Valleys Council Considers Triple Tax for Long-Term Empty Homes

A Valleys council is considering making owners of homes that have been empty for more than three years pay treble the standard rate of council tax.
A proposal going before Rhondda Cynon Taf (RCT)’s cabinet on Thursday, September 19 also recommends charging double the standard rate of council tax on homes empty for between one and three years
It is proposed that the premium is set at 100% for those which have been empty for between one and three years so their liability would be double the standard rate of council tax.
The level of premium would then step up and be set at 200% for those properties which have been empty for more than three years (treble the standard rate of council tax).
The council report said in RCT there are 1,065 properties which have been empty up to six months, 608 from 7-12 months, 586 empty between one and two years, 247 between two and three years, 226 between three and five years and 459 have been empty for more than five years.
It is also proposed that the level of premium on second homes would
remain at 100%.
The proposal is that the changes to the premium for long term empty properties would be introduced and effective from April 2025.
The council would write to each home owner, once a decision is made, to advise them of the forthcoming changes.
The cabinet report said that where it becomes clear that there is no realistic prospect of an owner taking any action to enable reuse, then the council could take direct action to intervene.
This could include Compulsory Purchase Order (CPO) proceedings so it is being proposed that the council puts in place arrangements and processes
to consider the use of such powers in appropriate and specific circumstances in order to bring about that much needed change and reuse.
This will include consideration of partnering with registered social landlords.
The premium level changes would bring in additional revenue through the council tax of around £750,000 a year but this will be subject to review and confirmation based on exceptions.
Additional revenue raised would support the continuation of the council’s empty homes strategy, the report said.
Overall, 157 responses were received to the consultation and 53% were owners of empty properties in Rhondda Cynon Taf.
The consultation shows that 57.5% of all respondents disagreed with the proposal to charge a 100% premium for those properties empty between one and three years and 200% premium for properties empty for more than three years.
The report said that the majority of people who stated they were residents are more likely to agree (66.2%) than those responding directly as empty property owners (10.4%).
The most common reasons for disagreeing included individual circumstances, cost implications, renovations, sales/market and help/support.
The consultation also shows 59.8% of all respondents agreed with the proposal that the council should use powers such as compulsory purchase orders in specific circumstances and as a further intervention to bring long-term empty properties back into use and the majority of people who stated they were residents are more likely to agree with these proposals (76.9%) than empty property owners (40.3%).
The majority of residents who took part agreed with the proposal to increase
the premiums from April 1, 2025. (64.6%), with only 19.4% of empty
property owners agreeing.
The majority of residents agreed with the approach for the extra revenue to
support the continuation of the council’s empty homes strategy (66.2%),
compared with 22.4% of empty property owners.
From April 2017, councils in Wales have been able to charge higher amounts (a
premium) of up to 100% on top of the standard rate of council tax on second homes and long-term empty properties and from April 2023, this was increased to 300% by Welsh Government.
Whether to charge a premium on second homes or long term empty properties (or both) is a decision to be made by each council and there are some exceptions to the premiums.
In July, cabinet agreed to consult on the proposal to increase the level of council tax premium on long term empty properties currently being
levied in Rhondda Cynon Taf. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

By BBC LDRS ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​