New planning restrictions on second homes will be introduced by the end of the summer under proposals laid out by the Welsh Government and Plaid Cymru.
First minister Mark Drakeford and Plaid Cymru leader Adam Price held a joint press conference to lay out a package of measures that also includes a statutory licensing scheme for visitor accommodation and proposals to charge higher land transation tax on second homes and holiday lets.
The package follows the commitment in the Co-operation Agreement to tackle the issue of second homes affecting communities across Wales and builds on measures already introduced to give councils discretionary power to charge higher council tax rates on second and empty homes.
Measures include:
- Changes to planning regulations by the end of the summer. These will introduce three new planning use classes – a primary home, a second home and short-term holiday accommodation. Local planning authorities, where they have evidence, will be able to make amendments to the planning system to require planning permission for change of use from one class to another. We will also introduce changes to national planning policy to give local authorities the ability to control the number of second homes and holiday lets in any community.
- Plans to introduce a statutory licensing scheme for all visitor accommodation, including short-term holiday lets, making it a requirement to obtain a license. This will help raise standards across the tourism industry.
- Following a consultation about varying land transaction tax locally in areas with large numbers of second homes, work will start today (Monday 4 July) with local authorities to develop a national framework so they can request increased land transaction tax rates for second homes and holiday lets to be applied in their local area.
Mark Drakeford said: ‘Tourism is vital to our economy but having too many holiday properties and second homes, which are empty for much of the year, does not make for healthy local communities and prices people out of the local housing market.
‘There is no single, simple solution to these issues. Any action we take must be fair. We do not want to create any unintended consequences, which could destabilise the wider housing market or make it harder for people to rent or buy.’
Adam Price said: ‘The package of purposeful measures that have been developed as a result of the constructive cooperation between Plaid Cymru and the Government in this area will, together, begin to address the injustices in our housing system and make a real difference to people and communities right across our nation.
‘The aim is to give everyone “yr hawl i fyw adra”– the ability to live and work in the communities in which they grew up.’