Local authorities in some of the most popular beauty spots in Wales are looking at the possibility of doubling council tax bills for holiday homeowners.
Under the Housing (Wales) Act 2014, which comes into force in April, councils will be able to charge up to 100% on top of existing council tax payments for second homes as part of an attempt to tackle housing shortages.
A second home is defined as one that is not a person’s sole or main residence and is substantially furnished. Where a council tax premium on second homes is charged, the Welsh government will encourage the local authority to invest the funds raised in the improvement and increased provision of local housing and local services in their local area.
The councils actively looking at the idea are: Pembrokeshire in south-west Wales; Ceredigion in west Wales and Gwynedd in the north-west. All are hugely popular with English visitors.
A public consultation by Pembrokeshire county council ended on Monday. It said an extra charge could help the supply of affordable housing, especially in rural areas, and could raise up to £2.5m a year.
There are about 3,000 holiday homes in Pembrokeshire and they make up nearly a third of the housing stock in spots like Tenby and Newport.
Ceredigion county council, which includes holiday destinations like Aberystwyth, is also holding a consultation on the issue, which runs until the start of next month. It has about 2,000 second homes.
Powys in mid Wales is further along in the process. At a meeting next month its councillors are due to vote on whether to bring in a 50% premium for long-term empty and “periodically occupied” properties. In a report its officers say this will increase the availability of housing stock and provide a “positive impact on the sustainability of local communities”.
With almost 5,000 holiday homes, Gwynedd council in north Wales might be thought as the main beneficiary. But its councillors are digesting a report suggesting home-owners may try to avoid the new premium by becoming commercially-let units and pay business rates rather than council tax.
The Welsh government believes there are aproximately 23,000 second homes, including self-catering holiday lets, in the country. Of the people with a second home used as a holiday home in Wales, almost 80% have that home in Gwynedd, the Isle of Anglesey; Conwy, Ceredigion; Pembrokeshire or Powys.
The government says it understands that second homes benefit the local economy and tourism. But the fact they are occupied for only part of the year has raised questions about the impact they can have on local services and on the availability of local, affordable housing.
There are also worries that they endanger the Welsh language because they push speakers out of communities where the language is traditionally strong, such as in Carmarthenshire.
Wales is not the only part of the UK that has looked at ways of tackling the problem of second homes. St Ives council explored the possibility of banning new developments aimed at second home owners in Cornwall.
