150% and 200% council tax premiums backed on second homes and holiday homes

Richard Evans Local Democracy Reporter

Higher council tax premiums for second homes and long-term empty properties will not be cut, a north Wales council confirmed.

Conwy County Council anticipates the 150% premium for second homes and 200% for long-term second homes will generate an additional net income of £5.519m this year alone (2025/26)

A full council meeting at the council’s Coed Pella HQ heard how the policy helped reduce the number of long-term empty homes by more than 23% in the last year. The number of second homes with a premium had remained static during the same period.

Cllr Chris Cater, the cabinet member for finance and strategic planning, told the chamber that council tax funded about 30% of Conwy’s finances.

He said respondents in a recent public consultation said second homeowners contributed to the local economy and there was a risk of destabilising the housing market – as well as a risk to tourism.

“Balance”

But Cllr Cater also said there was a “balance to be struck between the policy benefits and the resulting financial consequences”.

He added: “We must be sensitive to unintended consequences developing.” Cllr Nia Owen seconded Cllr Cater’s proposals to back the report.

Cllr Chris Hughes said: “There’s significant evidence that the current position is working. Properties are starting to come back into use, and I think there is an awful lot of work at the moment having to be undertaken by council tax officers in terms of reviewing those properties, ensuring they are taxed at the right rate, but also identifying those properties that may have slipped under the net over the past few years.

“I think when we look at the figures, we have hundreds of Conwy residents living in bed and breakfast and temporary accommodation, but we also find that three quarters of those paying a premium have properties in bands A, B and C, the affordable categories of housing, that would otherwise be housing those people who we are paying to live in bed and breakfast.

“It seems an absurd situation that we as a council are paying to keep people in bed and breakfast type accommodation and in other forms of temporary accommodation, whilst tourists to our area are living in those homes, but for large periods of time those homes are empty and are not contributing to our local community.”

Report

According to the report, which was discussed by a scrutiny committee and cabinet the previous week, Conwy has a total of 58,454 properties and 1,572 homes that either fall into the category of second homes or holiday homes.

The same report said Conwy has 901 properties that are “unoccupied and substantially unfurnished” that have been empty beyond the sixth-month premium exemption period.

But Cllr Louise Emery feared the premiums could damage the tourist industry.

“Our visitors have got to stay somewhere, and we don’t have enough accommodation in terms of caravan parks or campsites or hotels or any other form of accommodation that is not self-catering property,” she said.

“We need to have more accommodation for our visitors. And this premium is having such an effect on our tourist industry. If you actually speak to the different tourism bodies, you’ll see what an impact it is having.

“And let’s not forget, particularly in the rural economy, we have two forms of industry: agriculture and tourism. And the thought that young people want to stay in their area, they can only stay in that local area if there is work, if they have a job, if they have income in order to pay rent or raise money for a deposit.

“We are looking at a short-term money grab at the long-term future of the tourist industry, and we are just not getting it. Pembrokeshire gets it. That’s why they’ve reduced it to 125%.

“We are just looking at how we can solve our budget crisis, and remember, the money at the moment, it’s not going towards affordable housing. It is going towards emergency housing, so it is not having the impact we want it to have at the moment. You just can’t collect enough tax off people to put into affordable housing. So I really think this is a retrograde step.”

“Supply chain”

Cllr Harry Saville said there was evidence from the industry that self-catering businesses were operating at a loss, arguing the premiums also affected “supply chain” businesses.

He added: “I don’t think we can understate the damage this is causing to that part of our hospitality sector.”

Cllr David Carr said: “I absolutely support the policy, and the policy is working. As Cllr Chris (Evans) said, we have the absurd situation where people are coming to visit and stay in empty homes and yet hotel places are being taken by homeless people. It’s not right.”

He added that young people were moving away and village schools were closing.

For the years 2026/27 and 2027/28, the council voted in favour of:

• Retaining the current 150% Council Tax Premium for second homes.
• Retaining the current 200% Council Tax Premium for long-term empty homes.
• Retaining the current 300% Council Tax Premium for long-term empty homes that have been empty for five years or more.
• And to continue to not apply a discount in respect of second homes and holiday homes and long term unoccupied and unfurnished properties in the prescribed Classes A, B, and C for 2026/27.