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  • Agenda item

    COUNCIL TAX PREMIUM ON EMPTY HOMES AND SECOND HOMES

    • Meeting of The Council, Thursday, 8th December, 2016 1.00 pm (Item 10.)
    • View the declarations of interest for item 10.

    To consider the report of the Leader  (attached).

    Minutes:

    The Leader submitted a report which requested:

     

    ·         Formal confirmation for 2017/18 of previous decisions not to allow any discounts for second homes and to disallow discounts on empty properties.

    ·         Formal confirmation for 2018/19 not to allow any discounts for second homes and to disallow discounts on empty properties, and asked the Council to decide whether additional Council Tax would be charged on these properties.

     

    The Cabinet's recommendations to the Council (paragraph 7 of the report) that included a recommendation to charge a premium of 50% on second homes and empty properties for the 2018/19 financial year.

     

    An amendment was proposed and seconded to accept the Cabinet's recommendations with an additional clause noting that the Council's intention would be to use a percentage of the money received from charging a premium to provide housing for the young people of our communities.

     

    During the discussion, a number of members expressed their support to the recommendations, and the following observations were noted:

     

    ·         The importance of maximising income and bringing empty houses back into use.

    ·         Concern that the legislative context allowed people to convert empty houses into self catering units paying business rates and the need for more policing and continue to lobby Welsh Government on that.

    ·         There was a need to ensure that the Council would not shoulder the cost of collecting waste from properties that had been converted into business houses.

    ·         This Council was eager to contribute towards Welsh Government's aim of creating 20,000 affordable housing.

    ·         People who owned houses but could not afford to refurbish them to let out should not be punished.

    ·         There were 2000 people on the waiting list for housing in Gwynedd and many more than needed a house, but saw no purpose in even going on the list.

    ·         It was not believed that there was any evidence to show that introducing a premium would have an impact on the tourism industry, and that a positive message needed to be reinforced that Gwynedd was a good place for tourists.

    ·         If tourists would not wish to pay the additional tax, maybe they could consider staying in hotels or supporting local B&Bs.

    ·         An arms length company could be established to buy houses on the open market in order to let them out to local people.

    ·         A group should be formed, through the relevant scrutiny committee and Cabinet Members, to give consideration over the next year to what was wished to be achieved and how best to do that, not only in the housing field, but in the economy field and other services as well.

    ·         Economic imbalance was at the core of all of this and that, by now, the Council had an opportunity to use its taxation power to do the right thing about the situation.

     

    Some members noted that they would be supportive of charging a 100% premium and there was also a call for introducing legislation that required planning permission to be obtained to convert a house into a summer house.

     

    Other members noted that the owners of holiday homes contributed to the local economy and they had concerns that charging any premiums on second homes could create the impression that the Council did not welcome tourists to the county.

     

    A registered vote was called for on the amendment and over a quarter of members voted in favour of that.

     

    In accordance with Procedural Rules, the following vote was recorded on the amendment noted below:

     

    In favour of the amendment: (45) Councillors - Craig ab Iago, Annwen Daniels, Anwen Davies, Lesley Day, Dyfed Edwards, Elwyn Edwards, Trevor Edwards, Thomas Ellis, Alan Jones Evans, Aled Evans, Dylan Fernley, Simon Glyn, Gareth Wyn Griffith, Selwyn Griffiths, Alwyn Gruffydd, Chris Hughes, John Brynmor Hughes, Jason Humphreys, Aeron M. Jones, Anne Lloyd Jones, Charles W.Jones, Dyfrig Jones, Elin Walker Jones, Eric Merfyn Jones, John Wynn Jones, Dilwyn Lloyd, Dafydd Meurig, Dilwyn Morgan, Edgar Wyn Owen, Michael Sol owen, W. Roy Owen, Gareth A. Roberts, John Pughe Roberts, W. Gareth Roberts, Mair Rowlands, Gareth Thomas, Glyn Thomas, Ioan Thomas, Hefin Underwood, Ann Williams, Eirwyn Williams, Elfed Williams, Hefin Williams, John Wyn Williams and Owain Williams.

     

    Abstentions: (3) Councillors: Eryl Jones-Williams, Beth Lawton and Dewi Owen.

     

    Against: (1) Councillor Mike Stevens.

     

    RESOLVED

    (a) For the 2017/18 Financial Year:

     

    (1)     That Gwynedd Council allows NO discount under Section 12 of the Local Government Finance Act 1992 to the two classes of second homes (classes A and B), as defined in the Council Tax (Prescribed Class of Dwellings) (Wales) Regulation 1998.

    (2)     That Gwynedd Council allows NO discount in 2017/18 in respect of empty homes (class C).

     

    (b) For the 2018/19 Financial Year:

     

    (3)     That Gwynedd Council allows NO discount on class A second homes for 2018/19, in accordance with Section 12 of the Local Government Finance Act 1992.

    (4)     That Gwynedd Council allows NO discount and RAISES A PREMIUM OF 50% on class B second homes for class B second homes for 2018/19, in accordance with Section 12B of the Local Government Finance Act 1992.

    (5)     That Gwynedd Council allows NO discount and RAISES A PREMIUM OF 50% on homes that have been empty for 12 months or more for 2018/19, in accordance with Section 12A of the Local Government Finance Act 1992.

    (6)     That the Council's intention would be to use a percentage of the money received from charging a premium to provide housing for the young people of our communities.

     

     

    Supporting documents:

    • Council Tax Premium on Long Term Empty Properties and Second Homes, item 10. pdf icon PDF 569 KB
    • Council Tax Premium - Appendix 1, item 10. pdf icon PDF 114 KB
    • Council Tax Premium - Appendix 2, item 10. pdf icon PDF 179 KB
    • Council Tax Premium - Appendix 3, item 10. pdf icon PDF 424 KB
    • Council Tax Premium - Appendix 4, item 10. pdf icon PDF 145 KB