Daily Mail labels second home restrictions 'anti-English attack'

The Daily Mail has claimed that second-home owners are slashing thousands from the asking price of their Welsh holiday cottages in an effort to escape ‘anti-English’ tax hikes.

Councils in Wales have been able to charge a second home premium of up to 300% since April 2023, but the article also claims that 'the Welsh government has given councils the right to impose council tax bills four times higher than normal on second homes in a bid to stop locals being priced out' referring to a UK-wide policy for homes that have been empty for over ten years.

This, they say, has left second-homers in 'the popular coastal county of Gwynedd' in a race to sell after prices plummeted 12 per cent in a year.

According to the article, Welsh tourist bosses have warned that the policy will decimate local jobs market but the local council has now introduced another deterrent, requiring owners to apply for planning permission if they want to use a house as a holiday let.

'Plight'

The article highlights the 'plight' of grandfather Tom Williams from Lancashire who has reduced his three bedroom property in Morfa Nefyn, Pwllheli by £40,000 "as he joins an exodus of English owners".

He told the BBC: "I put it down to all the other properties in the village that are up for sale at the moment.

"I've spoken to a lot of families who have had homes there for generations and they're saying the same thing - how can we carry on with this?

"I have four grandchildren who had a wonderful time there every summer and it's been great, we've loved it."

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"Policy is working"

Gwynedd currently has one of the highest rates of second home ownership in the UK

There has been an increase in the number of second homes turning back into main homes in Gwynedd – according to a new report.

Research presented in a Cyngor Gwyndd report on the impact of recent changes to council tax premiums – used as tool to help address housing issues in the county – found they were “working”.

Research detailed in the report stated: “In terms of properties moving between being a second home and being a primary residence, there has usually been a (net) flow of properties from main residences to second homes.

“But the net flow was the other way (i.e. from second homes to main residences) in the run-up to the premium increase to 100% in April 2021, and (more decisively and more long-lasting) before and after the premium increase to 150% in April 2023 that this flow has grown so that the number of second homes is now stable (i.e. this flow is around the same as the flow of second homes to main residences).”

Cllr Rowlinson said: “There are now more second homes turning back to main residences, so it appears the policy is working.”

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Affordable housing

During the meeting, Cllr Rowlinson had also quoted from Welsh Government guidelines, saying that the power to increase the premium had been “a resource to bring long term empty dwellings back into use and to help local authorities increase the supply of affordable housing and make local communities more sustainable”.

The measures were used as “a tool in our housing policy not a way to make revenue,” he said.

Also referring to Article 4 – introduced in September – he said it was an “important tool” that restricted the ability to change the use of a property from a main residence into a second home without planning permission.

“We can set a policy which refuses permission in areas where it is difficult for people to find homes, due to the pressure of the numbers of second homes.” he said.

But, he added: “Article 4 only came in three months ago. I think more time is needed to assess the impact yet, before we change anything else.

“It is worth remembering, if we do need to raise the council tax significantly this year, which is looking likely, the premiums would increase automatically.”

His report explained that for the financial years, 2023/24 and 2024/25, the council had already raised a council tax premium of 150% on second homes and 100% on long-term empty dwellings, but legislation allowed the Council to charge a premium of up to 300%.

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"Anti-English"

Ashford Price, chairman of the National Show Caves Centre for Wales previously warned of the 'serious economic damage' of the council tax charges and branded them an 'anti-English' move.

The Welsh Tourism Alliance has warned that the move would backfire, saying: "As a tool to bring properties back into a market which is affordable to local people, it will not work.

"Rather, it will reduce local owners' ability to earn an income and cause a decline in secondary jobs in hospitality, retail, house maintenance and cleaning.

"It will not safeguard the Welsh language as these businesses will be lost to wealthier outsiders prepared to meet the higher costs of having a second home or self-catering businesses in Wales."

Property Act

Cymdeithas yr Iaith has long campaigned for the right for Wales' young to live in their communities. They say: "The entire housing system must be transformed to put local needs before profit and to treat houses as social assets for the benefit of all.

"The campaign for a Property Act is nothing less than a campaign for the future of all the communities of Wales, be they Welsh-speaking, English-speaking or multicultural.

"We call on the Welsh Government to take urgent steps to deal with the housing crisis and safeguard the future of our local communities by passing a progressive Property Act during this government term."

Speaking at a Nid yw Cymru ar Werth Rally in May 2024, Beth Winter said: “The people who live and work in Wales are in the best position to know what is needed in our communities, and decide how wealth is created. That is why this Act is so important.

“Adequate housing should be a right for everyone, not a privilege for the wealthy. A Property Act would be another link in the chain towards creating a fairer, better Wales.”

Also at the rally, Mabon ap Gwynfor, the local Member of the Senedd and his party’s spokesperson on housing, said: “My inbox is full of teachers, teaching assistants, nurses who cannot afford houses to live in the communities where they work.

“That is the crisis we are living through, and why today and a Property Act are so important. Everyone should have the right to live in a house that meets their physical needs, that meets their economic needs, that meets their cultural needs.”