The owners of long-empty homes could be hit by a tax hike under Government plans to bring them back into use and revitalise ghost estates.

In Shropshire more than 2,000 homes are empty but local authorities could soon be allowed to increase council tax on such properties in an attempt to stop them ‘blighting’ the area and to provide much-needed housing under plans which are being looked at.

At present, empty properties are exempt from council tax for the first six months, after which it is levied at the standard rate.

Under the Empty Homes Premium proposal, those still empty after two years could be liable to an increased charge.

The extra cash could be used by councils to improve their own housing stock.

Communities minister Andrew Stunell announced a consultation into the proposals at the Liberal Democrat conference in Birmingham.

Mr Stunell said the premium would act as a ‘nudge’ to owners to bring abandoned homes back into use and an ‘extra weapon in a council’s armoury’.

He said it was a ‘crime’ that at a time of a chronic shortage in housing some 300,000 properties had been vacant for more than six months.

This includes 30,395 in the West Midlands, of which more than 2,000 are in Shropshire. There are 507 empty homes in the Telford & Wrekin area, plus another 1,651 across the rest of the county.

“Discretionary, naturally. Localist, certainly. With essential safeguards and exemptions, of course. But a nudge to owners to bring abandoned homes back into use, an extra weapon in a council’s armoury in the battle to make better use of our housing stock,”

Mr Stunell said. “The premium will act as a spur for landlords to bring their properties back into use.”