‘CATASTROPHE LOOMING FOR OUR INDUSTRY’
Fears second homes clampdown will see self-catering accommodation businesses priced out with dire knock-on effects for communities dependent on tourism
WELSH tourism providers fear a government clampdown on second and holiday homes will decimate the country’s visitor economy. The sector predicts new tax arrangements in Wales, designed to tackle housing shortages for local people, could open the floodgates to unregulated accommodation providers.
One landowner in South Wales is reported to be considering a sale of his entire stock of 80 residential lets.
Another in Powys fears her 21-bed selfcatering let will no longer be viable under the new taxation regime, depriving the local economy of thousands of pounds each year.
As her property, Gaer Hall in Guilsfield, near Welshpool, lies in a rural area far removed from the tourism pinchpoints of the West Wales coast, Margaret Bardsley believes it will struggle to meet the Welsh Government’s new occupancy rules.
Cardiff wants to put a squeeze on second and holiday homes by raising occupancy thresholds to at least 182 days per year. Currently, the occupancy threshold is 70 days.
Properties not meeting the thresholds will have to pay council tax rather than business rates. In some areas a council tax premium could be levied as high as 300%.
Ms Bardsley said: “These changes could be catastrophic for the visitor market.
“My property is available for let year-round, but getting it filled for 182 days each year is just not going to work in this part of the world, especially for people like me who have larger properties.
“If properties like ours become liable for the 300% council tax premium, it will decimate the tourism sector in Wales.
“This is a sector worth £2.8billion to the economy; around 8% of the country’s GDP.”
Ms Bardsley argues the Welsh Government is using a sledgehammer to tackle the problem while failing to recognise the distinction between second homes and regulated self-catering accommodation.
Cardiff says it wants to provide a “clearer demonstration” that affected properties are “genuine holiday accommodation businesses” that are making substantial contributions to their local economies.
Ms Bardsley said that is exactly what her business does, yet she and many other providers are being singled out for what’s happening elsewhere in Wales.
She estimates she will be facing around £6,000-£8,000 in extra costs per year under the new regime, without additional revenue.
“If we get a party of 20 people in, and they decide to go out, that could bring £500 to the local pub in one night, or £25,000 over a year, which could be the difference between survival and going out of business,” she said.
“It’s all very well adding a 300% council tax premium to a millionaire’s place in Abersoch, which he visits at weekends to sail his yacht, but that will only be an annoyance; it won’t force him to sell up, nor will it provide affordable accommodation for young people in the area unless new housing is built.”
Among members of the Furnished Holiday Lets Group, set up in Wales during the pandemic, there has been consternation at the taxation changes.
The Welsh Government’s Welcome To Wales strategy, which set its priorities for the visitor economy from 2020 to 2025,
advocates a “spend and spread” approach in which investment and innovation leads to more year-round tourism.
Under the new taxation regime, however, the sector feels seasonal operators will no longer be viable.
CLA Cymru, which represents farmers and landowners across Wales, is alarmed at the new regime which, it said, “punishes” a sector that had been encouraged by Cardiff to diversify into holiday lets.
Its director, Nigel Hollett, said providers away from the West Wales coast may become the “unintended victims” of the Welsh Government’s efforts to stem the country’s housing crisis.
Nor is it likely to solve the problem, he said.
“No evidence has been presented that targeting the tourism sector will increase the affordable housing stock, or that funds raised by councils will be committed to residential building,” he said.
CLA Cymru believes a lack of new housing is the reason for the crisis.
It wants to see investment in the planning system to enable the building of more homes. Suitable land also needs to be released for “sustainable development” and suitable buildings must be identified for conversion, from large urban sites to rural barns and former business premises.
Given encouragement, landowners can be part of the solution, said Ms Bardsley.
She applied in December 2019 for planning consent for 28 affordable homes.
The idea, she said, was to cater for a need that has grown out of the lack of any local housebuilding in the past 15 years.
As the former chief executive of a housing association, Ms Bardsley was clear there was a real appetite for affordable lets in the area.
“I’ve arrived here 35 years ago,” she said.
“If you consider the average size of a primary school classroom, it suggests that, during this time, around 900 children have grown up in an area with little or no new builds. So, there’s obviously going to be a housing deficit.”
Despite this, her planning application has yet to appear before councillors. Ms Bardsley is unclear why.
Planning authorities “dragging their feet” over new housing and a general reluctance to countenance new builds are drivers of the accommodation crisis, she believes.
Another issue ruffling feathers in the self-catering accommodation sector is government policy that requires “everdemanding” Energy Performance Certificates (EPCS) for properties.
For traditional, stone cottages – typical of the tourism sector in Wales – upgrading to tough new insulation and heating requirements can be prohibitively expensive.
One provider in North Wales fears he may have to dispose of around 12 traditional stone cottages because of the rising costs.
Mr Hollett, of CLA Cymru, said the future of the tourism sector in parts of Wales is looking bleak.
