Number of vacant homes ‘a concern’ as council considers tax premiums

Dale Spridgeon, Local Democracy Reporter

Council tax premiums on long-term empty homes in a north Wales county could be increased further.

Cyngor Gwynedd said the number of empty homes in Gwynedd remains “a concern” amid ongoing work to bring vacant properties back into use to help tackle a “housing crisis”.

According to a report, as of June 2025 there were 1,121 long-term vacant properties in the county.

Some 572 had been empty for between one and three years, while 231 had been empty for between three and five years.

A total of 316 had been unoccupied for more than five years.

A council 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.”

It added that its Empty Homes Team within the Housing and Property Department were also “addressing the situation in the face of limited resources”.

Now, Cyngor Gwynedd is to review its council tax premiums, seeking a decision which could see a rise on long term empty homes from 100% to 150%.

Next Tuesday, (November 11) the council’s cabinet will be asked to recommend favoured options to the full council for council tax premium levels on second homes and long-term empty dwellings for 2026/27.

It will be asked to recommend, under Section 12 of the Local Government Finance Act 1992:

• That Cyngor Gwynedd allows no discount on class A second homes – i.e. no change.
• That it allows no discount and raises a premium of 150% on class B second homes – i.e. no change.
• That it allows no discount on homes that have been empty for six months or more and raises a premium of 150% on homes that have been empty for 12 months or more – i.e. an increase in the premium from 100% to 150%.

If agreed, the options for 2026/27 will then go before the full council on December 4, 2025.

Decline

The report said: “The number of second homes has increased since 2024/25, after several years of decline, with the change more pronounced than it was in the November 2024 research.

“This change is the result of a legislative change, whereby a property must now be let for 182 days a year to qualify for inclusion on the non-domestic rates list.”

As a result, it said the Valuation Office Agency had transferred a number of properties within Gwynedd from the non-domestic rates regime to a Council Tax band, as there was no resident in the property the dwellings were also subject to a premium.

The report said the council “understand that a large number of appeals” were lodged against the decision to transfer properties from one regime to another, and that the situation “in terms of the number of second homes, remains volatile at present”.

It added: “Although the trend of reduction in the number of second homes has ceased, that is as a result of a legislative change, is not seen as a justification for changing the premium rate on second homes.”

Uncertainty

With potential for changes to the 182 day rule in the coming year, it added “this uncertainty is also an issue to consider,” suggesting that it would be “premature to switch the premium rate to second homes at this time”.

It concluded that statistics and research over several years “did suggest that the Premium on second homes was realising its intention,” and the recent increase in numbers was “the result of other legislative factors”.

The report also noted: “On the other hand, research has shown that keeping the Premium rate for long-term empty properties at a lower level than the Premium on second homes, has not had an impact on reducing the number of empty properties.

“The council has a Empty Homes Scheme in place which aims to bring long term empty properties back into use, but nevertheless the number of dwellings that have been vacant for a number of years remains a concern.

“As research work notes, a 100% Premium level is not to be seen to have had an impact on this. It is appropriate, therefore, that the level of the Premium on long-term empty properties be reviewed.”