No backing down in 2nd homes row
A CARMARTHENSHIRE councillor is standing by comments he made in support of second home ownership in the county during a meeting discussing the need to clampdown on them.
Labour councillor Kevin Madge has come under fire from opposition members in Plaid for his views on second homes in which he argued they brought income and investment to Carmarthenshire.
His remarks were made during a full meeting of Carmarthenshire Council that was held online via webcam earlier this month.
However, Cllr Madge’s comments were branded naive, irrelevant and confused, sparking criticism from Plaid that Labour in Carmarthenshire has “abandoned its support for our rural communities” and lost its “moral compass”.
Market forces have left communities in Carmarthenshire “defenceless” against the rise of second homes, the council’s Plaid administration said at the meeting.
Plaid’s Cllr Cefin Campbell’s motion calling for a clampdown on second homes and holiday homes was passed at a meeting of the full council.
Around a quarter of the county’s 74 councillors did not vote after declaring an interest in the subject and left the meeting.
The 19 or so councillors who declared an interest did so because they either owned a holiday home themselves, including council leader Plaid’s Emlyn Dole, had relatives who were landlords, like
Carmarthenshire Labour leader Cllr Rob James, knew someone who owned a holiday home, or, in Independent councillor Sue Allen’s case, was an Airbnb “superhost”.
It meant Cllr Madge was the lone voice for Labour during the discussion, which has since prompted criticism from Plaid.
Cllr Campbell’s motion said 1,118 homes in Carmarthenshire were not the sole or main dwelling of the owner – up to 40% in some areas – which was pricing out local people.
At the meeting Cllr Campbell said younger families “forced to leave” their communities would help bolster pupil numbers, the local economy and the Welsh language if they stayed.
“It’s not really about inadequate planning policies, more about the unequal distribution of wealth, the haves, the have nots,” said Cllr Campbell.
“It’s when market forces leave your communities defenceless.”
At the meeting Plaid welcomed a Welsh Government intention to add a 1% increase in land transaction tax on the purchase of a second home, but said more measures were needed.
The second homes motion passed by Carmarthenshire councillors called on the Welsh Government to:
Change planning laws to ensure that planning permission must be sought for the change of use of a primary dwelling into a second home/holiday accommodation
Allow local authorities, in consultation with the local community, to set a cap on the number of second homes in each ward, and allow the use of Section
106 (planning) agreements to prevent new properties from being used as second homes in wards with an unacceptable proportion of second homes.
Introduce a licensing system for managing the conversion of a residential property into a commercial unit such as a holiday unit/house or Airbnb.
Close the loophole that allows second homes to register as businesses in order to opt out of paying domestic rates and council tax premiums, and take advantage of business rate relief.
Cllr Madge did not support the motion and argued when people came to live in Carmarthenshire they brought investment, including those who start their own businesses.
He also cited Welsh Government support for first-time buyers, but he
was accused of being confused about what second homes really were.
At the meeting Cllr Madge said: “I welcome the Welsh Government land transaction tax of 1%, there is need to put some tax on holiday homes no doubt.”
He said councillors only
had to see how many fellow members had declared an interest in the issue of second home ownership and abstained from discussing it to see how prolific second homes were in Carmarthenshire.
He then argued what he saw as the financial bene
fits of second homes to the county.
“You look at all the people who come into Carmarthenshire, tourism funding has gone up by £300m,” he said.
He added: “Now when people come to live in Carmarthenshire, (to) their second homes, they do bring in investment.
“They create jobs, and they start their own businesses and I’ve had experience, when I was leader of council, where people have come into Carmarthenshire and then they do create jobs and put investment into Carmarthenshire, so that’s important.
“I can see some properties, yes the cost of some properties go up because of it (second home ownership), but it is outweighed by the money that does come in (to Carmarthenshire).
“I understand where they (Plaid councillors) are coming from but the Welsh Government has put on 1% (tax).
“There is a lot going on with the Welsh Government to do this. I’m sorry, I cannot support this motion and I will be voting against it.”
Cllr Madge was defending Labour’s actions nationally over second home ownership and this related to the announcement at the end of last year that there will be a tax hike on second homes in Wales to help raise £13m for social housing.
The move is part of the Welsh Government’s budget for 2021-22.
The changes to land transaction tax – the Welsh version of stamp duty – came into force last month.
It will see second homeowners paying a 4% levy when they buy properties
up to £180,000, rising to 16% for homes worth at least £1.6m.
Cllr Campbell suggested Cllr Madge would rather see the benefit of people moving in than local people staying in the area. “He has raised irrelevant points,” said Cllr Campbell.
In the days following the meeting, which was held on January 13, several councillors voiced their opinion on Cllr Madge’s comments.
Plaid Cllr Alun Lenny, who seconded the motion, said following the meeting: “I was astonished to hear Labour’s sole speaker on the issue, Cllr Kevin Madge, defending the trend which has had a devastating effect on village life in North Wales and is now starting to have a detrimental impact on our communities in Carmarthenshire.
“The demand for second homes has increased due to the pandemic as rich urban dwellers seek a rural bolthole, and because of Brexit, as more people turn to Wales instead of France or Spain to look for a holiday home.
“As a result, we’ve seen a rapid rise in house prices in certain parts of the county. It’s disturbing and deeply frustrating to watch wealthy people snapping up properties at inflated prices as holiday homes in our villages, making it even more difficult, if not impossible, for young local people to get on the housing ladder.”
Fellow Plaid councillor Dorian Williams said Cllr Madge’s attitude at the meeting was “nothing short of shocking.”
He added: “He was heard and seen in a recorded meeting speaking, not on behalf of local people, but on behalf of wealthy absentee urbanites who have their own perception of the rural and coastal idyll of our county.
“Doesn’t he realise that the financial muscle of second home owners, in buying up houses which subsequently lie empty for months on end, severely impacts on local residents’ ability to get on to the housing ladder in their communities?
“As the sole Labour speaker on this key issue at the meeting, he should be ashamed of himself for taking such a stance.”
Plaid’s Cllr Peter Hughes Griffiths reacted after the meeting by claiming: “I can only come to the stark conclusion that the Labour Party has abandoned its support for our rural communities.”
Cllr Griffiths added: “Sadly, on this occasion not one Labour Party member voted for the recommendations.
“Unfortunately, a floundering attempt by Cllr Kevin Madge to justify his decision to vote against the motion made clear to me how little we can depend on Labour to fight for the interests of our communities and young people.”
In a statement Cllr Madge said: “The Welsh Government budget has included changes to the land transaction tax which will see second homeowners paying 4% levy when they buy properties up to £180,000, rising to 16% for homes worth at least £1.6m.
“It is important that we do not adversely affect our hospitality sector which has been hard hit by the pandemic and is a key sector in Carmarthenshire.
“Carmarthenshire deserves better, it’s time for change.”