New rules on second homes on the horizon
WELSH Government is looking to introduce new rules to ensure second homeowners are making a fair contribution to Welsh communities.
Amid long-running claims that some holiday home owners are exploiting a “loophole” to avoid paying any tax on their properties, ministers have launched the exercise seeking the public’s views on the need for any extra measures.
In July the Welsh Government unveiled a “three pronged approach” as part of a “summer of action” to tackle long running concerns over the impact of second homes.
Among these mooted measures are a planned statutory registration scheme for all holiday accommodation, including shortterm lets, and potentially a separate planning classification for second homes.
The Welsh Government also promised a consultation on shutting what is often referred to as a “loophole,” which allows the owners of second properties to flip from domestic to non-domestic rates, but often making use of Small Businesses Rates Relief to avoid making any contribution at all into local authority coffers.
Housing minister Julie James, setting out the Government’s proposals, said that all second home owners should be making a “fair contribution to the communities in which they buy property” and suggested more stringent checks and potential changes to local taxes.
But others have criticised the Government for moving too slowly, having been described by Plaid Cymru politicians as “kicking the issue into the long grass” after pilot areas and consultations rather than immediate action were mooted.