Pembrokeshire County Council votes to cut tax premium for second homes
It comes after figures for July showed 135 second homes were listed for sale in the county, a rise of 255% from the 38 on the market in the same period last year.
Friday 18 October 2024 12:10, UK
A tourism hotspot in Wales has reduced the amount of tax second home owners have to pay.
Pembrokeshire County Council has voted to cut the premium from 200% to 150%.
The Welsh government had given councils the ability to increase the premium on second homes up to 300%, with it hoping the premiums will be used by local authorities to help develop affordable housing solutions.
In Pembrokeshire, the premium for second homes had been at 200% since 1 April this year.
But the reduction from 1 April next year comes after concerns were raised about the policy's impact on the tourism industry.
Figures for July showed 135 second homes were listed for sale in the county, a rise of 255% from the 38 on the market in the same period last year.
Under Welsh government policy, holiday lets must be commercially occupied for a minimum of 182 days per year to qualify for business rates.
"I was always told the 182-day policy and the 100, 200, 300 council tax premium was to tackle homelessness," Conservative Cllr Rhys Jordan said at a full council meeting on Wednesday.
"It hasn't done that, all it's done is hit our tourist economy. And this is why I said I would have much preferred to have seen the 182-day come in, see its impact after 12 months and then assess the council tax premium.
"But of course, last year, it was sold as our saving grace to plug the gap in the budget."
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Labour's Cllr Marc Tierney said: "We should be building more homes, but cutting the second homes premium today is not going to improve that situation at all.
"We will have to increase council tax when the time comes."
Thirty-three members voted in favour of the motion to reduce the council tax premium to 150%, with 22 against and one abstention.
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In a separate bid to help young people trying to get on the housing ladder, a new scheme has recently been introduced, offering grants of up to £5,000 for families who want to return home to western parts of Wales.
The scheme applies to young people originally from Anglesey, Carmarthenshire, Ceredigion or Gwynedd and who either speak Welsh fluently or are committed to learning the language.