Council tax premium on empty homes could be hiked to help fight housing crisis

Dale Spridgeon, local democracy reporter

Councillors could consider upping the rate of council tax premiums on empty homes to bring them in line with the rate for second homes in the county.

The idea was discussed by councillors as they agreed to extend a project which is aiming to help fight a housing crisis in the county.

Cyngor Gwynedd’s cabinet approved a proposal to extend its Housing Action Plan [HAP] for another two years to the end of the 2028/29 financial year, at its meeting on Tuesday, May 13.

The HAP includes 33 projects aimed at providing Gwynedd residents with access to “suitable, affordable and quality” homes.

Among its objectives is tackling homelessness.

Council tax premium fund

The cabinet agreed to commit to providing a sum of £6m raised from the council tax premium fund, towards the HAP’s extension.

The council currently charges a 100% council tax premium on homes that have been empty for 12 months or more.

It was suggested during the meeting that this could eventually be brought in line with the rate charged for second homes, which is currently 150%.

Councillors are due to reassess the premium rates in December.

‘Supportive’

Cabinet member for finance Cllr Huw Wyn Jones said he was “very supportive” of the premium being charged on empty homes.

He said it felt “quite immoral” that there were empty homes around, when some people were “seeking a roof over their head”.

He asked: “Is it possible to increase the premium even higher on houses that are empty for longer terms?

“I can’t see any reason for a house to be empty for three, five or ten years. Can we set it even higher, to try and attract those houses back into use?”

Cabinet member for housing and property, Cllr Paul Rowlinson, agreed, saying the HAP, used the money raised from the premiums.

He said: “The current level of 100 percent on empty homes is acceptable, but as I said in the full council in December, it would be beneficial to increase the level of houses that have been empty for many years, where they have been paying 100 percent for several years, where the measures have not had the impact we wanted.

“I am pleased that the HAP has brought 269 empty homes back into use, through direct support from the council.

“This figure does not include houses that may have come back into use without support from the council, where people have been paying the premium but then decide to put their house on the market, or bring it back for use in some other way.

“We should definitely consider increasing the premiums on empty homes, those which have been empty for a long time, but keep it at the current level for the ones that are just empty for a year or so.”

Review

The Council’s chief executive Dafydd Gibbard said the topic had been discussed “more than once” over the years.

He said: “We did not want to increase the level at one period, but I think it was said last time, when the premium was being set, that we need to review the situation, to shift the rate for empty homes to the same rate for second homes.”

He added that work looking into the subject was already happening. “It is getting more difficult to justify the different rates,” he said.

He told councillors: “You will be setting the premiums again in December, when it will be time for you to decide if this is something you want to increase or not.”