Empty homes

Grants to help local homebuyers renovate empty house/second homes to an acceptable living standard. The property must have been empty or previously registered as a second home by Cyngor Gwynedd’s Tax Department for at least 6 months or more, and the applicants will need to have a connection with the local area.

Please ensure that you meet all the following criteria before applying for the grant.

• At least one applicant must meet one of the following criteria:
  • Having lived in Gwynedd for at least the past five consecutive years
  • Having previously lived in Gwynedd for a continuous period of ten years.
• Living in Gwynedd for 365 days a year for the fixed term (5 or 10 years) and Council Tax has been paid on the property occupied for that period (on the basis that the property is / has been permanently resided).
• The household income must not exceed the following:
  • of £60,000 for an individual
  • of £80,000 for a couple
• The mortgage must be at least 65% or more of the purchase price or value of the property if you are buying it privately.
• The property must be on Council Tax Band A, B, C or D. To check if a property qualifies for the grant, search for the Council Tax Band by going to the Council Tax: How much will I need to pay?(opens in new tab) (opens in new tab) page.
• The property must be registered as an empty property or second home for 6 MONTHS prior to purchasing the property.

*Please note – if you are purchasing the property privately, its value must be assessed by an estate agent or a registered RICS surveyor.*

Grants of up to £25,000 are available for homeowners or prospective homeowners to renovate empty houses to make them safe to live in and improve their energy efficiency.
To qualify for the grant, the property must have been registered as empty for a minimum of 12 months at the date of application, and the owner must meet the local connection criteria in Gwynedd.

Further information: National Empty Homes Grants (opens in new tab)

A scheme offering short term interest free loans mainly to de­velopers to bring empty and redundant dwellings back into residential use and/or the conver­sion of properties into dwellings. Schemes will be assessed in relation to local demand and impact.

Status and target group

• This type of assistance is DISCRETIONARY

Eligibility

• The assistance in the form of a loan is available to owners to bring empty properties back into use for sale or rent, but not for owner-occupation.
• Applicants for loans should not have an adverse credit CCJ/bankruptcy
• Loans can be offered to:
  • Individuals
  • Companies/businesses
  • Charities
• All works deemed necessary to bring the property back into residential use including the costs of conversion where properties are made into a number of separate/individual units of accommodation.

Conditions

• In the case of loans to return a property into use to sell, there is a maximum two year repayment period.
• In the case of loans to return an empty property into rental use, the loan repayment period is 5 years.
• Upon completion of works, properties must be available for rent or be sold.

Application

• Properties must have been vacant for more than six months
• If the loan does not cover the full costs of the works, evidence of adequate finance to ensure that the scheme is financially viable from the start.
• Applications must be supported by an independent RICS valuation and the Council to provide a local land search.
• Maximum loan of £35,000 per unit of accommodation up to a maximum of £150,000 per applicant.
• Loans will be secured as 1^st or 2^nd charge against the Land Registry title.
• Maximum of 80% loan to value - based on the current value and condition of the property offered as security.
• All loans will be offered interest free.

What to do next?

• Contact us to discuss the Expression of interest form(opens in new tab) (opens in new tab). An officer will arrange to visit the property to assess its suitability.

Who to Contact?

For more information please contact us:

• Online housing enquiry
• 01286 685100
• Housing Department, Cyngor Gwynedd, Stryd y Jêl, Caernarfon, Gwynedd, LL55 1SH

A short-term interest-free loan between £1,000 and £25,000 for Owner Occupiers, Landlords, Developers and Charities to make their home safe, warm and secure.

What's available?

• A discretionary loan of up to £25,000 to assist home owners in improving their standard of their property.
• Loans range from a minimum of £1,000 up to a maximum of £25,000 per unit of accommodation with a maximum of £150,000 per applicant at any time.
• There is a maximum 80% loan to value ratio –based on the current market value and condition of the property offered as security. The loan is available if the mortgage and any secured loan(s) combined do not exceed 80%of the home’s current value, eg if the property is worth £100,000 and you have 70%mortgage, you may only apply for £5,000 (ie remaining 5% equity) loan for renovation.
• All loans will be offered interest free, but will incur an administration fee of £500; this can be added to the loan or paid upfront.• All loan repayments will be administered by Lendology/Parity.