He said: “The big picture is that the Welsh Government’s proposals will lead to a reduction in capacity for visitors to Wales, meaning reducing the tourist pound spent in attractions, pubs, restaurants and shops.
“The proposals are an open-goal for the unregulated, online sources of holiday accommodation, without any real evidence they will significantly improve the supply of affordable housing.”
No evidence has been presented that targeting the tourism sector will increase affordable housing stocks
NIGEL HOLLETT CLA CYMRU DIRECTOR
AMLWCH HEAR TO HELP:
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ANGLESEY CENTRAL LIONS CLUB: Since the formation of the Club in 1978, the Club has donated money, and assisted in many local events throughout its 43 years of its existence. Like many other service organisations, the Covid pandemic affected the Club’s functions during this period. However, even under these extreme circumstances the Club managed to donate nearly £3,000 towards local appeals. Now that the Covid pandemic is hopefully coming to its conclusion, the Club would like to hear from like minded community supporters to become prospective members of the Club, to assist in the support of the local community. For details please phone: Lion Secretary Neil Stewart on 07747 043846.
BANGOR
RED CROSS: is looking for volunteer drivers and helpers to assist at Ysbyty Gwynedd and in people’s homes – contact Corinna on 01248 351103
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ZUMBA DANCE-FITNESS FOR BEGINNERS:
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ANGLESEY & GWYNEDD WIDOWED SOCIAL GROUP:
This is a social group covering Anglesey, Bangor, Caernarfon and Llyn, set up for widowed people to enjoy life again in the company of other widowed people who understand. As a guide it is suggested that people aged 50-70 will get the most from membership, as we aim to be active, out and about. At the moment it meets regularly in Bangor, Menai Bridge and Caernarfon and also meets up weekly for walks, and to go to opera, ballet, gigs, cinema, meals, pub quiz and weekends away. If you are an internet user please go to www.meetup.com and enter “Anglesey&gwynedd Widowed” (without the quotes) then apply to join. Or Call Dilwyn on 01248 601599, email dilwyn198@ gmail.com, or Lyn on 01286 678252, email lyn2910@yahoo.co.uk Please note: this is not a dating group.
BENLLECH
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HOLYHEAD
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HOLYHEAD AND DISTRICT PARKINSON’S SUPPORT GROUP: always welcomes new members.the group meets on the third Thursday of each month at Boston Centre Stage, Boston Street, Holyhead from 2pm to 4pm. If you have Parkinson’s, are a carer, friend or family member, then you are invited to come along for a chat, interesting and informative talks on a wide range of subjects, tea and cakes, support and information about Parkinson’s. The next meeting is on Thursday. March 17, starting at 2pm at Boston Centre Stage. Tony Price will be giving a talk about the RNLI. Tony is the Coxwain at RNLI Holyhead. For more information about the group, or if you could volunteer 30 minutes of your time to present a talk to the group, then please contact Beverley on 01407 740533.
LLANBEDRGOCH
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LLANFAELOG
DOG TRAINING: Garregddu Academy dog training classes, held in Llanfaelog Village Hall have resumed. Its instructors are qualified & regularly attend training courses (virtual at present) to keep abreast of training methods. If you are one of the many who have taken in a new puppy or a rescue dog during the pandemic & are experiencing any problems, do not hesitate to join a group of like minded people in similar circumstances. Dog training is fun & extremely rewarding. The sooner you start, the better. At Garregddu, we concentrate mainly on the needs of pet dog owners. We offer the Kennel Club Good Citizen’s Award scheme for those who wish to take it, with certificates at the end of each level. Good fun but not compulsory. Training day is Tuesday. All government rules will apply. A warm welcome awaits both past & new students. Further information email: garregddudt@btinternet.com Tel: 07734 097201. Telephone or email for details.
LLANFAIR MATHAFARN EITHAF
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LLANGEFNI
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ROYAL VOLUNTARY SERVICE: is looking for new volunteers to join the team and help with its Community Transport, Good Neighbours and Positive Steps services in Gwynedd and Ynys Mon. If you would like to make a difference in someone’s life, the RVS would like to hear from you. Contact Gwenda Hughes on 01248 661915 or Gwenda.hughes@royalvoluntaryservice. org.uk.
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PENTRAETH
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RHOSYBOL
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VALLEY
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ROSA ‘ELIZABETH’
This is a brand new rose introduction from David Austin, named in honour of Queen Elizabeth II, Britain’s longest-serving monarch, and to mark 70 years since her accession to the throne.
This repeat-flowering shrub rose bears clusters of large, apple blossom pink rosettes with a tint of golden apricot found at their centre. The flowers will pale to a gentle blush white and are sweetly fragrant with a hint of lemon sherbet.
Bred for health and vigour, it will do well in a container or as part of a hedge, mixed border or rose garden. Usefully, it will tolerate some partial shade.