Second Home and Long-Term Empty Properties Council Tax Charges

Gweld y tudalen hon yn Gymraeg

This consultation is now closed.

About this consultation

Up to the 2022/23 financial year, Sections 12A and 12B of the Local Government Finance Act 1992 allowed Councils in Wales to charge higher amounts (a premium) of up to 100% on top of the standard rate of council tax on long-term empty homes (Section 12A) and second homes (Section 12B).

The Welsh Government has amended Sections 12A and 12B of the 1992 Act through the Council Tax (Long-term Empty Dwellings and Dwellings Occupied Periodically) (Wales) Regulations 2022. The legislative changes mean that from 1 April 2023 Councils will be able to charge a premium of up to 300% on second homes and long-term empty properties. Each Council can choose how it acts when considering the level of charge to apply to empty properties.

We want to hear your views on how we should respond to the change in legislation that increases the premium we can apply on second homes or long-term empty properties. If you want to share your views, please respond to this survey by 6 January 2023.


What is Council Tax?

Council Tax is a local tax set by the Council based on the valuation band of your property. The income generated is used to fund the Police, Fire Service, Town and Community Councils and the Vale of Glamorgan Council.

We use the revenue raised through Council Tax to fund vital local services such as education, social services, refuse collection and highways maintenance.


What are 'second homes' and 'long-term empty properties'?

A second home is a dwelling which is not a person's sole or main home and is substantially furnished. The 1992 Act refers to these dwellings as dwellings occupied periodically, but they are commonly referred to as 'second homes'. This can include properties used for short term holiday lets which are subject to Council Tax and don’t qualify for the statutory exemptions.

A long-term empty property is a dwelling that is unoccupied and substantially unfurnished for a continuous period of at least one year.

By law, some long-term empty properties and second homes are exempt from paying a Council Tax premium. These are listed below:

Class

Definition

Application

Class 1

Dwellings being marketed for sale

Second homes and long-term empty properties

Class 2

Dwellings being marketed for let

Second homes and long-term empty properties

Class 3

Annexes forming part of the main dwelling

Second homes and long-term empty properties

Class 4

Dwellings which would be someone’s sole or main residence if they were not residing in armed forces accommodation

Second homes and long-term empty properties

Class 5

Occupied caravan pitches and boat moorings

Second homes

Class 6

Seasonal homes where year-round occupation is prohibited

Second homes

Class 7

Job-related dwellings

Second homes



Rationale for introducing premiums

There are clear benefits in introducing premiums including:

  • Bringing long-term empty properties back into use and supporting the Council in providing safe, secure and affordable homes. The headline need for affordable housing in the Vale of Glamorgan to 2026 is 1,205 per annum
  • The existence of large numbers of long-term empty dwellings is a drain on the Council’s resources. For example, the costs of outreach work and case work involving complaints and emergency works, so if the overall aim of bringing properties back into use is achieved, the burden on the public purse would be reduced
  • A financial benefit to the Council which will help to fund vital services in a difficult period of budgetary constraints

We are considering the most appropriate time to introduce the potential premiums, which for second homes could be from the 2024/25 financial year and for long-term empty properties could be either the 2023/24 or the 2024/25 financial year. Should the effective date to introduce any long-term empty premium be the 2023/24 financial year, this will be reflected in the Council’s appropriate final budget report.


Options we are considering

Option One
Maintain the current Vale of Glamorgan policy which is to not charge premiums and continue to charge the flat rate of Council Tax according to band for all long-term empty properties and second homes.

Option Two
Charge a 100% premium on long-term empty properties and a 100% premium on second homes.

Option Three
Charge a 200% premium on long-term empty properties and a 200% premium on second homes.

Option Four
Charge a 300% premium on long-term empty properties and a 300% premium on second homes.

Preferred Option
Given the local pressures on housing and local government finance it is proposed that option two is implemented thereby levying a 100% premium on all long-term empty properties and a 100% premium on second homes.

Gweld y tudalen hon yn Gymraeg

This consultation is now closed.

About this consultation

Up to the 2022/23 financial year, Sections 12A and 12B of the Local Government Finance Act 1992 allowed Councils in Wales to charge higher amounts (a premium) of up to 100% on top of the standard rate of council tax on long-term empty homes (Section 12A) and second homes (Section 12B).

