The council can charge a premium on the standard rate of Council Tax for long-term empty homes and second homes.
Council Tax premium: what it is
From 1 April 2017, local authorities are able to charge a premium of up to 100% of the standard rate of Council Tax on long-term empty homes and second homes.
The Housing (Wales) Act 2014 introduced discretionary powers to local authorities to implement a premium on Council Tax for long term empty properties and properties, which are furnished but are not permanently occupied (more commonly referred to as second or holiday homes).
The discretion given to local authorities to charge a premium is intended to be a tool to help local authorities to:
- bring long-term empty homes back into use to provide safe, secure and affordable homes
- support local authorities in increasing the supply of affordable housing and enhancing the sustainability of local communities
How much premium costs
Currently, the council charges a premium of:
- 100% in addition to the full Council Tax charge, that is, 200% with regard to long term empty property
- 75% in addition to the full Council Tax charge, that is, 175% with regards to a second home until 31 March 2024.
- 100% from 1 April 2024 onwards - 200%.
There are some exceptions to the premium that may apply:
- Class 1: Dwellings being marketed for sale - this exception is time-limited for one year.
- Class 2: Dwellings being marketed for let - this exception is time-limited for one year.
- Class 3: Annexes forming part of, or being treated as part of, the main dwelling.
- Class 4: Dwellings which would be someone’s sole or main residence if they were not residing in armed forces accommodation.
- Class 5: Occupied caravan pitches and boat moorings.
- Class 6: Seasonal homes where year-round occupation is prohibited.
- Class 7: Job-related dwellings.
If you believe you are eligible for an exception listed above please contact us.
If your property does not qualify for an exception
The council does have schemes in place if your property remains a second home or long term empty property.
If you would like to work with the council to bring the property back into full-time use, we may be able to help you.
How the money collected from Council Tax premiums is spent
Financial year 2022 to 2023
Income from charging a premium on long term empty properties
Number of long term empty properties: 431
Income from premium on long term empty properties: £595,142.23 (less £59,116.34 which relates to adjustments from the year before)
Income from charging premium on furnished properties that are no-one's sole or main residence
Number of furnished properties that are no-one's sole or main residence (often known as second homes): 2553
Income from premium on furnished properties that are no-one's sole or main residence: £2,279,987.69 (less £101,878.26 which relates to adjustments from the year before)
Local housing needs
Like most council income, the sums raised from charging Council Tax premiums are not required to be ring fenced to a specific purpose. However, local authorities are encouraged by Welsh Government to use any additional revenue generated to help meet local housing needs, in line with the policy intentions of the premiums.
Local housing needs within Anglesey cover several functions including support for the homeless, improvement of current housing stock and building new council homes we can rent to those who wish to become our tenants.
Spending on issues related to housing and homelessness is of course not just limited to the role of the housing department. Other departments will also be involved, such as social services.
The council’s budget is published annually and contains details of all spending so and the amounts spent on homelessness related issues will be included.
The amount collected in Council Tax premiums only contributes to the overall spent on housing related needs and does not reflect the entire spend on those issues.
An indicator of the amounts spent
In the financial year 2022 to 2023, £696,000 raised through the Council Tax Premium was ring-fenced for housing schemes which saw 28 households receiving a grant to buy their first home and funding the role of an empty home officer.
There is no direct link between what the council collects in Council Tax premiums and the greater amount which is actually spent on housing related issues.