The National Landlords Association (NLA) is calling on the government to widen its offer of 100 per cent Business Rate relief for those affected by the recent devastation caused by UK floods to private residential landlords.
The call comes after the David Cameron Minister promised Business Rate relief for flood hit firms as he set out a package of measures designed to give financial help to affected people and premises, during Prime Minister’s Questions this week.
Although not subject to Business Rates home-owners, including landlords, are liable for Council Tax – even when a property is empty. The NLA believes that it is only fair that the same 100 per cent relief announced this week should apply to Council Tax, if the property is flooded.
Its request comes after growing concern that privately rented homes in the UK are to be excluded from Flood Re - the scheme set up to ensure that flood insurance remains affordable and available to homes at high flood risk.
Currently the proposals for the not-for-profit fund would see all privately rented homes considered ‘non-domestic’ and therefore excluded from the scheme.
Richard Lambert, Chief Executive Officer at the NLA, said: “A huge number of homeowners and business have been affected by floods and it will take a substantial amount of time and expense for anyone to return their properties to use, let alone get their business back on track.
“Landlords’ properties are their business. If flooding makes them uninhabitable, they will face loss of income on top of the costs of repair and renovation. In many areas, they may also face having to pay Council Tax as well, as councils have dropped the discounts and exemptions which used to apply to unoccupied property. The NLA is asking the Government to extend its assistance to all those hit by these devastating floods by providing a period of exemption from Council Tax.
“Many landlords are also quite rightly anxious at present after it emerged that their properties could be excluded from flood relief insurance measures included in the Water Bill. If this oversight is not corrected before the Bill becomes law landlords in areas already suffering the effects of flood damage are likely to find their businesses destroyed and mortgages invalidated by the lack of insurance cover, leading to repossessions, empty homes and blighted communities.”
