Financial support is available to help bring back empty homes into use.
Houses into Homes Loan scheme
The Houses into Homes Loan scheme (funded by Welsh Government) provides interest free loans to enable the renovation or improvement of empty homes, or the conversion of empty non-residential property into residential accommodation.
Empty Spaces into Living Places
Grant Scheme Grants of up £25,000 (per unit) are available to empty properties in the Town Centres of Colwyn Bay, Llandudno or Abergele/Pensarn. The Grant can be used for the renovation of existing residential properties, or for commercial properties/empty spaces which can be converted into residential accommodation (subject to necessary planning consents).
Properties must have been vacant for 6 months or more and the owner must contribute to at least 30% of the cost of the works themselves. On completion, the accommodation must be leased to the Local Authority for a minimum 5 year period, during which time it will be used to accommodate homeless households. Rent will be guaranteed during this period and paid at the Local Housing Allowance rate for the property size – See Conwy Private Sector Leasing Scheme.
The Grant will be secured by a first or second Charge with Land Registry (subject to a maximum ‘loan to value’ ratio of 80%) and removed after the 5 year conditions have been met. Any Lender will need to consent to the Charge and the proposed Lease Agreement. There is nothing to repay if the terms and conditions are complied with for the period but the Grant is repayable in full if conditions are not met. Once the 5 years has ended, there are no restrictions on the tenant type/rent level, although management services can continue if requested.
Reduced rate VAT on renovation costs
If you are renovating an empty property, you could be eligible for reduced rate VAT on renovation costs.
To be eligible your property has to have been empty for at least two years before the renovation work starts.
HMRC guidance indicates that they would accept a letter from the Local Authority confirming that your property has been empty for at least two years before the renovation work starts. If you would like to discuss the length of time your property has been empty, please get in touch.
For information on the schemes, contact us by email to emptyhomes@conwy.gov.uk, telephone 01492 574235 or fill in our online enquiry form.
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