The government are looking to address the ongoing ‘issue’ of rates not being paid on empty properties.
A motion was put forward to Tynwald in June 2023 by MHK for Arbory, Castletown and Malew Jason Moorhouse, which aimed to ‘make the option of abandoned property financially less attractive’.
Talking about the issue, Mr Moorhouse explained: ‘If you own a house in the island you will receive a rate bill each year and some will be substantial. If the property is empty then some owners will remove basic facilities such as the toilets and then claim it’s uninhabitable.
‘At the extreme, properties occasionally fall into disrepair and rather than still having to pay a rates bill they will apply to be zero rated.
‘This effectively means that in addition to the buildings having a negative impact on the area, the owners will no longer will be contributing financially to the local authority.’
Mr Moorhouse, who has identified vacancies in Castletown such as the former Ship Inn pub and a property on Parade Street, asked Treasury Minister Dr Alex Allinson what progress had been made towards the implementation of a resolution during Tuesday’s House of Keys sitting.
Dr Allinson confirmed that Government have been ‘undertaking research’ with regards to empty properties over the last 18 months, and have looked to progress ‘potential actions’.
Going into more detail, Dr Allinson said: ‘This has included the Housing Communities Board defining and quantifying a number of issues relating to housing availability and provision, spanning across residential, commercial and business domains.
‘The Built Environment Reform Programme has also been focusing on commercial and residential development areas, whilst exploring how current aspects of the planning process can be improved to support positive development moving forward.’
Following the motion in June 2023, all local authorities were asked to contribute to a consultation which ended in April this year.
Out of 17 broad proposals, the consultation saw eight of these considered as most favourable by the local authorities.
These eight proposals included resolutions such as ‘rates exemption removals to discourage vacant properties, Treasury grants and further resources to local authorities to support enforcement actions to tackle all empty problem properties’.
The consultation led to a significant step forward, with the Council of Ministers considering the favoured proposals before agreeing on ‘progressing rates exemption removals’.
Dr Allinson added: ‘To discourage vacant properties, amendments will have to be made to the Rating and Valuations Act 1953.
‘Treasury officers are progressing this with the Attorney General's Chambers as we speak in order to consider and agree the best legislative approach and timeline for introduction.
‘I hope this will help to improve the social and economic benefit to our island and residents by helping to minimise the issues associated with empty and problem properties.’