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Property investors with long-term empty properties in Wales have been billed nearly £3 million after a new council tax measure came into force.
Cardiff is among several local authorities in Wales that have increased council tax rates by up to 400 per cent on some empty homes.
Since then, almost a thousand empty homes in the Welsh capital have received demands for more tax.
Owners of homes that have stood empty for more than a year are charged a 200 per cent premium, while those empty for more than two years must pay a 300 per cent premium, and those empty for more than three years face a 400 per cent premium.
A long-term empty home is a property that has stood unoccupied for more than 12 months while substantially unfurnished.
Unoccupied means the property is not anyone’s main home, while substantially unfurnished means the property only has carpets, curtains, and fixtures, like kitchen units.
The tax encourages owners to sell or refurbish their props so that they become homes again.
A council spokesperson said, “The council first introduced a council tax premium rate in 2019 to encourage individuals to bring long-term empty properties back into occupation. The rate then was 50 per cent and has risen over the years.
“To help tackle the housing emergency in the city where there is a lack of good quality, affordable homes, further increases were introduced earlier this year.”
At the end of May, Cardiff had 853 long-term empty homes unoccupied for more than a year, 406 empty for more than two years, and 252 for three years or longer.
While these homes are empty, the city has 1,028 single people in temporary accommodation, 122 families living in hotels and 595 families in temporary homes.
Other properties charged a 200 per cent council tax premium include holiday lets and second homes.
Council tax premiums are not charged under certain circumstances, such as when the property is for sale or empty while someone in the armed forces is away from home.
Tax rules and premium penalties vary between local authorities, so always check the area where the property is located to find out what charges may apply.