West Norfolk Council reduced the council tax discount for long-term empty homes to 10 per cent in April this year to encourage owners to sell empty properties or bring them back into use.

It is now considering reverting to a 50 per cent discount to help hard-pushed home owners hit by the credit crunch and threat of recession.

A report to the council's cabinet, which meets on Tuesday, says: "The overwhelming feedback is that owners are doing all they can to dispose of their property, but with the current state of the housing marker this is proving difficult or impossible."

There are 955 properties in West Norfolk currently classed as long-term empty, the report said.

The council could make a saving rather than loss by putting the level of discount back up to 50 per cent, it added. It has to pass on the extra revenue generated through charging extra up the Government chain and has had to fork out more than £2,000 to help those who have had a genuine case for not being able to meet the increased payments.

Second home owners will be unaffected by the proposed change and will continue to pay 90 per cent council tax rate on second homes.