New premiums on second and long-term empty homes could come into effect if councillors agree recommendations at the Strategy, Finance and Regeneration Committee on 25 January.
A report going to the committee outlines how councils can apply a premium on second homes and long-term empty properties.
This means councils are able to raise additional revenue in recognition of the impact that second and empty homes can have on communities and housing supply.
In the case of empty properties, this premium could also incentivise property owners to bring properties back into use.
Initial analysis indicates that a 100% premium on second homes could increase Council Tax income by around £2.9 million from 2025/26 onward.
The empty homes premium could bring another half a million a year, providing additional revenue for the council to enable it to continue to provide day-to-day services while meeting the growing cost and demand for essential services such as social care and homelessness.
The report recommends that Full Council agrees a new 100% Council Tax premium be applied to empty furnished properties (second homes) from 1 April 2025. This is the earliest date that such a premium can be applied.
It also recommends the current 100% premium applicable to long-term empty and unfurnished properties will be applied after one year rather than 2 from 1 April 2024.
Councillor Bella Sankey, Leader of the Council and chair of the Strategy, Finance and City Regeneration Committee, said: “I’m very pleased to be bringing forward this proposal.
“It will incentivise those who own empty homes in Brighton & Hove to bring them back into use, as well as helping us raise additional income to help address housing supply in the city.
“In a city with immense housing challenges, incentives to bring homes back into use for local residents is something I strongly welcome.
“It’s also no secret that local government finance across the country is under strain like never before and we face the toughest budget setting period in council history.
“The funding we get from the government is not keeping pace with inflation and growing demand for council services.
“The additional revenue that could be raised is crucial to help continue providing vital city services.”
