Council set to retain 150% tax premiums on second and empty homes

Cyngor Gwynedd’s Cabinet will consider proposals on Tuesday, November 10, to maintain the existing charges for the 2027/28 financial year.

The recommendations would retain a 150% premium on Class B second homes, with no discount offered on Class A second homes.

The council also proposes maintaining no discount for properties empty for six months or more, with a 150% premium applying once they have been empty for at least 12 months.

If backed by the Cabinet, the recommendations will go to the full council for a final decision on December 3.

The council must make an annual decision on whether to charge premiums on long-term empty properties and second homes, also known as “periodically occupied dwellings”.

According to the Cabinet report, without a decision, these properties would receive a 50% council tax discount.

The existing premium for both second homes and long-term empty properties is 150%, although legislation allows councils to charge up to 300%.

“If the council were to increase the premium rate it will have to consider whether such a decision would be reasonable after considering statutory guidance, the result of research and legal advice which the authority has obtained,” the report states.

Since the premium was introduced at the start of the 2018/19 financial year, income has been placed in a dedicated fund supporting projects in the council’s housing action plan.

The council’s housing strategy aims to ensure people in Gwynedd can access suitable, high-quality homes that are affordable and improve their quality of life.

More than £200 million is due to be invested over the lifetime of the housing action plan, supporting more than 17,000 people.

Homelessness

Since 2023/24, £3 million a year, adjusted for inflation, has also been used within the revenue budget to fund the homelessness service.

The report states: “The funding received from the council tax premium fund is fully earmarked against several projects in the housing action plan, such as supported accommodation schemes, building our own houses, contributing to residential elements in community schemes, bringing the county’s empty houses back into use, and ensuring disabled people can continue to live in their current homes.”

The housing strategy’s objectives include preventing homelessness, ensuring social housing is available to all and making homes affordable.

It also seeks to improve the environmental performance of housing and ensure homes have a positive effect on residents’ health and wellbeing.