Cabinet unanimously backs rise in council tax premium on empty homes to 150%

Dale Spridgeon, Local Democracy Reporter

Recommendations to increase council tax premiums on long term empty homes from 100% to 150%, in line with second homes, have been unanimously backed in a north Wales county.

Cyngor Gwynedd’s Cabinet was discussing a council tax report over its discretionary powers to allow discounts or raise a premium – on second homes and long-term empty dwellings.

It approved proposals for its favoured options for 2026/27, which will go to the full council  for a final decision, on December 4, 2025,  at its meeting on Tuesday, November 11.

Under legislation, Section 12 of the Local Government Finance Act 1992, the Cabinet agreed to three proposals which would see one change:

It agreed to levy no discount on class A second homes, and no discount and to raise a premium of  150% on class B second homes  – both meaning no change.

But it also agreed to no discount on homes that have been empty for six months or more, and to raise a premium of 150% on homes that have been empty for 12 months or more –  an increase from the existing rate of 100% to 150%.

The council had noted that the number of empty homes in Gwynedd remained “a concern”. According to a June 2025  report there were 1,121 long-term vacant properties.

The council is working to bring vacant properties back into use and the report noted “over 500 dwellings were vacant in Gwynedd for over three years, in the context of a situation where a housing crisis has been identified.”.

For 2024/25 and 2025/26 financial years, the council has charged a Council Tax Premium of 150% on second homes and 100% on long-term empty properties.

Legislation does allows the council to charge a premium of up to 300%.

If the council was to increase rates further, it would have to consider whether the decision was reasonable and with regard to the statutory guidance, research and legal advice.

Giving the report Cllr Huw Wyn Jones said the premium had been subject to “substantial and comprehensive discussions,” and specific research had been commissioned by the full council in 2024.

He said the council had to make an annual decision, if it wished to levy a council tax premium on long-term vacant properties and second homes.

Without a decision, a 50% discount on council tax on such properties would have to be offered.

He also noted that the number of properties subject to second homes premium had reduced over the past two years.

This, he said was due to “legislative changes” regarding properties transferring from being subject to council tax to being self-catering properties subject to business rates.

“Research  does not justify changing the scale of the premium on second homes ” he said adding however, that the “number of long term vacant properties had “remained consistent”.

“Research had shown that the people of Gwynedd see such properties as harmful” he said.

“It therefore recommended that the premium on those such properties is to increase, to the same level as the premium on second homes.

“After considering the implications carefully, we believe that there is justification not to undertake another public consultation.

“But if we were to increase the premiums further, a further consultation would be required.

“The decision sought is that the cabinet recommends one change to the council tax premium, for 2026/27, which is the level of premium for long term vacant property”.

Reading the recommendations, he proposed:

• That Gwynedd Council allows no discount on class A second homes, under Section 12 of the Local Government Finance Act 1992 (i.e. no change).

• That Gwynedd Council allows no discount and raises a premium of  150% on class B second homes, under Section 12B of the Local Government Finance Act 1992 (i.e. no change).

• That Gwynedd Council allows NO discount on homes that have been empty for 6 months or more and raises a premium of 150% on homes that have been empty for 12 months or more, under Section 12A of the Local Government Finance Act 1992) (i.e. increase the premium from 100% to 150%).

Seconded by Cllr Paul Rowlinson,  the vote  was passed unanimously.

Council leader Cllr Nia Jeffreys  said: “This is a matter we all regularly come across in Gwynedd in our wards, houses being empty for long periods of time.

“The could be used to house local people, of course we all know of the homelessness problems, and that we have a housing crisis in this county”.