Agenda item

Following a debate as to whether the issue of adopting a premium on second homes, referred to in the circulated report, could be considered and determined separately from the adoption of a premium on empty properties, also referred to in the circulated report, it was moved, seconded and duly

RESOLVED that the report on Second Homes and Empty Properties Council Tax Premiums be considered as circulated.

[NOTE: Councillors K.V. Broom, M. James, D.M. Cundy, S.A. Curry, H.A.L. Evans, L.D. Evans, B.D.J. Philips and E. Williams had earlier declared interests in this item and left the meeting.] Cllr K.V. Broom having been granted dispensation to speak but not vote remained in the meeting during the  debate but was placed in the waiting room during voting.

The Cabinet Member for Resources presented a report which sought approval for the adoption of premiums on second homes and empty properties. He commented that there were over 800 second homes in Carmarthenshire and 1,800 houses that had been empty for at least over a year – and a number for many years. Both categories of properties had, he stated, an adverse effect on local communities and the purpose of the report was to either encourage greater use of these properties or ensure that their owners contributed more towards local communities through a Council Tax premium.

In the case of the long-term empty houses the Cabinet Member for Resources highlighted the negative effect they had on streets, often becoming the target of vandalism and a wasted resource. Turning these into homes once more should result in less demand for new houses to be built on green fields. He commended the council for bringing 700 empty houses back into use since 2016 and considered that a new policy was needed for further improvement. The Council, he pointed out, had consulted widely on this issue with 61% of respondents agreeing that long-term empty housing adversely effected local communities and a majority agreeing with charging a premium. It was proposed to charge a 50% premium on houses that had been empty from one to two years, rising to 100% between two and five years, and 200% after five years.

On the issue of second homes the Cabinet Member for Resources expressed the view that the answer lay, in part, in the legislation passed by the Welsh Government in 2014 and recently amended and strengthened. The legislation aimed to ensure that Second Homes which were holiday lets were either let for at least 182 days a year, which would boost the tourism industry, or that owners paid a premium on the Council Tax.  This contribution could, it was suggested, alleviate the negative impact of Second Homes when they reduced the local housing stock and pushed up house prices to the extent that even essential workers like nurses and teachers were unable to afford to live in the communities in which they had been brought up.

It was therefore proposed to charge Second Homes a 50% premium to start, with a view to raising it to 100% in April 2025, and Empty Homes premium scales as noted earlier. The decision to charge a premium on Second Homes and Long Term Empty Houses had to be made at least a full year in advance and if the recommendations were accepted the policy would come into force in April 2024.

By the year 2025/26 it was estimated that the premiums could potentially raise anything up to £3m depending on the response of owners which would greatly help the Council maintain essential services at a time of great financial pressure – although the primary aim was to encourage better use of housing. An impact assessment had also been conducted to assess the impact on the Welsh language, on the deterioration of rural living, on house prices and also on the zero carbon net agenda and other factors. Council was informed that prior to the measures being implemented any possible impact on the tourism industry would be discussed, including those who should be exempt from the premium and were not already within the current exemption classes specified. 

It was moved and duly seconded that the report and recommendations be endorsed.

The following amendment to recommendation 3 in the report was proposed by Councillor R. James and duly seconded:

“The Council are requested to approve and recommend a council tax premium on long-term empty properties as follows:

• 100% Premium for empty properties > 1 year < 2 years;

• 50% Premium for empty properties > 2 years < 5 years;

• 200% Premium for empty properties > 5 years”.

A number of statements were made both in support of and against the amendment and following a vote it was 

RESOLVED that the amendment be not supported.

The following further amendment to recommendation 3 in the report was proposed by Councillor R. James and duly seconded:

“The following 2 additional classes of exemption from second home premiums be added to the 7 class of dwellings included in the report:

·       All buildings and properties on agricultural land be exempt from the premium;

·       Holiday lets and self accommodation businesses;

And that the Cross-Party Group assesses these 2 classes of exemptions ahead of their introduction in 2024.”

A number of statements were made both in support of and against the amendment and following a vote it was 

RESOLVED that the amendment be not supported.

The Council then considered the original motion as moved and seconded and

FURTHER RESOLVED

6.1that a Council Tax Premium be applied /charged on second homes and long-term empty properties as defined by Sections 12A and12B of the local Government Finance Act 1992, as inserted by the Housing (Wales) Act 2014;

6.2that a council tax premium of 50% be levied in 2024/25 in respect of second homes with a view to increasing the premium to 100% from April 2025;

6.3.to approve a council tax premium on long-term empty properties as follows

•50% Premium for empty properties > 1 year < 2 years

•100% Premium for empty properties > 2 years < 5 years

•200% Premium for empty properties > 5 years;

6.4that delegated authority be given to the Director of Corporate Services to implement the changes and to notify the owners of all affected properties;

6.5that these premiums be kept under review by the Director of Corporate Services and Cabinet Member for Resources and any changes be brought to Cabinet and Council for approval as appropriate.