Cyflwynwyd gan:Cyng / Cllr. Ioan Thomas
Decision:
It was
resolved to recommend to the Full Council in March that Gwynedd Council:
·
Allowed
no discount on class A second homes, in accordance with Section 12 of the Local
Government Finance Act 1992
·
Allowed
no discount and raised a premium of 100% on class B second homes, in accordance
with Section 12B of the Local Government Finance Act 1992
·
Allowed
no discount on homes that have been empty for 6 months or more and raised a
premium of 100% on homes that have been empty for 12 months or more, in
accordance with Section 12A of the Local Government Finance Act 1992.
Minutes:
The report was
submitted by Cllr Ioan Thomas
DECISION
It was resolved to recommend to the Full Council in March
that Gwynedd Council:
·
Allows no discount on class A second homes, in
accordance with Section 12 of the Local Government Finance Act 1992
·
Allows no discount and raises a premium of 100%
on class B second homes, in accordance with Section 12B of the Local Government
Finance Act 1992
·
Allows no discount on homes that have been empty
for 6 months or more and raises a premium of 100% on homes that have been empty
for 12 months or more, in accordance with Section 12A of the Local Government
Finance Act 1992.
DISCUSSION
The report was
submitted noting that the Full Council in December had resolved to defer a
decision on the Council Tax Premium on second homes and long-term empty
properties. It was noted that the Council had requested the Cabinet to hold a
consultation on the propriety of increasing the level up to 100% in accordance
with Section 12, 12B and 12A of the Local Government Finance Act 1992.
According to the
1992 Act, it was noted that any decision on the Premium must be made by the
Full Council before the commencement of the relevant financial year and, therefore,
it was not possible to delay the decision. The context was highlighted noting
the regulations of the Council Tax where 'second homes' had been categorised
into two classes (A & B) and that class C referred to empty properties. The
numbers within Gwynedd were reported - 811 within class A, 4,718 within Class
B, and 1,130 in class C in November 2020.
When giving
councils powers to raise a Premium of up to 100%, it was noted that the
Government had published statutory guidance to administrate the Premium. It was
added that the guidance outlined what needed to be considered by the Council
when proposing to introduce the Premium.
It was noted that when the Premium was introduced back in 2016,
attention had been given to two studies, a detailed analysis undertaken in 2013
along with the 2013-16 Housing Strategy. It was noted that the Council had now
adopted a new Housing Strategy and two key reports, namely Holiday Homes
Research Work and the Housing Action Plan.
The consultation
responses were outlined, noting that the consultation had been advertised on
social media and letters had been sent to every second home and long-term empty
property owner informing them of the consultation. 6,227 responses had been
received to the questionnaire and approximately 100 separate letters and
messages. From the responses, 41% stated that they did not own a second home,
53% noted that they owned a second home.
It was noted that
almost 4 in 5 respondents who owned a second home thought
that second homes had a positive impact on local communities, while 3 in 5
respondents who did not own a second home thought that they had a negative
impact on local communities. A clear difference of opinion was seen with the
question of whether it was appropriate to increase the level, with 61% of those
stating that they did not own a property that was the subject of the Premium
feeling that it was appropriate, while 95.5% of second home owners stated that
it was inappropriate.
Attention was drawn
to one of the very common arguments from owners who noted that they contributed
to the economic benefit of Gwynedd by shopping locally and giving work to local
traders. It was highlighted by some respondents that their second homes had
been in the possession of their family for a number of years, and that their
income was relatively low and that the Council Tax was not as affordable to
them as the general belief suggested. It
was highlighted that the evidence noted that second home Council Tax bands
tended to be higher than those of Gwynedd as a whole.
It was noted that
when the original decision had been made to charge a Premium, the risk was
identified of an increase in the number of properties transferring to being
self-catering holiday units, which were subject to non-domestic rates. A risk
was highlighted that increasing the Premium would incentivise more owners
to let their properties and transfer them to the non-domestic rating list. It
was noted that latest figures showed that a total of 2,106 properties had
transferred from the Council Tax list to the Non-domestic Rating list, and that
90% of these received full small business rates relief, which meant that no
local taxation was payable.. A high number of respondents noted that their
property had been inherited, and that they had no desire to start letting it
commercially.
It was highlighted
that recent experiences when administering Government Covid-19 business grants,
had shown that a number of individuals and companies were now buying properties
in Gwynedd specifically with the intention of converting them into
self-catering holiday units, rather than using them as a second home. It was
noted that properties that had transferred to self-catering holiday units since
1 April 2018 were in lower bands, and closer to the common picture of Gwynedd's
housing stock. It was emphasised that an average of over 400 properties a year
had been lost from the Council Tax bands, which was a loss of £286,000 of
Premium yield per annum.
When looking at
long-term empty properties, it was noted that some second home owners had noted
that there was a need to focus on increasing the Premium on long-term empty
properties, claiming that these were the real causes of social problems. It was
highlighted that the number of long-term empty properties was relatively low
compared to the number of second homes. In comparison with the second homes, it
was explained that long-term empty properties in Gwynedd tended to be in lower
Council Tax bands than the Gwynedd housing stock as a whole.
It was noted that
the Council, in accordance with the Well-being of Future Generations Act, had
adopted well-being objectives and it was emphasised that the Housing Strategy
was intertwined with the objectives. It was also highlighted that the Council
was confident that Members and officers had taken all reasonable steps to
ensure that any actions taken had been made in order to comply with legislative
requirements. It was also noted that an
Equality Impact Assessment had been prepared and there was a need to address
the findings and duties under the Equality Act 2010 when coming to a decision.
Observations
arising from the discussion
¾
It was noted that 11% of the county's housing
stock was now second homes and that the situation was worsening as a result of
a number of people working from home and, therefore, they did not have to
reside in the big cities. It was noted that there was a need to provide the
best county to our residents and tourists and, therefore, there was a need to
increase the Premium by 100% to ensure housing and support for Gwynedd
residents.
¾
It was noted that the Report on Second Homes in
Gwynedd had been submitted to Welsh Government, and the Minister had welcomed
the report and would undertake further research, and had also reminded the Council of the ability
to charge a Premium on Second Homes.
¾
It was noted that the report responded to a
housing crisis, but it was highlighted that visitors were needed to ensure that
the economy was thriving, in order for communities to benefit. Attention was
drawn to the observation that second homes benefited the economy, but it was
asked what would be the benefit should the dwelling be used on a full-time
basis?
¾
It was noted that the situation was complex and,
with long-term empty properties, it was highlighted that every case tended to
be unique and it may be an idea to have a conversation with owners to discuss
how it would be possible for empty properties to be brought back into use.
¾
Gratitude was expressed for the work and it was
noted that some observations from individuals alleged there was a racist
motive, but attention was drawn to the equality report, which highlighted that
the Premium was solely determined by the characteristics of properties, and not
the characteristics of individuals.
¾
Gratitude was expressed for the high number of
responses and sympathy was expressed to some individuals, but it was emphasised
that there was a housing crisis within the county. The principle that the
Council was eager for residents to have homes in their own communities was emphasised,
in order to ensure thriving communities. It was added that housing was a
priority and that it was a requirement to ensure additional resources in order
to implement the Housing Strategy.
¾
It was agreed to allow no discount and to raise
a premium of 100% on class B and class C second homes, and to allow no discount
on Class A second homes.
Awdur:Dewi Morgan
Supporting documents: