Janet Finch-Saunders AM: Empty Home Council Tax Premiums ‘a wealth tax’
The Housing (Wales) Act 2014[1] allows local authorities to charge up to 100% premium on the standard rate of council tax for long-term empty properties (12 months or more), and second homes, from April 2017.
There are an estimated 32,000-34,000 empty properties in Wales[2] – 10,000 more than the 23,000 empty properties estimated by the Welsh Government[3]. Yet the Welsh Government’s own strategy, ‘Houses into Homes’ has converted just 7,560 empty or derelict properties in four years. Although Welsh Conservatives broadly support the strategy, they believe that the Welsh Government’s strategy lacks ambition, as often it is a case of understanding why a home is empty.
With a number of Welsh local authorities seeking to impose such premiums in the next financial year, Janet Finch-Saunders AM, Shadow Secretary for Local Government, has expressed her concerns over such a move.
Janet said: “Welsh Labour’s empty home premium is a wealth tax. It will not provide additional supply for people who need affordable homes. It does not protect those in tiered accommodation, nor does it protect people whose main home may be in Wales.
“These proposals give too narrow a viewpoint on the issue of empty properties. Every empty home its own story to tell: in some cases, a family may be finding difficulty in selling on the home of a late relative – a situation which may already be causing stress and concern. Others may be developing a ‘run-down’ property and finding that the works take more than a year to complete.
“The key is for Empty Homes Officers to understand why it is empty and to work closely with the owner to bring it back to use. This is the case in Denbighshire, where it is the top authority in England and Wales for bringing empty properties back into use[4].
“These proposals also threaten second home owners. The Act fails to recognise that second home owners are already paying full council tax for local services they are not present for. Welsh Conservatives have long called for clarity on the definition of a second home; yet still this remains glaringly absent.
“The current ambiguity will lead to differing approaches and confusion across Wales.
With the premiums being proposed by local authorities across Wales varying between 0% - 100%, the introduction of the higher premiums may see displacement to those authorities charging less.
Second home owners often already own their main home in Wales. And many choose to visit other parts of our beautiful country on a very regular basis, bringing much-welcomed investment to boost our local economies. Increasing council tax premiums to such an extent is unfair and further taxes those who are already investing here in Wales. There is a danger that those second home owners who have put their life savings into realising their dreams will be penalised and hit hardest.
“If Labour Ministers genuinely want to improve the Welsh housing market, they should also be engaging with housing providers and identifying and removing the barriers to increased activity.
“We need an Empty Homes Strategy to will run alongside a broader package of reforms for house building and renting in Wales – including working with social landlords to target areas where market supply can’t meet need, working with the private rented sector to develop social letting agencies as social enterprises to meet the needs of the hardest to home, as well as protecting ‘Right to Buy’, thereby releasing more capital to build social homes.
“The Welsh Government’s Social Housing Stock and Rents report recently highlighted the lack of social rented housing stock, which has seen a pitiful increase across Wales since 2011. In the first three Assembly terms, Welsh Labour cut the number of new social rented homes by a whopping 71%, and recovery in this area is still painfully slow. Local Authorities need to focus on these problems, rather than the folly of exorbitant Council Tax Premiums.”
ENDS
Notes:
A Conwy County Borough Council consultation on proposals to introduce a 100% premium on such properties within the county was recently extended by 4 weeks, ‘due to the unprecedented response rate’ – indicating a high level of public concern on this issue. (http://www.conwy.gov.uk/doc.asp?cat=6425&doc=37591&Language=1)
Anglesey and Ceredigion Councils have approved a decision to levy a 25% premium on such properties.
Powys, Flintshire, Pembrokeshire and Wrexham Councils have approved a decision to levy a 50% premium on such properties.
[1] s139 Housing Wales Act 2014, inserting s12A into the Local Government Finance Act 1992
[2] Welsh Conservative FOI; Mark Isherwood AM, RoP, February 2013
[3] Welsh Government, Houses into Homes Strategy, 29 October 2015
[4] Mark Isherwood AM, Record of Proceedings, January 2014
Empty Home Council Tax Premiums ‘a wealth tax’
The Housing (Wales) Act 2014[1] allows local authorities to charge up to 100% premium on the standard rate of council tax for long-term empty properties (12 months or more), and second homes, from April 2017.
