Douglas Council Leader Devon Watson has welcomed a government consultation on reforming the rating system, describing it as an ‘encouraging first step’ in tackling the island’s housing problems.

The Treasury consultation is seeking views on a series of proposals, including removing rates exemptions for dangerous or ruinous buildings, introducing discounts and placing a potential cap on the rateable value of quarries.

Councillor Watson said the current system was unfair on residents who pay rates while the owners of neglected properties do not.

‘It’s not fair that people who occupy homes, renters and homeowners, end up paying rates while owners of dilapidated properties don’t,’ he said. ‘Fairness needs to be a core part of how we govern.’

He added that the issue had been a long-standing concern for the council. ‘Douglas has been pushing to get rid of or change the sentence around derelict properties for years now,’ he said. ‘Douglas can do certain things alone, but an all-island approach is far more effective.’

Mr Watson said making the owners of derelict buildings liable for rates could help reduce pressure on the housing market.

‘If derelict properties are dealt with across the island by changing their incentives and charging them rates, then we have less pressure on the housing supply,’ he said. ‘We can maybe lower the pressure on rent and on social housing. So this is a win-win move.’

But he argued that further steps were needed. ‘We need to start seeing additional charges for empty properties,’ he said. ‘There are plenty of properties that are in decent condition and can be lived in immediately but are just sitting vacant. There needs to be an incentive to bring these properties back into use.’

Douglas Council recently introduced its own changes to end automatic rate relief for empty or dilapidated properties. Under the new policy, exemptions are limited to defined circumstances, with the aim of encouraging owners to invest in or sell unused buildings.

Mr Watson said at the time: ‘We should be encouraging people to invest in their properties and, first and foremost, make sure people can live in them. There are plenty of buildings in our city centre that could be homes, businesses or community facilities but are left to decay instead because no one’s had to pay rates on them. That’s not fair on the rest of our ratepayers and it’s not good for Douglas.’

Onchan MHK Rob Callister has supported the council’s stance and urged other authorities to follow suit.

‘I wholeheartedly applaud the stance being taken by Douglas City Council regarding empty and vacant properties in the capital,’ he said at the time. ‘I sincerely hope Onchan District Commissioners will now follow suit.’

Mr Callister has also raised the issue in Tynwald, asking whether the island should adopt legislation similar to that in the UK allowing councils to charge an ‘Empty Property Premium’ on homes left unoccupied for long periods.

Mr Watson said he would like to see the island’s other 16 local authorities adopt similar measures.

‘We’re in the middle of a housing crisis and we need to start acting like it,’ he said.