MO issues section 5 report on empty homes and second homes council tax premium

The s.5 report has been issued after the council received a letter further to a decision by Warwick District Council in December 2025 in relation to its second homes council tax premium.

Warwick’s Monitoring Officer, Graham Leach, found that the charge had not been correctly approved by the council, therefore the charge on properties was incorrectly applied.

The district council accepted his advice and agreed to take remedial action.

The letter to Nuneaton and Bedworth drew parallels to Warwick and requested a review of the council’s position.

In the s.5 report to Nuneaton and Bedworth, Monitoring Officer Matthew Wallbank revealed that the council’s Cabinet resolved in October 2024 to introduce various council tax premiums on long-term empty dwellings from April 2025 and on second homes from April 2026.

The reasons why Wallbank issued the report were outlined as follows:

1. The additional levies were approved only at Cabinet, not full council where the decision should have been referred to and made. Whilst the Cabinet report to full council on December 11th 2024 (agenda item 9) included the decision made by Cabinet, the content of the report and report itself was not subject to a full council vote or decision;
2. Following release of statutory guidance which the council must have regard to (dated 1 November 2024), the council should have reconsidered its position to align with the guidance and reported that accordingly given the guidance was issued after the decision made by Cabinet (9 October 2024);
3. The report itself, in the view of the Monitoring Officer, “did not contain sufficient detail in terms of the full implications associated with the decision and thus could have provided further analysis and options for consideration. For the avoidance of doubt, this isn’t to say the analysis hadn’t been done and/or implications considered, but the decision makers had no other option to consider or the full analysis available in the report”; and
4. The council had published a Council Tax Empty Homes Premium Policy 2025-26 “but there is no evidence that Cabinet or Full Council formally approved the document on 9 October 2024 or 11 December 2024”.

External legal advice was sought on the council’s position following the letter.

The s.5 report noted that the second homes premium, valued at more than £432,000, has not yet been charged and therefore requires no refunds.

However, the empty homes premium, valued at £258,963 per annum, would require refunding based on the legal advice. “In addition, there is £214,684 (143 accounts) in premiums charged that require further review as they will still be subject to a premium when reverting back to the former scheme. These will not be refundable in full.”

The report recommends Nuneaton and Bedworth’s full council:

1. Withdraw the Second Home Council Tax Premium;
2. Withdraw the additional levies associated to the Empty Property Premium introduced from 01/04/2025 with immediate effect and revert to the 2021 levy;
3. Refund any payments made by individuals under those charges;
4. Notify preceptors, where relevant, for whom the council collects these premiums as the billing authority; and
5. Recommence the process of introducing the Second Homes Council Tax Premium and Empty Property Premium in full accordance with statutory guidance, subject to a future Cabinet and Full Council report.

The report says full council will “need to ascertain and decide whether it wishes to agree with the view of the Monitoring Officer based on the position and advice”.