and then the property would become Capital Tax exempt.
    Just a thought.
    I do realise that there are

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    With HMRC and the other authorities is always when it suits.

     
  • PossessionFriendUK PossessionFriend

    No prizes for guessing where there's going to be a dearth of rental properties available next, which will increase the cost ( rents ) for tenants.
    The residual impact on the Housing market, especially for tenants, will dwarf the sums that Manchester Council recover. !
    Tenants need to wake up to the consequences passed onto them by politicians.
    What hurts landlords - HURTS Tenants, or as they might say in the vernacular in Manchester, ' What goes round, comes around '

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    They're 'mad for it'!

     
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    9 MONTHS to ONE YEAR for a Possession Process
    (appears all tenants are given 5 months more, to appeal, if they ask)
    COURT SAYS IT AIMS TO OPEN AN EMAIL
    OR LETTER WITHIN 80 DAYS
    (delay increasing)
    GET OUT : BEFORE THEY REALLY START TO HURT LANDLORDS
    DON'T MOAN LATER... 'THE WRITING WASN'T ON THE WALL'

    UPDATE:
    5 MONTHS SINCE JUDGE GAVE TENANT 2 WEEKS TO SUPPLY A DEFENCE,
    HE GIVES HER ANOTHER WEEK TO PROVIDE ONE
    AND BRING US BACK TO SEPTEMBER 2022.
    COURT NEEDS 80 DAYS TO OPEN A LETTER/EMAIL
    BEEN IN NOT MUCH MORE THAN 2 YEARS BUT NOW OVER
    EQUIVALENT OF 1.5 YEARS ARREARS (20K)
    DON'T BE A LANDLORD, EVEN IF BANK GIVES BTL MORTGAGES AWAY.

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    The answer is not to complain or get out but organise. Put pressure on our landlord association to sponsor MPs to protect our and our tenant’s interests.

    Jim Haliburton
    The HMODADDY

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    Jim - cannot tell you how many times I tried - written numerous letters to
    George Freeman Mp - even provided him with mini audit of how many ex rentals went on market after details of rental reform were published.. did the same to Sam Chapman Allen head of district councils network as they will pick up the B&B bill. Complete refusal to accept the proof supplied. Only thing that will have any effect is sadly when millions are homeless and if enough of us either leave or refuse to take anyone other than gold plated tenants

     
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    Our landlord assocs seem pretty hopeless, or can't be bothered, I did stop my DDR to eastern landlords this year, and then relented and paid my subs

     
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