Issue - meetings

To submit the report of the Cabinet Member for Finance  (attached).

That the Council defers the decision with regards to permitting discounts and charging a premium, asking the Cabinet to consider the propriety of increasing the level by up to 100%. The Cabinet is requested to hold a consultation process on this basis, to consider the relevant factors, and to submit a further recommendation to the Council in March 2021 in accordance with Section 12, 12B and 12A of the Local Government Finance Act 1992.

The Cabinet Member for Finance, Councillor Ioan Thomas, presented a report asking the Council for formal confirmation for 2021/22, of the previous decisions not to give discounts to second homes and to disallow discounts on empty properties, and to raise a premium of 50% on such relevant properties.

In specific reference to second homes, the Cabinet Member noted:- 

·         That the provision and density of holiday homes had grown over recent years, together with the associated effect socially, economically and environmentally.

·         That the popularity of Gwynedd as a holiday destination and the use of holiday accommodation as a financial investment were factors, and a significant growth had been seen recently across the whole county in the number of residential units used as holiday accommodation.

·         That it was proposed to submit a research paper on managing the use of dwellings as holiday homes to the Communities Scrutiny Committee on 10 December, with specific recommendations to be discussed in the Cabinet on 15 December.

·         Although it was recognised that it would not be possible to implement those recommendations immediately, due to the need for legislation by the Welsh Government, the rate of the Premium on property was a matter that the full Council could act upon. 

·         There had been regular correspondence as well as formal and informal meetings between Gwynedd Council, ministers and officers from the Welsh Government, to discuss our concerns regarding the ability of second home owners to use Section 66 of the Local Government Finance Act 1988 to transfer their property from domestic property, paying Council Tax, to self-catering units, that are subject to non-domestic rates.

The Deputy Leader noted:-

·         That the recommendation proposed to continue with the existing situation to raise a premium of 50% on second homes and empty homes, however, it had become evident from discussions with members, proposals in the Council and public demands in our communities, that it was necessary to reconsider the Premium, with the intention to increase it.   

·         The situation in the county was critical, with housing stock being lost to second homes with local people unable to afford buying homes in their communities.

·         The Cabinet and the members had been pressing the Government to change the act and to give us powers to control second homes.   The Government had stated that we had no evidence to justify this, however, the evidence had not been published and would be discussed soon. 

·         In addition to discussing the research paper on managing the use of dwellings as holiday homes, the Cabinet on 15 December would discuss the Housing Action Plan, an ambitious and exciting plan that would invest approximately £77m in providing housing for young people in the county.  

·         Being aware of the strong feelings regarding this matter, he wished to make an amendment to delete the words "and raises a premium of 50% on class B second homes " in the second bullet point of the recommendation, by inserting the words " but deferring the decision regarding setting the Premium and to request that the  Cabinet  ...  view the full minutes text for item 9