Why do second homes pay a much higher council tax premium in Wales?

Full answer

Council tax premiums on second homes and long-term empty properties are set locally, but the maximum premium a council is legally permitted to charge differs significantly between Wales and England, reflecting different policy priorities around housing availability. Since 2023, Welsh local authorities have had the power under Welsh Government legislation to charge a premium of up to 300% of the standard council tax bill (meaning up to four times the normal charge in total) on second homes and homes empty for a long period, and several Welsh councils, particularly in areas with high concentrations of holiday homes such as Gwynedd and Pembrokeshire, have adopted premiums at or close to this maximum level, specifically to discourage properties being used only occasionally as second homes rather than as full-time housing for local residents. England permits a lower maximum premium, generally up to 100% (doubling the bill) for second homes from April 2025 onwards, and escalating premiums for properties empty for longer periods (rising further the longer a property remains empty, up to a much higher rate for homes empty ten years or more), following separate, less aggressive legislation than Wales's approach. Scotland similarly allows councils to charge up to 100% premiums on second homes and long-term empty homes, broadly in line with England's approach rather than Wales's more aggressive stance. Because these premiums are set individually by each local council within the legal maximum for their nation, the actual amount charged on any specific second home varies considerably depending on both which UK nation and which specific local authority the property is in, so owners of a second home should check their specific council's current policy directly rather than assuming a single UK-wide rate applies.