Anglesey considers tax hike on second homes
INCREASING the council tax premium on owners of second or holiday homes will be debated by Anglesey councillors.
In April 2017, the authority introduced a 25% premium on owners of long-term empty or second homes in an attempt to help locals get on the housing ladder.
But while many other authorities in West Wales have decided to follow suit, the majority already levy an extra 50% rather than 25% premium.
As a result, elected members on the island are set to consider a similar increase going forward.
Figures released by Her Majesty’s Revenue and Customs show 36% of all homes sold on Anglesey during 2017-18 were second homes or buy-to-lets, a jump from 29% a year earlier. As a result, 450 transactions took place worth a total of £92m over the past financial year, with 2,627 second or holiday homes registered.
Another 697 homes are registered as long-term empty, with decision makers set to consider implementing the same or different council tax rates for each designation.
This has raised concern from language group, Cymdeithas yr Iaith, that the influx is having an impact on locals’ ability to buy homes in their own community while also having a detrimental effect on the Welsh language.
The Trearddur and Llanfaelog wards, which includes the village of Rhosneigr, both have more than 300 second homes within their boundaries. Meanwhile there are another 225 based in the Benllech area and 151 within the boundaries of Holyhead.
Gwynedd, which already implements a 50% premium, experienced an even higher percentage of holiday home sales which made up 39% of all property sales during 2017-18.
The continuing rise comes despite the UK Government implementing an extra 3% stamp duty charge on additional properties, introduced in 2016 to try to deter buy-to-let landlords and second home owners.
Anglesey will now consider similar proposals which could bring extra revenue at a time when the authority is trying to plug a £7m gap in its budget.