Caernarfon Herald

NEW HOLIDAY HOME RULES HAVE STARTED IN WALES

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rules aimed at limiting the number of second homes in Welsh communitie­s are now in force - with big bills for holiday lets that don’t meet new criteria.

Wales has seen a rise in second homes and holiday lets in recent years - swamping some coastal and rural communitie­s and pricing local people out of the market.

There have been community protests and pressure on Welsh Government to act. This has seen new tougher criteria brought in for homes to qualify as holiday lets and the power for councils to put 300% council tax premiums on second homes.

Welsh Government said communitie­s in Wales will now be better supported to address high levels of second home ownership and empty properties.

But tourism bosses have called the new rules “draconian”. They say the criteria to be classed as a holiday let - and pay business rates rather than council tax - is too tough and that there are not enough exemptions to the new rules.

The current availabili­ty threshold to be a holiday let will rise from 140 to 252 and the current occupancy threshold go from 70 to 182 days. It will see some properties go from paying nothing in business rates - as they are often under the threshold to pay - to having to fork out potentiall­y thousands on council tax. How the Wales holiday let rules will be checked and enforced.

Five councils have increased the premium charged for second homes in 2023-24, with another seven set to introduce one from April 2024. Three have increased the long-term empty property premium in 2023-24, with another four introducin­g one for the first time, and another two planning to introduce one in April 2024.

Rebecca Evans, minister for Finance and Local Government, said: “The changes form one strand of a wider package of measures being introduced – encompassi­ng the planning, property and taxation systems – to address the impact of second homes and unaffordab­le housing affecting many communitie­s in Wales. Ultimately, these changes are about fairness. We want to ensure councils have the powers available to strike the right balance in local housing supply.”

But Wales Tourism Alliance chair Suzy Davies said genuine holiday businesses will be caught up in a policy designed to clamp down on second homes: “This may well stop second homeowners claiming they are businesses in order to game the local taxation system. We also want that stopped. But in setting these thresholds so high, the Welsh Government will be taking out local businesses too. These are the profession­al businesses who, however innovative they are, cannot create summer-style demand throughout the year.”

However designated member Siân Gwenllian, Arfon Plaid Cymru MS, said: “I am glad that so many local authoritie­s in every corner of our country are responding positively to the levers that have been introduced. I would like to thank all those across Wales who have worked hard to move quickly, given the housing and cost of living crises. Ultimately this is matter of fairness for local people and those on lower incomes. The extra finance generated by the new premiums will be put to good use - including improving the availabili­ty of affordable homes for those who are currently being priced out of their communitie­s.”

The commitment to enable increased land transactio­n tax to be raised on second homes and short term holiday let purchases is also being taken forward, as well as specific action to protect Welsh speaking communitie­s including a voluntary ‘fair chance scheme’ giving sellers the option to only market properties locally for a fixed period.

Julie James, minister for Climate Change, added: “The challenges that can be caused by high levels of second home and short-term let ownership are complex, and there is no quick fix solution.

“The wide range of measures we have introduced – across tax, planning, empty homes and our commitment to statutory licensing – are unequalled as a package in a UK context. It is a reflection of our commitment to help people live affordably in their local communitie­s.”

But FUW Farm Diversific­ation Committee Chair Dewi Owen said: “There is a strong feeling amongst the community of farmers who have diversifie­d into selfcateri­ng accommodat­ion that many Welsh Government policies designed with good intention to tackle the impacts of second homes and shortterm holiday lets will have a detrimenta­l impact on genuine providers.”

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