Council tax premium for long-term empty properties and second homes

Welsh Government brought in legislation giving power to Local Authorities in Wales to charge a premium on Council Tax for long term empty properties and second homes. 

Councils in Wales were given the powers to charge homeowners up to 300% extra Council Tax on long-term empty homes and second homes.

The purpose of council tax premium is to:

• encourage homeowners not to leave their properties empty
• increase affordable housing
• benefit the local community and economy

At the Full Council Meeting on 5 September 2023, elected members from Denbighshire County Council agreed to increase the Council Tax premium on Long Term Empty Homes and Second Homes as follows:

• From 1 April 2024:
  • all long-term empty homes and second homes in Denbighshire will be charged 100% over the standard charge
  • all long-term empty homes which have been empty for a continuous period of 5 years or longer will be charged an additional 50% over the proposed increases. This means the charge for these properties will be 150% over the standard charge from 1st April 2024, and 200% over the standard charge from 1st April 2025.
• From 1st April 2025 all long-term empty homes and second homes in Denbighshire will be charged 150% over the standard charge
• Any extra funding generated is allocated for local communities, amenities and to tackle homelessness.

Long-term empty properties

A long-term empty property is a domestic property that is designed to be lived in (self-contained), and remains unoccupied and substantially unfurnished for a continuous period of at least 1 year. 

Second homes

A second home is a domestic property that is designed to be lived in (self-contained), is substantially furnished and is not a person's sole or main place of residence. 

Revenue raised from the Council Tax Premium

We will use the revenue from the Council Tax Premium to support the prevention of homelessness, tackling poverty, and projects that ensure our communities are sustainable.

The sums raised from the Council Tax Premium are not required to be ring fenced, however the additional revenue is available and used to support the policy intention to:

• prevent homelessness
• increase affordable homes and bringing long term empty properties back into use
• works to ensure communities are sustainable

Spending is not limited to housing, but to teams that, for example, support early intervention, and supporting vulnerable families.

Exceptions 

The council tax premium would not be charged under the following exceptions:

• Class 1: properties being marketed for sale - this exception is time-limited for 12 months.
• Class 2: properties being marketed for let - this exception is time-limited for 12 months.
• Class 3: annexes forming part of, or being treated as part of, the main property
• Class 4: properties which would be someone’s sole or main residence if they were not residing in armed forces accommodation
• Class 5 (this only applies to second homes): occupied caravan pitches and boat moorings
• Class 6 (this only applies to second homes): properties where a planning condition either:
  • restricts occupancy for a continuous period of at least 28 days in any 12-month period
  • specifies that the dwelling may be used only as a holiday let
  • prevents occupancy as a person's sole or main residence
• Class 7 (this only applies to second homes): job-related dwellings

Apply for an exception 

If you think your property falls into any of the exception classes, please contact us. You will need to provide evidence, such as one of the following:

• an estate agent's agreement or contract and the direct link to the agent's website showing your property is being advertised for sale or let
• a payslip showing Contribution in Lieu of Council Tax for Armed Forces personnel
• a planning reference number for annexes or properties with planning restrictions
• an employment contract for job-related dwellings

Class C exemption

The council tax Class C exemption is available for 6 months on properties that are substantially unfurnished and unoccupied. 

View information about discounts and exemptions.

More information

If you would like to bring an empty property back into full-time use, you may be entitled to help from the following:

• Empty Homes Assistance
• Houses into homes
• Landlord Offer