How is the money collected from Council Tax Premiums spent?

For the financial period 1st April 2024 to 31st March 2025:

• The number of Long-Term Empty properties = 340
• The number of Second Home Properties = 179
• The amount of income generated from charging a premium on these properties = £592,953

Like most council income the sums raised from charging Council Tax premiums are not
required to be ring fenced to a specific purpose. However, local authorities are
encouraged by Welsh Government to use any additional revenue generated to help
meet local housing need and circumstances within its area in line with the policy
intentions of the premiums.

These local housing needs within Merthyr Tydfil are referenced within the Housing
Support Programme Strategy 2022-2026 and covers diverse functions including support
for the homeless. By encouraging owners of empty houses and second homes to
consider alternative use of their properties, we can also encourage schemes such as
the private leasing scheme to bring back properties into use and increase the supply of
homes locally.

Spending on these related issues is of course not just limited to the role of the housing
department. Other departments will also be involved, such as social services and
environmental health.

Housing enforcement

The council tax premiums we have collected have allowed us to work with owners of
unoccupied properties to bring them back into use.

So far, we have been able to:

• Bring 43 properties back into use between 1st April 2024 and 31st March 2025 through:
  Signposting owners to the Houses to Homes loan scheme.
• Matching potential developers with empty property owners.
• Providing proof of empty status letters for VAT reduction on renovation costs.