Empty property owners face up to 300% Council Tax premium

Powys County Council is proposing changes to its Council Tax Premium scheme for long-term empty properties as part of a wider effort that it says will bring homes back into use, regenerate communities and increase the supply of housing across the county.

Following feedback from the recent Council Tax Premium Scheme for Long-term Empty Properties consultation, the proposals will be considered by Cabinet before being referred to Full Council for a decision.

The council currently applies a Council Tax Premium to properties that have been empty for more than one year. Under the proposed new stepped approach, owners of long-term empty properties would continue to pay a 100% premium after one year, rising to 200% after five years and 300% after 10 years.

The changes are intended to encourage owners to bring properties back into use while supporting the council's wider priorities around housing, community regeneration and tackling homelessness.

The council claims that “many” towns and communities have raised concerns over a number of years about the impact of long-term empty buildings on local high streets and neighbourhoods. It added that bringing them back into occupation can help meet housing demand, increase footfall in town centres, improve the appearance of communities and make better use of existing buildings.

The council is also proposing that additional income generated through the premium is reinvested into activity that supports owners to bring empty properties back into use and increases access to housing. This could include expanding work to tackle empty homes, supporting housing regeneration projects and helping to reduce pressures on temporary accommodation services.

Housing services have highlighted the significant demand for smaller homes across Powys, with more than half of households on the Common Housing Register requiring one-bedroom accommodation. Empty homes often represent the type of housing that is most urgently needed, particularly in town centres and established communities.

Cllr David Thomas, Cabinet Member for Finance and Corporate Transformation and Cllr Matthew Dorrance, Deputy Leader and Cabinet Member for a Fairer Powys, explained that these proposals are about much more than raising revenue: “Our focus is on bringing long-term empty properties back into use so they can once again contribute to thriving communities across Powys.

“Too many homes have been standing empty for years while there is significant demand for housing. We want to encourage owners to take action and ensure that homes which have been vacant for long periods are put back into productive use.

“By linking the premium to investment in empty homes work and housing initiatives, we can support community regeneration, help tackle housing pressures and create more opportunities for people to live in the towns and communities they want to call home.

“This approach supports our vision of a Stronger, Fairer, Greener Powys by making better use of existing buildings, increasing housing supply and helping to create vibrant and sustainable communities for the future.”

The proposals will be discussed by Cabinet on September 22 before being considered by Full Council in October.