Northern Ireland finance minister, Sammy Wilson, has announced proposals to reduce the landlord allowance on rates collection.
The Article 21 allowance, which provides a discount to landlords who volunteer to collect all rates due on their properties and pay for vacancies, is proposed to change from next April.
Wilson said: “Where a landlord enters into an agreement to pay rates on their property a 15 percent allowance is currently awarded, compensating landlords for collecting rates on the Department’s behalf.
“In addition, rates are paid whether the property is occupied or not. From next year, with the rating of empty homes at 100 percent, it would be unfair, to other ratepayers, to maintain the allowance at 15 percent as all vacancies will be charged for.”
Wilson confirmed he had taken account several issues including the turnover level of properties, which tends to be more applicable to the private rented sector, and difficulties in making collections.
Wilson added that his proposal is to reduce the voluntary allowance to 12.5 percent in the private rented sector and 10 percent for Housing Associations and the Northern Ireland Housing Executive.
He said: “The consultation paper published today sets out the background to the issue and proposals for this area. Following consultation I will make decisions on the way forward, with the necessary legislation subject to Assembly approval.
“Any changes will be effective from 1 April 2011 and will apply to both current and new agreements with my Department.”
Wilson also took the opportunity when announcing these new proposals to remind landlords and tenants of their obligations, in terms of paying rates.
He said: “If you own or occupy a rented property, you need to be sure who is responsible for paying rates. This is set down in law, which overrides the provisions of any tenancy agreement.”
• Rochdale landlords are getting an opportunity to find out how the recent change in government and emergency budget will impact on both their property and tenants at an event at Milnrow Cricket Club on 15 July.
National Landlords Association representative Tom Reynolds will guide landlords through the changes to housing legislation that have been introduced since the coalition took charge.
Other speakers will be there to explain in detail, the changes to the way Housing Benefit is now calculated.
Cllr Dale Mulgrew, Cabinet Member for Development said: “The forum is a great opportunity for Rochdale Borough Council to keep private landlords informed of the latest changes at both a local and national level. It continues our joint working with the private sector at a time when we need to look at how effectively we can work with all partners.”
The event will start at 6.30pm and landlords wishing to attend should telephone 01706 926623 to reserve their place.