There are an estimated 32,000-34,000 empty properties in Wales[2] – 10,000 more than the 23,000 empty properties estimated by the Welsh Government[3]. Yet the Welsh Government’s own strategy, ‘Houses into Homes’ has converted just 7,560 empty or derelict properties in four years. Although Welsh Conservatives broadly support the strategy, they believe that the Welsh Government’s strategy lacks ambition, as often it is a case of understanding why a home is empty.
With a number of Welsh local authorities seeking to impose such premiums in the next financial year, Janet Finch-Saunders AM, Shadow Secretary for Local Government, has expressed her concerns over such a move.
Janet said: “Welsh Labour’s empty home premium is a wealth tax. It will not provide additional supply for people who need affordable homes. It does not protect those in tiered accommodation, nor does it protect people whose main home may be in Wales.
“These proposals give too narrow a viewpoint on the issue of empty properties. Every empty home its own story to tell: in some cases, a family may be finding difficulty in selling on the home of a late relative – a situation which may already be causing stress and concern. Others may be developing a ‘run-down’ property and finding that the works take more than a year to complete.
“The key is for Empty Homes Officers to understand why it is empty and to work closely with the owner to bring it back to use. This is the case in Denbighshire, where it is the top authority in England and Wales for bringing empty properties back into use[4].
“These proposals also threaten second home owners. The Act fails to recognise that second home owners are already paying full council tax for local services they are not present for. Welsh Conservatives have long called for clarity on the definition of a second home; yet still this remains glaringly absent.
“The current ambiguity will lead to differing approaches and confusion across Wales.
With the premiums being proposed by local authorities across Wales varying between 0% - 100%, the introduction of the higher premiums may see displacement to those authorities charging less.
Second home owners often already own their main home in Wales. And many choose to visit other parts of our beautiful country on a very regular basis, bringing much-welcomed investment to boost our local economies. Increasing council tax premiums to such an extent is unfair and further taxes those who are already investing here in Wales. There is a danger that those second home owners who have put their life savings into realising their dreams will be penalised and hit hardest.
“If Labour Ministers genuinely want to improve the Welsh housing market, they should also be engaging with housing providers and identifying and removing the barriers to increased activity.
“We need an Empty Homes Strategy to will run alongside a broader package of reforms for house building and renting in Wales – including working with social landlords to target areas where market supply can’t meet need, working with the private rented sector to develop social letting agencies as social enterprises to meet the needs of the hardest to home, as well as protecting ‘Right to Buy’, thereby releasing more capital to build social homes.
“The Welsh Government’s Social Housing Stock and Rents report recently highlighted the lack of social rented housing stock, which has seen a pitiful increase across Wales since 2011. In the first three Assembly terms, Welsh Labour cut the number of new social rented homes by a whopping 71%, and recovery in this area is still painfully slow. Local Authorities need to focus on these problems, rather than the folly of exorbitant Council Tax Premiums.”
ENDS
Notes:
A Conwy County Borough Council consultation on proposals to introduce a 100% premium on such properties within the county was recently extended by 4 weeks, ‘due to the unprecedented response rate’ – indicating a high level of public concern on this issue. (http://www.conwy.gov.uk/doc.asp?cat=6425&doc=37591&Language=1)
Anglesey and Ceredigion Councils have approved a decision to levy a 25% premium on such properties.
Powys, Flintshire, Pembrokeshire and Wrexham Councils have approved a decision to levy a 50% premium on such properties.
[1] s139 Housing Wales Act 2014, inserting s12A into the Local Government Finance Act 1992
[2] Welsh Conservative FOI; Mark Isherwood AM, RoP, February 2013
[3] Welsh Government, Houses into Homes Strategy, 29 October 2015
[4] Mark Isherwood AM, Record of Proceedings, January 2014
