Gwynedd Council is set to carry out a public consultation on how to use new powers that will allow them to further increase council tax premium on second homes and long-term empty properties. In July of this year, the Welsh Government announced its plans to introduce stricter rules for holiday homes.
The maximum level at which local authorities can set council tax premiums on second homes and long-term empty properties will be increased to 300%, which will be effective from April 2023. This would effectively quadruple council tax on second homes. Currently, premiums are set to a maximum level of 100%, meaning 23,000 properties in Wales paid double the normal council tax this year.
Local authorities opting to apply premiums have access to additional funding, and the Welsh Government has encouraged councils to use these resources to improve the supply of affordable housing. Under the new rules however, councils will get to decide the level that is appropriate for their individual local circumstances.
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Councils will be able to set the premium at any level up to the maximum. They will also be able to apply different premiums to second homes and long-term empty dwellings.
Before Gwynedd Council makes its decision on council tax premiums for 2023-2024, the authority wants to hear the views of the public about the possibility of increasing the tax by a higher level than the current 100%. According to Welsh Government data, as of July this year Gwynedd had 4,720 chargeable second properties for the period 2022/3, which is a slight fall from the previous year's figure of 5,098.
It also had 1,349 long term empty second properties, also a small drop from last year's figure of 1,558. It means possibly that around 6,000 properties are unavailable as homes for local people.
Speaking about the consultation, Councillor Ioan Thomas, the Gwynedd Council's Finance Cabinet Member said: "As a Council, we have been charging a Council Tax Premium on second homes and long-term empty properties since 2018.
"We are proud of the fact that the money collected is being used to provide affordable and suitable homes for local people. Following the Welsh Government's decision, we now have the right to further increase the premium. Before the Full Council comes to a final decision on 1 December, we are carrying out this public consultation to gather the views of the public.
"This will ensure that every Councillor has the relevant information, including feedback from the public on the possible impact any change may have on the county's communities. That's why we're urging anyone who has a view on this important subject to take this opportunity to have their say."
The public consultation is now open and the public will have until October 28 to present their views and opinions. The results of the consultation will then be considered by the Council's Governance and Audit Committee and its cabinet before the full council makes a final decision in December.
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