Owners of second homes and long-term empty properties in Cardiff could face paying more council tax under a new proposal that is being considered by the council. If approved, the plans would see the existing premium on long-term empty properties increased to 100% from April 1 this year, and second home owners would be charged an 100% council tax premium from April 1, 2024.
It comes as Cardiff council said its council tax records show there are more than 3,200 second homes or furnished properties that aren’t anyone’s main home in the city. It said along with long-term empty dwellings - which are distinguished by their lack of furniture - these "are having an impact on housing availability".
From April 1, 2017, councils in Wales have been able to charge a premium of up to 100% on top of the standard rate of council tax on second homes and long-term empty properties. From April 1 this year, the regulations will be updated, following a Welsh Government consultation, to allow councils to charge a maximum premium of 300% on top of the standard rate of council tax.
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In 2019, Cardiff council introduced a premium of 50% for long-term unoccupied properties - that is, dwellings have been empty and substantially unfurnished for more than 12 months. This means that the owners of such properties are currently paying 150% council tax.
The council said the reason for the increase was to "try and encourage homeowners to bring properties back into occupation". But it said despite the additional premium charge, the number of these type of dwellings had actually increased since 2019.
Councillors are now considering whether to increase the current premium, to come into effect from April 1 this year to 100%. This means there would be a 200% charge on this type of property.
They are also considering whether to give notice to introduce a new premium to dwellings that are occupied periodically - that is, second homes or unoccupied furnished dwellings that are not anyone’s main home.
"So far, the Council has not opted to charge a premium on second homes/furnished dwellings that are not anyone’s main home therefore currently a 100% charge is made on these dwellings," the council said. This means second home owners would face a 200% council tax charge.
There are some properties which are exempt from premiums. These include:
- Those being marketed for sale or rent at reasonable prices (for a further year)
- Annexes forming part of a main dwelling
- Dwellings which would be a person’s main residence if they were not residing in armed forces accommodation
Some residences are already exempt from council tax, such as property requiring or undergoing structural repair for up to 12 months - these will not be subject to premiums.
Certain types of second homes are also exempt from premiums. They are:
- Occupied caravan pitches and boat moorings
- Seasonal homes where year-round occupation is prohibited
- Job-related dwellings
The council launched an online public survey on December 23 last year about the proposal and says it welcomes "views from interested parties". The consultation is open until January 29 and the council added: "The intention of this proposal is to bring long term empty homes back into use to provide safe, secure and affordable homes and to also support increasing the supply of affordable housing and enhancing the sustainability of local communities."
Following the results of the survey, the council will make its final decision on the proposal on March 2. The council said it intends to use is the additional income from the new council tax premiums for "housing purposes". It comes as the city finds itself in the throes of a housing crisis.
The council revealed in October last year that there were more than 8,200 people on the housing waiting list. The authority also revealed that it receives 400 new applications a month but only 1,600 properties each year become available to let.
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