Maximising New Homes Bonus Through Empty Homes Reviews

The New Homes Bonus (NHB) is a vital source of funding for local authorities, designed to incentivise housing growth. However, many councils are missing out on substantial allocations simply because their internal data regarding empty homes is inaccurate.

The Mechanics of the New Homes Bonus

The NHB calculation is based on the net increase in effective housing stock. This figure is derived not only from new builds and conversions but also from bringing long-term empty properties back into use. Crucially, the calculation relies on the data submitted by the council via the CTB1 form in October each year.

If a property is incorrectly classified as "Long-Term Empty" on the council's tax base, it negatively impacts the net housing stock figure, directly reducing the NHB allocation for the following year.

The Problem with Empty Homes Data

Maintaining an accurate register of empty homes is notoriously difficult. Properties become occupied without the council being notified. Landlords may fail to register new tenants, or owners may move back into a property previously left vacant.

Relying on property owners to proactively update the council is an ineffective strategy. Consequently, council tax databases often contain hundreds, if not thousands, of properties listed as empty that are, in reality, occupied. Every single one of these misclassified properties represents lost revenue.

The Limitations of Traditional Reviews

Many councils attempt to clean their data prior to the CTB1 submission by conducting manual reviews. This typically involves sending letters to the owners of properties listed as empty, asking them to confirm the status.

This approach is flawed for several reasons. Firstly, response rates are typically low. Secondly, it relies entirely on self-certification, which may not be accurate. Finally, it is a slow, resource-intensive process that places a heavy administrative burden on the revenue team during an already busy period.

A Data-Driven Approach to Revenue Recovery

To maximise the New Homes Bonus, councils must adopt a proactive, data-driven approach to identifying occupied properties. By cross-referencing the council's list of empty homes against external financial and consumer datasets, it is possible to identify active digital footprints at those addresses.

If a property is registered as empty, but data shows active utility accounts, recent credit applications, or mobile phone contracts linked to that address, there is a high probability that the property is occupied.

The OccupID Solution

OccupID automates this complex cross-referencing process. We ingest the council's empty homes data and run it through our intelligence engine, comparing it against over 70 distinct data sources.

The output is a prioritised list of properties that are highly likely to be occupied, despite being registered as empty. This allows the council to target their interventions precisely, updating their records efficiently and ensuring the CTB1 return accurately reflects the true housing stock.

Conclusion

In a climate of severe financial constraint, local authorities cannot afford to leave funding unclaimed due to inaccurate data. By leveraging property intelligence to conduct robust empty homes reviews, councils can ensure they receive their full New Homes Bonus entitlement, securing vital funds for local services.