The Welsh Government has amended Sections 12A and 12B of the 1992 Act through the Council Tax (Long-term Empty Dwellings and Dwellings Occupied Periodically) (Wales) Regulations 2022. The legislative changes mean that from 1 April 2023 Councils will be able to charge a premium of up to 300% on second homes and long-term empty properties. Each Council can choose how it acts when considering the level of charge to apply to empty properties.

We want to hear your views on how we should respond to the change in legislation that increases the premium we can apply on second homes or long-term empty properties. If you want to share your views, please respond to this survey by 6 January 2023.


What is Council Tax?

Council Tax is a local tax set by the Council based on the valuation band of your property. The income generated is used to fund the Police, Fire Service, Town and Community Councils and the Vale of Glamorgan Council.

We use the revenue raised through Council Tax to fund vital local services such as education, social services, refuse collection and highways maintenance.


What are 'second homes' and 'long-term empty properties'?

A second home is a dwelling which is not a person's sole or main home and is substantially furnished. The 1992 Act refers to these dwellings as dwellings occupied periodically, but they are commonly referred to as 'second homes'. This can include properties used for short term holiday lets which are subject to Council Tax and don’t qualify for the statutory exemptions.

A long-term empty property is a dwelling that is unoccupied and substantially unfurnished for a continuous period of at least one year.

By law, some long-term empty properties and second homes are exempt from paying a Council Tax premium. These are listed below:

Class

Definition

Application

Class 1

Dwellings being marketed for sale

Second homes and long-term empty properties

Class 2

Dwellings being marketed for let

Second homes and long-term empty properties

Class 3

Annexes forming part of the main dwelling

Second homes and long-term empty properties

Class 4

Dwellings which would be someone’s sole or main residence if they were not residing in armed forces accommodation

Second homes and long-term empty properties

Class 5

Occupied caravan pitches and boat moorings

Second homes

Class 6

Seasonal homes where year-round occupation is prohibited

Second homes

Class 7

Job-related dwellings

Second homes



Rationale for introducing premiums

There are clear benefits in introducing premiums including:

  • Bringing long-term empty properties back into use and supporting the Council in providing safe, secure and affordable homes. The headline need for affordable housing in the Vale of Glamorgan to 2026 is 1,205 per annum
  • The existence of large numbers of long-term empty dwellings is a drain on the Council’s resources. For example, the costs of outreach work and case work involving complaints and emergency works, so if the overall aim of bringing properties back into use is achieved, the burden on the public purse would be reduced
  • A financial benefit to the Council which will help to fund vital services in a difficult period of budgetary constraints

We are considering the most appropriate time to introduce the potential premiums, which for second homes could be from the 2024/25 financial year and for long-term empty properties could be either the 2023/24 or the 2024/25 financial year. Should the effective date to introduce any long-term empty premium be the 2023/24 financial year, this will be reflected in the Council’s appropriate final budget report.


Options we are considering

Option One
Maintain the current Vale of Glamorgan policy which is to not charge premiums and continue to charge the flat rate of Council Tax according to band for all long-term empty properties and second homes.

Option Two
Charge a 100% premium on long-term empty properties and a 100% premium on second homes.

Option Three
Charge a 200% premium on long-term empty properties and a 200% premium on second homes.

Option Four
Charge a 300% premium on long-term empty properties and a 300% premium on second homes.

Preferred Option
Given the local pressures on housing and local government finance it is proposed that option two is implemented thereby levying a 100% premium on all long-term empty properties and a 100% premium on second homes.

  • This consultation is now closed.

    Second Home and Long-Term Empty Properties Council Tax Charges

    We want to hear your views on how we should respond to the change in legislation that increases the premium we can apply on second homes or long-term empty properties up to a maximum of 300%.

    If you choose to respond, you can comment on any or all of the questions. 

    We will use your answers to inform how we apply our discretion in relation to second homes and long-term empty properties within the Vale of Glamorgan.

    If you would rather respond to the consultation by post, please contact us on 01446 709564 and we will send you the form, together with a pre-paid envelope for its return.