Welsh Government announces ‘second homes crisis’ approach

The Welsh Government has set out a three-pronged approach to address the impact of second home ownership on Wales’ communities.

They said the new plan has fairness at its heart, ensuring that everyone in Wales can have access to good quality, affordable housing.

The three-pronged approach will focus on:

  • Support - addressing affordability and availability of housing.
  • Regulatory framework and system - covering planning law and the introduction of a statutory registration scheme for holiday accommodation.
  • A fairer contribution - using national and local taxation systems to ensure second homeowners make a fair and effective contribution to the communities in which they buy.

There will also be a pilot area in Wales, to be decided over the summer, where these new measures will be trialled and evaluated before being considered for wider rollout.

Other supporting actions, including the work on a registration scheme for all holiday accommodation and a consultation on changes to local taxes to manage the impact of second homes and self-catered accommodation, will also begin over the summer.

A Welsh Language Community Housing Plan, to protect the particular interests of Welsh language communities, will be published for consultation in the autumn.

Last year, Wales became the only country in the UK to give local authorities the power to charge a 100% council tax increase on second homes.

Visiting a housing development in St Davids, the Welsh Government’s Minister for Climate Change, Julie James, met with members of the local community, Pembrokeshire County Council and the Solva Community Land Trust.

She heard how they have been working together to use money raised from the Council Tax levy to build 18 new affordable homes for local people. 

Commenting, Ms James, who is responsible for housing in the Welsh Government, said the approach “has demonstrated how community action and good government policy can work together to bring fairness back into our housing market”.

She added: “The continuing rise of house prices mean people, especially younger generations, can no longer afford to live in the communities they have grown up in.

“A high concentration of second homes or holiday lets can have a very detrimental impact on small communities and in some areas could compromise the Welsh language being spoken at a community level.

“We have already taken strides on some of these issues, last year we became the only nation in the UK to give local authorities the power to introduce a 100% Council Tax levy on second homes.

“But the urgency and gravity of this situation calls for further intervention, which means real and ambitious actions are delivered at pace, to inject fairness back into the housing system.

“Taking recommendations from Dr Brooks’ report [Second homes – Developing new policies in Wales], our new three-pronged approach will kick-start a summer of action which will determine how we tackle this issue now and into the future.

“I am calling on all political parties across the Senedd to get involved in this, as we look to empower our communities to exercise their right to live in good quality homes, wherever they are in Wales.”

Over the summer, the Welsh Government will:

  • Work with stakeholders to agree the basis and location or locations for an evaluated pilot.
  • Develop a coherent and effective support package to trial within the pilot.
  • Frame a statutory registration scheme for all tourist accommodation and continue to engage with stakeholders on the shape of the model they will implement, including both the registration and inspection arrangements.
  • Consult on possible changes to local taxes to support local authorities manage the impact of second homes and self-catered accommodation.
  • Establish a draft Welsh Language Communities Housing Plan for consultation in the autumn.
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