Proposals to alter tax breaks for second home owners have been announced by the government.
The aim of the proposals is to reduce the amount of Council Tax everyone else pays; the plans however could have significant impact on landlords.
Currently many Town Councils offer reduced rates for second homes, between 10 and 50% when the property is empty. According to Andrew Stunell MP, with over 300,000 long term empty properties in this country, it has equated to around £90 million in lost revenue in the last 2 years alone.
The current rules mean an unoccupied unfurnished property can currently claim full Council Tax exemption for up to 6 months or 12 months if undergoing major repair work.
The new plans though will affect these current rules and could possibly leave landlords having to pay a full Council Tax bill for this period, which it is believed may put landlords off of renovating their property.
The plans are currently in the consultation stage so are likely to change before coming into effect.
There are many potential implications - for both landlords and tenants. We'll keep an eye on the development and will aim to inform you regularly on anything that would potentially affect landlords' property returns.