In accordance with Sections 12A and 12B of the Local Government Finance Act 1992 as amended, the Council decided at its meeting of 9th March 2023 to use its discretionary powers to introduce council tax premiums.
From the 1st April 2024, long-term empty properties and second homes in the County will be subject to a Council Tax Premium – that is an additional amount of council tax to be paid on top of the normal council tax bill.
Why are premiums being introduced in Monmouthshire?
The discretion given to Councils to charge a premium is intended to be a tool to help Councils:
- bring long-term empty homes back into use to provide safe, secure and affordable homes
- support Councils in increasing the supply of affordable housing and enhancing the sustainability of local communities
The County is experiencing specific issues in respect of house prices, an increasing demand for affordable housing and the increased use of temporary accommodation. Any additional revenue generated from council tax premiums could be utilised to help address some of these issues in future.
Long Term Empty Properties
A long-term empty property is defined as a dwelling which is both unoccupied and substantially unfurnished for a continuous period of at least 1 year.
- Level of Premium
The Council has used its discretionary powers to impose a premium for long term empty properties on a sliding scale from 100% to 300%, effective from 1st April 2024. This means a 100% premium will apply to properties empty for one year; a 200% premium to properties empty for two years; and a 300% premium to properties empty for three years or more. An example of how this would affect an empty property is given below:
| Empty Property Period | Average Band D charge based on 2023/2024 charge | % Premium charged | Total Amount Payable |
|---|---|---|---|
| Empty for 12 months (1yr) | £1,959.94 | 100% | £3,919.88 (£1,959.94 charge and £1,959.94 premium) |
| Empty for 24 months (2yrs) | £1,959.94 | 200% | £5,879.82 (£1,959.94 charge and £3,919.88 premium) |
| Empty for 36 months (3yrs) | £1,959.94 | 300% | £7,839.76 (£1,959.94 charge and £5,879.82 premium) |
N. B furnishing or occupying the property for 1 or more periods of 6 weeks or less during the year will not affect a property’s status as a long-term empty dwelling. In other words, a person cannot alter a dwelling’s status as a long-term empty dwelling by taking up residence or installing furniture for a short period.
Second Homes
A second home is defined as a furnished property where no one lives, or the owner has a main home elsewhere.
- Level of Premium
A premium of 100% will be charged on second homes from 1st April 2024. An example of how this would affect a second home is given below. At the 9th March 2023 meeting, Council agreed to give further consideration to the impact on the local economy before introducing a second home premium. The outcome of this review was considered by Council on 18th January 2024. At this meeting it was decided to go ahead with the decision to charge a 100% council tax premium for second homes from 1st April 2024. Council also decided to use its discretionary powers, under Section 12B of the Local Government Finance Act 1992, to introduce a specific exception to help support businesses moving from the commercial list (Business Rates) to the domestic list (Council Tax). The exception will exempt these businesses from the second home council tax premium for a period of 12 months. During this time standard council tax will still be payable.
| Second Home | Average Band D Charge Based on 2023/2024 charge | % Premium charge | Total Amount Payable |
| All Second Homes from 01/04/2024 onwards | £1,959.94 | 100% | £3,919.88 (£1,959.94 charge and £1,959.94 premium) |
Help for long-term empty property owners
Through Monmouthshire Letting Service, you as an owner of an empty property or second home, can access a range of support to maximise your properties potential. Offering financial assistance through Empty Homes Grants and Home Improvement Loans, which are available to bring the property back in to a safe, habitable, and secure home. For further information please email emptyhomes@monmouthshire.gov.uk
The Council is looking for additional properties that can provide quality homes for local families, our Lettings Service provides opportunities to lease your property with no agency fees and a guaranteed monthly rental amount. For further information please email MLS@monmouthshire.gov.uk
Further information and advice can be found here:
Are there any circumstances where I would not have to pay the premium?
If you feel that your property should not be liable to a premium as it is occupied as some ones sole or main residence, you will need to complete the online form so we can update our records:
You will need to provide us with the full names of all adult occupiers, the date they moved in, as well as proof of residency (for example utility bills, tenancy agreement or driving license).
There are also a number of exceptions to the premium and these are explained in detail in the Welsh Government Guidance: Council Tax on empty and second homes | GOV.WALES
To apply for an exception, you will need to complete the online form :
Please ensure that you provide the evidence outlined above to support your application.