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Labour accused of ‘shameful neglect' of retirement home owners

Labour accused of ‘shameful neglect' of retirement home owners

Telegraph26-05-2025

Labour has been accused of 'shameful neglect' of grieving families hit by double council tax bills on retirement homes they have inherited.
Kevin Hollinrake, the shadow housing minister, criticised the Government for refusing to conduct an impact assessment of the second home council tax raid on retirement developments.
Such properties can only be occupied by owners over the age of 55 and come with high service charges, making them difficult to sell.
It comes after The Telegraph heard from dozens of owners who had been hit with four-figure bills from their local council on the homes they had inherited.
Mr Hollinrake said: 'Those hit by this tax grab are often still grieving the loss of a loved one. Yet heartless Labour ministers show no understanding – or concern – for the emotional and financial strain this imposes.
'They haven't even bothered to carry out an impact assessment. That's a shameful neglect of duty on what is effectively a stealth death tax.
'From the start, Labour's handling of this policy has been careless, clumsy, and callous.'
Mr Hollinrake last week submitted a question in Parliament asking the Government whether it would assess the impact of the second home premium on retirement homes.
But Jim McMahon, Labour minister for local government and English devolution, said it was the responsibility of councils to consider the local impact.
Retirement flats are leasehold properties for the over-55s, which have become notoriously difficult to sell thanks to the age restrictions and high service charges.
As of 2019, there were 730,000 retirement housing units in the UK, according to the Elderly Accommodation Counsel.
However, in recent years, their appeal has dramatically waned due to their hefty service charges, which are payable whether or not the property is lived in. When an owner dies, their immediate family is forced to foot the bill while the home is on the market.
This issue is being compounded by the council tax raid. One 66-year-old reader has been paying £6,000 a year in service charges since 2020, as her mother's retirement flat sits on the market. She has now been hit with a £10,000 double council tax bill.
From April 1, all local authorities in England were given the powers to charge 100pc council tax premiums on second homes in their region.
The Telegraph is calling for the premium to be abolished or reduced.
Dennis Reed, of charity Silver Voices, said: 'The refusal even to consider mitigating measures to prevent hard-to-sell retirement flats from being penalised is another example of how low pensioners are on the Government's policy priority list.
'Such flats are clearly not second homes and this misinterpretation must be outlawed.'
A spokesman for the Ministry for Housing, Communities and Local Government said: 'We will consult on detailed plans to drive up transparency of service charges and hold landlords to account.
'It is for councils to decide whether to introduce a council tax premium and assess the local impact.'

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