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Council Tax premium 'not enough to return homes to rental sector'

Council tax premiums being considered in Wales would be insufficient to persuade short let and holiday home owners to move their properties into the mainstream rental sector.

That’s the view of Propertymark in its response to a Welsh Government consultation.

The Welsh Government proposals look at the possibility of councils having additional powers giving them the discretion to charge up to 100 per cent premium - that is, double the full rate - on council tax for second homes and charge more than 100 per cent premium on council tax for second homes and long-term empty homes.


An earlier consultation saw 79 per cent of respondents feeling that council tax premiums would have very little or no effect in tackling housing issues; Propertymark says the same would happen if there was a new survey now.

Propertymark says: “Empty homes are often empty for a reason and the current incentives to let a second home as a holiday let (rather than offer it in the PRS) outweigh the additional council tax premium. Many of our members expressed that building new homes, for the social and private rented sectors as well as for homeowners, would be more effective than converting existing stock.”

The trade body says that across the UK the number of empty and second homes has risen considerably in the past decade.

  • icon

    Look to Wales to see what Labour will do if they ever gain power in England.


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