A number of solutions to the ‘empty property problem’ throughout the island have been identified by the Isle of Man Government.
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 [an] abandoned property financially less attractive’.
Speaking 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.’
In response to a recent written question from MHK for Onchan, Rob Callister, chair of the Housing and Communities Board (H&CH), David Ashford, said: ‘As a first step at dealing with empty and dilapidated properties around the island, the H&CB considered the need for an empty properties officer to be employed by Government in early 2023.
‘As 2023 progressed, a change in board chair [from Chris Thomas to Ashford], as well as Mr Moorhouse’s Tynwald motion, meant that Government adopted a “fresh look” at how the problem could be dealt with.’
Treasury provided an update on the progress being made during the July Tynwald sitting last week, stating that a number of cross-government programmes and initiatives have continued to undertake research and collate information related to empty and problem properties.
A Tynwald resolution also requested that Treasury work with the Built Environment and Reform Programme (BERP) team to publish an agreed definition of ‘empty properties’, which should include those unoccupied for prolonged periods and which could be quoted in any review of rates assessment.
This resolution also asked Treasury to continue the work of the ‘Empty Properties Initiative’ and consult with all local authorities on the best way to enable them to reverse the status of existing zero rated properties where appropriate.
Following a survey held with local authorities in March, Treasury will also consider potential solutions including tax measures.
This includes a potential ‘multiplier rate’ for rateable values on empty/problem properties, a ‘rental income tax holiday’ for owners and landlords who refurbish and rent problem properties to target demographics such as key workers, and ‘deemed rental tax’ treatment on empty or poorly maintained properties including vacant land often used for car parks.
A spokesperson from Treasury said: ‘Ultimately, there is still more work to do in ensuring the most efficient and secure legislative route is taken in relation to empty/problem properties and that both the Treasury and Government have the legislative ability to deliver on any of the agreed proposals.’