Eligibility

• This assistance is DISCRETIONARY and aimed primarily at vulnerable and low income clients.
• Home Improvement Loan assistance is available to Owner Occupiers (primary residence only); Landlords (individuals and companies); Developer (partnerships and companies); Charities/Third Sector Organisations.

Application

• Welsh Government's Home Improvement Loan Scheme Application Form
• Applications will have to supported by proof of Title and sometimes will have to supported by a RICS Valuation. The cost of obtaining these are not included in the £500 administration fee.
• If the loan does not cover the full cost of the works, evidence of adequate finance to ensure that the scheme is financially viable from the start is required.
• Two quotes for the work under consideration must be submitted at time of application.

Send the above application form:

• By e-mail: tai@gwynedd.llyw.cymru, or;
• In the post: Housing and Property Dept., Cyngor Gwynedd, Cae Penarlâg, Dolgellau Gwynedd, LL40 2YB

Conditions

• All loans must be repaid before the end of March, 2030.
• All loans will be secured as a first or second charge against the Land Registry Title and the property must be registered with the Land Registry prior to loan approval.
• The property must have valid insurance.

Who to contact?

• Online housing enquiry
• 01286 685100
• Private Sector Housing, Housing and Property Departmentm Cyngor Gwynedd, Cae Penarlag, Dolgellau, Gwynedd LL40 2YB

The Council can help to reduce or eliminate the VAT payable on all materials used to bring a vacant property back into use. Properties that have been empty between 2 and 10 years can have the VAT on materials used reduced to 5%. Those empty for 10 years or more can have the VAT reduced to nil.

Bringing empty properties back into use can be costly, particularly when extensive renovations are required. To help reduce these costs, the Government has introduced a number of changes to the amount of VAT payable on renovation costs to long-term empty buildings.

If you are intending to renovate an empty property it is important that you understand these changes, as it is quite common for builders not to know about different VAT rates. This could lead to you being charged the standard rate of 20%, even if you are eligible for a reduction. Once paid it can be difficult to reclaim overpaid VAT.

This guide provides an overview of circumstances in which you may be eligible for a VAT reduction when renovating empty properties. Please note, this guide is not comprehensive and should not be taken as a guarantee. Any claims to VAT reduction/exemption should be verified with HMRC, and/or confirmed through reference to HMRC Notice 708 and/or HMRC Notice 431C

VAT Reduction: renovating houses empty for a minimum of two years

• Costs of renovation and alteration work to residential premises that have been empty for at least two years can be eligible for a VAT rate reduced to 5%. This equates to a reduction of 15%, from the 20% standard rate normally applicable.
• Contractors should ensure they are fully aware of tax rules when they are purchasing goods/services. Only certain goods/services are considered eligible for this VAT reduction (HMRC Notice 708, Section 8.4).
• For further details refer to HMRC Notice 708

VAT Exemption: renovating houses empty for minimum of ten years

• Renovation and alteration work to residential properties that have been empty for at least ten years can be eligible for a VAT reduced rate of 0%.
• Your eligibility is partially conditional on using the renovated property for residential purposes for either yourself or your family. It is not possible to live in the property directly before beginning renovation work.
• Further information can be found through reference to HMRC Notice VAT431C and HMRC Notice 708.

VAT Exemption: conversion of properties to residential purposes

• When converting a non-residential property to residential purposes you may be eligible for a VAT rate of 0%.
• A conversion in this case is defined as converting a non-residential building that has never been used for residential purposes into a residential home.
• Your eligibility is partially conditional on using the converted property for residential purposes for either yourself or your family.
• Further information can be found through reference to HMRC Notice VAT431C and HMRC Notice 708

I think I may be eligible, what do I do now?

If you believe you may be eligible for a VAT reduction/exemption (on any works you will be undertaking to bring an empty property back to residential use) then contact HMRC:

• 0300 200 3700 (Monday-Friday, 08:00-18:00)
• https://www.gov.uk/topic/business-tax/vat(opens in new tab) (opens in new tab)

Once HMRC confirm your eligibility, contact Cyngor Gwynedd Empty Homes Team to request proof that the property has been empty for the required period:

• Online housing enquiry
• 01286 685100
• tai@gwynedd.llyw.cymru