Debate on second home premium defered to next year

Increasing the second home and long term empty properties Council Tax premium is a discussion for next year – councillors have been told.

At a meeting of the Powys County Council’s Economy Residents and Communities scrutiny committee on Monday, January 27 councillors probed draft budget proposals for savings and costs in several council departments.

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The current Council Tax premium in Powys for second homes is 75 per cent and the long term empty properties premium is 100 per cent – which is double the normal bill.

Liberal Democrat Cllr Chloe Masefield who represents the ward of Crickhowell with Cwmdu and Tretower said: “Looking at the budget I was quite keen to see where we could increase income without increasing Council Tax for everyone.

“One of the things we have challenges with around here is second homes.

“I know we have a second home premium of 75 per cent.”

She explained that along with 2025/2026 this charge would not have gone up in three years.

Cllr Masefield said: “Having lots of second homes is not really a benefit to our communities.

“And long term empty properties, we don’t want so many of them when people don’t have homes.”

She wondered if the premiums could go up?

Finance portfolio holder, Labour’s Cllr David Thomas said: “That’s a debate we’ll have to have next year.

“But before you can make a change to any premium you have to give significant notice; I think it’s at least six months so it’s too late for this budget.

“It’s something we’ll certainly look at in the future, if there’s appetite for it.

He added that if a second home is let as holiday accommodation for a certain period of time the owner may be paying business rates rather than Council Tax.

Council leader, Liberal Democrat Cllr James Gibson-Watt said he would be keen to find out what the impact had been elsewhere in counties such as Gwynedd and Pembrokeshire where second and holiday homes are a political hot potato.

Liberal Democrat Cllr Raiff Devlin added “This requires very careful consideration and it’s important to know the impact that increasing charges would have.

“I don’t think we appreciate the contribution to the rural economy and local employment that holiday lets have.”

The 100 per cent premium on second homes was agree by the previous Conservative/Independent administration in 2022 and came into force in April 2023.

At the time it was hoped it would bring in an extra £350,000 into council coffers.

In November 2022, the Liberal Democrat/Labour coalition which formed the administration following the May 2022 local elections brought in the 100 per cent premium on long term empty properties which also came into force in April 2023.

It was supposed to encourage owners to sell them and bringing them back into use was supposed to help address the council’s housing waiting list.

At the time there were 982 long term empty properties.