Agenda item

To submit the report of the Cabinet Member for Finance.

The following was agreed for the 2026/27 financial year:

·       That Cyngor Gwynedd allows NO discount on class A second homes, in accordance with Section 12 of the Local Government Finance Act 1992 (i.e. no change).

·       That Cyngor Gwynedd allows NO discount and RAISES A PREMIUM OF 150% on class B second homes, under Section 12B of the Local Government Finance Act 1992 (i.e. no change). 

·       That Cyngor Gwynedd allows NO discount on homes that have been empty for 6 months or more and RAISES A PREMIUM OF 150% on homes that have been empty for 12 months or more, under Section 12A of the Local Government Finance Act 1992) (i.e. increase the premium from 100% to 150%).

The report was submitted, noting in line with the Local Government Finance Act 1992 that an annual decision was needed on charging a council tax premium. It was explained that if no decision was made, then they would be forced to offer a discount of 50%. The current situation was noted, i.e. that a premium of 150% was payable on second homes, and 100% on long-term empty properties, and that this had been the case since April 2023. The officer stated that the money being raised through the premium had been used for housing schemes.   

It was highlighted that the number of long-term empty properties had remained high, with around 1120 long-term empty properties in June 2025. It was expressed that the department had looked at the experiences of other counties and that it had strongly highlighted that a premium of 150% was most effective to get houses back into use, and as a result it was noted that this was one of the recommendations in the decision sought. 

The Cabinet Member took the opportunity to respond to some of the comments he had received during the day, e.g. he emphasised that there was no council tax payable when working through probate, or for 6 months following the decision. Attention was also drawn to the exemption system that was now in place in the Council. 

Members were given an opportunity to ask questions and offer observations.  

An enquiry was made on taking an individual vote on each clause; however, it was explained that it was a single decision within the process and that the only way to adapt the clauses was by proposing an amendment to the whole proposal. 

It was expressed that charging a premium on second homes was not intended to place an unfair financial burden on locals who let houses to visitors on a small-scale; however unintentional harm had been caused to these families from a decision that was made without fully considering them; and they faced huge, unexpected bills out of the blue. Assurances were sought that it would be possible to refine the exemption policy to incorporate these types of cases at pace, as some of these were a perfect example of sustainable tourism. 

It was highlighted that two things were missing in terms of information about empty homes; the reasons why they were empty, as well as the Exemption Policy. The need for an exemption policy from the outset was expressed, as there were situations and circumstances where there was no reason to charge a tax, such as renting rooms within homes. It was noted in response that the Exemption Policy was now in place since the introduction of Council Tax, such as individuals going into care homes. It was expressed that the Revenues Service does not collect information on why properties are empty as there is no reasons to do so,  but that the Housing Department was carrying out research into this and to see how people could be assisted to bring houses back into use. 

Concern was expressed about charging 150% for empty properties as this affected individuals who were working to upgrade houses and that 12 months was not enough to complete the work. It was noted that having an exemption policy which allowed for an extension to the statutory 12-month period, would alleviate concerns.   

Comments were raised about business rates and the impact that this would have on businesses such as hotels, but it was noted that this was a Government decision, not a Council decision. 

It was emphasised that charging a premium on empty houses to 150% was not intended as a money-making scheme; rather it was an attempt to bring houses back into use. It was explained that the staff in the Finance department were available to discuss and to give a fair hearing for individuals to appeal. 

RESOLVED 

The following was agreed for the 2026/27 financial year:  

• That Cyngor Gwynedd allows NO discount on class A second homes, in accordance with Section 12 of the Local Government Finance Act 1992 (i.e. no change).  

• That Cyngor Gwynedd allows NO discount and RAISES A PREMIUM OF 150% on class B second homes, under Section 12B of the Local Government Finance Act 1992 (i.e. no change).   

• That Cyngor Gwynedd allows NO discount on homes that have been empty for 6 months or more and RAISES A PREMIUM OF 150% on homes that have been empty for 12 months or more, under Section 12A of the Local Government Finance Act 1992) (i.e. increase the premium from 100% to 150%).