A council’s bid to force second home owners to sell up appears to have backfired in a Welsh county. Ceredigion County Council had hoped a council tax premium of 150% would discourage second home ownership, but numbers in the county only dropped by 16 over the last two years.

Despite the apparent flop, the local authority has acknowledged the high number of second home owners has helped prop up its coffers. An estimated £900,000 budget shortfall this financial year is said to be offset thanks to second home owners.

A report put to the council’s cabinet states and cited by the Daily Telegraph notes: “Behavioural change was expected as a result of the increased levels of council tax premium, as the overriding policy intention was to bring properties back into permanently occupied residential use.

“However, the current trends are still not showing the overall level of decrease that had been assumed when setting the budget.

“It is therefore highly likely that there will continue to be a temporary financial benefit until the policy approach starts achieving its intentions.”

Official figures show there were 1,632 second homes in Ceredigion as of July, compared with 1,648 in October 2023.

Ceredigion imposes a 150% council tax premium on second homes.

The aim of such premiums is to reduce the number of second homes and empty properties to boost the supply of housing for locals and first-time buyers.

While Ceredigion has seen the overall tax burden increase, it has also seen a falling collection rate as more families struggle to pay.

The tax collection rate across the county was 98.8% in 2022-23, but this year it dropped to 96.3%, according to the Telegraph.

In England, a number of second home owners have to pay double the amount of council tax after local authorities were granted powers to charge up to 100% more on furnished homes not used as a main residence.

Councils in Scotland also have powers to charge up to double the full council tax rate on second homes.

Local authorities have to give at least a year’s notice before introducing a second homes council tax premium for the first time.

Ceredigion County Council has been approached for comment.