Second home owners in Wales are reporting feeling unwelcome due to rising council tax premiums, with some now considering selling their properties. This comes as local residents continue to face difficulties in affording housing in their communities.
According to 2023-24 government data, more than 24,000 dwellings in Wales were liable for second home council tax. Gwynedd recorded the highest proportion of second homes in Wales during this period, at 8.3%.
Since 2023, second homes in Gwynedd have been subject to a 150% council tax premium. One owner, Bev Hooper, 67, from Yorkshire, stated that she and her sister face an estimated £7,000 yearly council tax bill on their Gwynedd property, leading them to consider selling.
The Welsh government has stated its ambition is for everyone in Wales to have access to affordable, good quality housing in their preferred area. Cyngor Gwynedd has previously indicated it is taking action to increase affordable homes and mitigate the impact of numerous second homes and short-term holiday lets.
Rhodri Lewis, 23, from Pembrokeshire, where 6.5% of properties were estimated to be second homes in 2023-24, said he could not afford a house in his home county and had to move back with his parents. He expressed concern that a lack of affordable housing could affect the Welsh language and community life outside of the summer tourist season.
Councils across Wales can apply a premium of up to 300% on council tax for extra homes not used as holiday lets for at least 182 days a year. The premium is currently 150% in Gwynedd and Ceredigion, and 125% in Pembrokeshire.
The Welsh government has said it is determined to refocus on the second home issue and will work with local authorities to review existing measures. A pilot scheme in Dwyfor, Gwynedd, is intended to inform this review.