FMB Cymru will oppose the Welsh Government's plans to reform council tax as we believe it will discourage homeowners from carrying out building projects on their homes, out of fear that it could lead to being placed in a higher council tax band.
Currently, homes that have undergone improvements and therefore have a higher market value only move council tax bands once they've been sold. However, under the new plans, revaluation could occur much more frequently, and homes that have recently been improved could be placed in a higher band at any point. If these plans go ahead, it’s likely to lead to fewer home improvement projects. Not enough new homes are built to meet the country's needs, so home extensions are often the only affordable option for homeowners who require additional space. It feels unfair to punish them for it.
Fewer building projects will inevitably have a negative impact on the economy as the construction sector is one of the largest industries that we have both in terms of output and employment. It will also harm our ability to achieve net zero – as we know that energy efficiency upgrades are more likely to take place alongside additional home improvement works. The BBC reported our opposition to the proposals, and we will respond to the public consultation on the plans over the next few months. If you have views on the matter, feel free to drop me a line for a chat.