Double Council Tax shock hits Freshwater residents

The IW Council’s policy of charging council tax on empty properties to new owners, who are already paying out thousands of pounds in refurbishment repairs, has been criticised by struggling residents.

The IW Observer today reveals two cases, both in Freshwater, where people who want to improve dilapidated properties, have been hit by huge and unexpected bills.

Probate property problem

In the first case, Willow Cameron, 30, and her partner, Hagen Samson, 29, bought their property in Camp Road, in July after it had been vacant for more than a year having been left in probate.

It was in desperate need for major repairs, ranging from replacing rotten joists and floors to dealing with condemned windows and back boilers.

However, they were stunned to discover they had been hit by a 100 per cent council tax premium, doubling their monthly payments from £234 to £474.

Willow, a food and beverage manager, said: “After years of working and saving, my partner and I, like many young first-time buyers, faced a monumental challenge in purchasing our first home.

“It felt like an impossible feat, given the current housing market, but, against all odds, we managed to secure a mortgage and buy a house earlier this year — thanks largely to our Help to Buy ISAs.

“The property needed major repairs and it felt as though we were taking on a project far beyond our means.

“While navigating the stresses of renovating, we were blindsided by a 100 per cent council tax premium slapped on us by the Isle of Wight Council, doubling our monthly payment from £234 to £474.

“Since the property had been deemed ‘long-term empty’, due to the previous owner’s passing, we found ourselves suddenly liable for this fee. This charge hit us without warning, despite having notified the council of our situation and our intentions to bring the property back to a habitable state and make it our home.

“To say we were shocked would be an understatement – how can we, as first-time buyers, be penalised for a situation entirely out of our control?

‘Financial nightmare’

“We are now trapped in a financial nightmare, forced to carry the burden of mortgage payments, rent for our current accommodation, and this unexpected double taxation.

“We’ve had to split our living situation, with one of us staying in the property (without heating or hot water) in the hope that the premium will be removed, whilst the other remains in rented accommodation. Even worse, the council has shown no compassion despite emotional pleas on the phone, leaving us with court threats hanging over our heads.

“I grew up on the Island, but this experience has made us question our decision to return. We chose to settle here because we wanted to contribute to its economy and be close to family, but the lack of support for young, hard-working people is disheartening.

“I am sure we are not the only ones facing this issue. Many, like us, are unaware of this harsh penalty, which neither our solicitor nor mortgage lender flagged during the buying process. We are so worried and stressed, exhausted and disillusioned. We worked so hard to save up the money and, in hindsight, should probably have left the Island like many other young couples. Right now, it feels like we’re being pushed out of the very place we’ve both always called home.

Hagen, who works as a carpenter, added: “It’s discouraging for people like us who want to renovate derelict homes and contribute to solving the housing shortage. It feels like they would rather see a property stay derelict than encourage people to bring it back into use.”

Pet Shop boys

Meanwhile, Paul Mocroft, and his brother, Mark, bought Freshwater Pet Store in School Green Road two years ago.
The shop is run by Mark’s partner, Kelly, and has a three-bedroomed flat at the back of the property which they are renovating at considerable cost.

Paul said: “The flat needed completely renovating, so we could not rent it out in the state it was in at the time. But it has been a bigger challenge than we originally thought and we have now found a problem with the roof which had not been picked up by the building survey.

“We have paid all our council tax bills as they have come through. But then we were hit with a bill running into thousands of pounds for the flat, which has been backdated to cover the empty period before we owned the property. We weren’t aware of this when we first bought it, nor, it would appear, were the council as this additional bill only came a year after we bought it.

“We’re not trying to get out of paying our bills, but we might have thought twice about buying it if we had realised there was this potential council tax debt. We’re now faced with a double council tax bill through no fault of our own.

“We have asked the council why we have to pay this extra money but have been told that it is to do with Government legislation.

“There is a wider implication for anyone else buying a property that has been empty and needs renovating. New owners could be faced with double council tax or more from the day they take ownership.

“This does not seem to us to be an incentive to get more good quality housing back for people who desperately need it.”

What does the IW Council say?

A council spokesman said: “We appreciate anyone’s frustration when receiving a premium whilst carrying out refurbishment, which applies from one year after the date from which the property is originally recorded as empty.

“In February 2024, the council adopted powers which means properties empty and unfurnished for more than one year are charged double the normal rate of Council Tax.

“We send letters to owners in advance of a premium being applied and explain there may be exceptions. The government has suggested that exceptions may be for properties undergoing probate, those being actively marketed for sale or let or undergoing major repair works or structural alterations. If in doubt we can offer guidance.

“All cases are individually reviewed and treated in line with the legislation, any enforcement is only a last resort. If anyone feels they have been treated unfairly, complaints can be raised via the website.”

The spokesman did not mention that councillors voted to introduce the policy knowing that officers can consider a reduction in the tax charge where it causes exceptional hardship. Cases will be considered on individual circumstances and there is a right of appeal against the council’s decision.