Second homes and empty properties in Carmarthenshire set to pay council tax premium

The council say there are concerns at both a local and national level about the impact of second homes and empty properties on communities. It says it’s working on increasing the provision of affordable housing in Carmarthenshire to bring long-term empty homes back into use.

In response Carmarthenshire Council have announced a 50% council tax premium on second homes in the county from 1 April 2024 – rising to 100% in 2025.

Owners of empty properties that have not been occupied for over a year will be charged a 50% council tax premium. Properties empty for longer than two years will attract a 100% premium, with a 200% premium charged on homes empty more than 5 years.

The Welsh Government gives local authorities the power to charge, or vary, a council tax premium of up to 300% above the standard rate on second homes and long-term empty properties.

At present, Carmarthenshire Council does not apply a council tax premium scheme; second homes and long–term empty properties are charged at the standard council tax rate.  

Currently, half the local authorities in Wales apply a premium scheme with the level set by each authority varying from 25% to 100%. 

Cabinet Member for Resources, Cllr Alun Lenny said: “There are over 800 second homes in Carmarthenshire and 1,800 houses that have been empty for at least over a year – and a number for many years. Both categories of properties have an adverse effect on local communities.

“The intention of introducing a premium on second homes and long term empty houses is to either encourage greater use of these properties, or ensure that their owners contribute more towards our communities. 

“In the case of the long-term empty houses, they have a negative effect on streets, can be the target of vandalism, and are a waste of a resource.

“In our consultation, 61% of respondents agreed that long-term empty housing adversely affects local communities, and a majority agree with charging a premium. 

“We intend to charge a 50% premium on houses that have 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 answer lies, in part, in the legislation passed by Welsh Government in 2014 which has recently been amended and strengthened. The legislation aims to ensure that second homes, which are holiday lets, either get quality use by being let for at least 182 days a year, which will boost the tourism industry – or that owners pay a premium on the council tax as a contribution towards alleviating the negative impact second homes can have.

“As a Council, we want to tackle this problem in a measured and reasonable way. We’re proposing to charge second homes a 50% premium to start, with a view to raising it to 100% in April 2025. In addition to the seven exemption classes, stipulated in the legislation, we will also consider any other valid reasons for exemptions.

“By the year 2025/26, the total premium for both classes could potentially raise anything up to £3m, or release houses to become homes for Carmarthenshire residents, depending on the response of owners. These additional funds would be a valuable contribution towards helping the County Council maintain essential services at a time of great financial pressure – although, I must emphasise, that the primary aim is to encourage better use of housing in our county.”

(Lead image: Carmarthenshire Council)