Second homes in Wales could face 300% council tax hikes

General Chat In The News
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#1

Currently councils can charge a second home premium of up to 100% but that will increase to 300% from April 2023. The move, included in a Labour-Plaid Cymru cooperation agreement, is part of efforts to make it easier for people to afford homes where they grew up.

“It’s astounding and morally indefensible,” Jonathan Martin, a spokesman for the Home Owners of Wales Group, told BBC Radio Wales Breakfast. “Where do they think we’re going to get this 300% from? I can’t afford it, that’s for sure and I’m quite sure a lot of other people can’t afford it. It’s just astounding.”

Well, he would say that, wouldn’t he … :man_shrugging:

Having lived in Wales and seen villages blighted by English “second-homes”, I’m absolutely delighted by the news.

:+1:

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Over 50's Wales Club
#2

I thought discrimination in any form was illegal

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#3

That should be standard practice all over the UK. As for Wales, I bet the Welsh are fed up with the English and their 2nd homes. Rather than increase council tax, it would be better if a compulsory purchase order was issued and each property then rented out to Welsh nationals :+1:

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#4

It is, but it’s still alive and well today. I’ve run into enough in my time to know how it works🤬

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#5

Will this apply to all second homes no mater who owns them, including the Welsh ?

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#6

It’s the same up here, and out on the Isles as well. Locals can’t get a home as they are being snapped up by rich people wanting a getaway bolt hole. I think things are about to change though as there is a lot of anger over it all.

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#7

“2nd home-owners”, AFAIK, do not have ‘protected characteristics’.

#8

It’s the same down here Rox. 2nd homes are sought here as it’s an easy train ride out from London.

#9

https://www.thenational.scot/news/18709496.scotland-needs-hutting-revolution-protect-housing-young-locals/

#10

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Residents of a small village fear their community will be lost forever as most of the homes are being used for holiday lets.

Only two out of the 50 properties in Cwm-yr-Eglwys, Pembrokeshire, have permanent residents. A third is for sale for more than £1m and locals say they are being priced out of the market.

Cwm-yr-Eglwys is one of the most picturesque villages in Pembrokeshire - a sheltered cove with a ruined church on the foreshore, echoing a sea-faring past and a time when sea captains and their families, fishermen and farmers all lived in the village and surrounding area.

In recent times, it has become hugely popular as a holiday destination, with the Pembrokeshire coastal path running directly through the village.

Locals say the community has been lost as each house in turn has become a holiday home.

An extreme example, perhaps, but not an isolated one … :scream_cat:

#11

The housing situation is so bad in my area, static ‘park homes’ are now being sited at every opportunity.
Chichester Lakeside, Chichester 2 bed static caravan for sale - £75,000 (onthemarket.com)

#12

AFAIK, yes … and not just second-homes:

A Welsh government spokesman, said:

"Wales is the only UK nation to give local authorities powers to charge higher levels of council tax on both long-term empty properties and second homes. The decision to apply and increase council tax premiums rests with local authorities.

“We’ve also increased the higher rate of land transaction tax, which applies when people buy an additional property. We are looking at what further interventions are available and how our partners can use existing powers.”

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#13

We have the same issues here in Norfolk. Local people are often priced out of the housing market, especially in parts of the costal area, by second homeowners. One second home owner bought a house next to a pub & then complained the smells from the kitchen & the noise from the customers were ruining his holidays!

A few years ago, it was revealed the biggest selling item for supermarket home delivery was champaign. It was largely for weekend delivery & almost all delivered to holiday homes. So I would say if Wales is anything like Norfolk, they can afford it, but that it may reduce the bottles of champaign sold.

#14

Thanks for clarifying Omah :+1:

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#15

Out of curiosity though … in these lovely picturesque but somewhat isolated looking villages what is the local economy like?

Are there jobs for the local young people? If not, how are they supposed to afford mortgages anyway?
Did a lot of these villages population dwindle as young people moved out of the area to find work therefore allowing the second home owners in?
It could be a Catch 22 situation.

And holiday homes in resort type areas present their own problems.
They rely on tourism … and a great many cash in on tourists, except it’s seasonal.

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#16

You might be interested about what happens here.

The state government levies a Land Tax on properties over a certain value (currently about $900,000) however this tax doesn’t apply to your principle place of residence. This is tax separate to the council rates.

For example when I owned a number of investment properties I had to pay Land Tax on them as their total value was over the threshold.

It seems a fairer way than allowing councils to apply rates penalties.

BTW The way to overcome this is to buy properties in different states.

#17

That could be self defeating as it will deter landlords from buying neglected properties and after a full refurb letting out to local tenants. If that applied to my neck of the woods, I would cease scouring property for sale with an eye on possible future tenancies. Poor condition housing is not mortgageable, so this is where landlords slot in and return reconditioned properties to the rental scene.

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#18

Since Wales is NOT your “neck of the woods” different circumstances probably prevail.

#19

I wouldn’t know and don’t shout at me!

#20

@ Chillie6, if you are talking “second HOMES” ?
Then l hope so Chillie!!
Donkeyman! :+1::+1:

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