Second homes council tax can be put up to 300%

THE maximum level of council tax for second homes in Wales has been tripled by the Welsh Government.

From April 2023, 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%.

The current 100% was paid on more than 23,000 properties in Wales last year, according to the Welsh Government.

Councils will be able to decide the level they feel is appropriate for their circumstances and will be able to set the premium at any level up to the maximum.

Councils will also have the option to apply different premiums to second homes and long-term empty dwellings.

The measures will seek to address the issue of second homes and unaffordable housing facing many communities in Wales, as set out in the Co-operation Agreement between the Welsh Government and Plaid Cymru.

Currently, properties that are available to let for at least 140 days, and that are actually let for at least 70 days, will pay rates rather than council tax. The change will increase these thresholds to being available to let for at least 252 days and actually let for at least 182 days in any 12-month period.

The change is intended to provide a clearer demonstration that properties are being let regularly as part of genuine holiday accommodation businesses making a contribution to the local economy.

Both changes follow a consultation process, including businesses, the tourism industry and local communities, the Welsh Government has said, and are said to represent more steps taken to ensure people can find an affordable home in the place they have grown up.

Rebecca Evans, Minister for Finance and Local Government, said: “These changes will give more flexibility to local authorities and provide more support to communities in addressing the negative impacts that second homes and longterm empty properties can have.

“We will continue to make every effort to increase the supply and availability of houses, as shown by the £1bn of funding to build 20,000 low-carbon social homes, contained in the budget last year.”

Last summer the Welsh Government outlined a three-pronged approach to address the impact of second-home ownership faced by Welsh communities.

This seeks to address the affordability and availability of housing, amend the regulatory framework and system, and ensure second-home owners make a fair and effective contribution to the communities in which they buy.

Sian Gwenllian MS said: “It is clear that we as a country are facing a housing crisis. So many people cannot afford to live in their local areas.

“These changes will make a difference, enabling councils to respond to their local circumstances, and start to close the loophole in the current law. It’s a first, but important, step on a journey towards a new system that ensures people have the right to live in their community.

“Through the Co-operation Agreement, we are committed to introducing a package of measures to tackle the injustices in the housing market. Today’s announcement is just one part of that wider package.

“Second homes are a symptom of a wider problem: a market that treats property not as a home, but as a way of making a profit. By working across the parties in the Senedd, we will introduce more measures, as soon as we can, to make house prices and rents genuinely affordable for people.”