Councils can cap second homes with new plans
COUNCILS will be able to cap the number of second homes in their areas under latest plans announced by the Welsh Government to crackdown on second homes in Wales.
From this summer, three new planning classes will also be introduced – main home, second home and shortterm holiday accommodation.
It came as full details of Welsh Government measures which aim to ease the second homes crisis in many parts of Wales were unveiled.
New planning laws, a statutory licensing scheme and proposals to change land transaction tax, are being included in the package of measures.
In a joint press conference, First Minister Mark Drakeford and Plaid Cymru leader Adam Price set out the next steps in a programme of actions, to help “create thriving communities and to support people to afford a home”.
They insisted it was aimed at balancing the needs of locals to be able to buy homes locally, against discouraging visitors from coming to Wales and would give local authorities more powers to intervene in their areas.
The Co-operation Agreement between the Welsh Government and Plaid Cymru includes a commitment to tackle the issue of second homes affecting many communities in Wales.
The package of measures announced yesterday includes:
■ by the end of the summer, three new planning use classes – primary home, a second home and short-term holiday accommodation. Councils will be able to make amendments to the planning system which will require planning permission for change of use from one class to another;
■ changes to national planning policy to give councils the ability to put a cap on the number of second homes and holiday lets in any community; ■ plans to introduce a statutory licensing scheme for all visitor accommodation, including shortterm holiday lets, making it a requirement to obtain a license; and
■ land transaction tax will be able to be varied locally.
The Welsh Government has already introduced a range of measures to address the issue of second homes, including giving councils the discretionary power to increase council tax premiums on second and empty homes and it has changed the rules on holiday lets so owners and operators make a fair contribution to their local communities.
But opposition is growing to new occupancy rules, with a fresh petition launched, amid concerns the policy could devastate a sector that underpins large parts of rural Wales.
First Minister Mark Drakeford said: “We are today setting out the next steps in a radical programme to ensure everyone has the opportunity to afford to live in their local community – whether that’s buying or renting a home.
“We have a shared ambition for Wales to be a nation of thriving communities – a country where people do not have to leave to find good and rewarding work and a country which people want to come to visit and to live.
“Tourism is vital to our economy but having too many holiday properties and second homes, which are empty for much of the year, does not make for healthy local communities and prices people out of the local housing market.
“There is no single, simple solution to these issues. Any action we take must be fair. We do not want to create any unintended consequences, which could destabilise the wider housing market or make it harder for people to rent or buy.”
The Wales Tourism Alliance (WTA) has previously said it will back a registration scheme as it is keen to weed out unregulated operators who typically spend less on regulatory compliance and contribute less to local economies.
As many legitimate operators rely on Airbnb for bookings, industry concern is focused on second home owners who “game the system” by offering occasional bookings to avoid tougher tax penalties.
But the WTA is reticent about licensing amid concerns it will be bureaucratic and expensive to run. The industry also believes it will preempt the introduction of a Tourism Tax.