WALES' 2ND HOME POLICIES 'HAVING IMPACT ON BUYERS'

NEW TRANSACTION TAX FIGURES SHOW SALES DOWN IN HOTSPOTS

- By OWEN HUGHES Chief Reporter [e-mail]

A holiday home crackdown in Wales is having an 'impact on purchasing behaviour' say tax chiefs. The growth in second homes and holiday lets in some rural and coastal communities triggered a backlash over fears about the impact on local people.

There were parts of Gwynedd where half of all homes were holiday properties with warnings about the negative consequences this was having on the Welsh language and culture. It has seen an effort to mitigate that trend in a bid to free up more homes for local people - although critics say the focus should be on building more properties.

Measures include significant council tax premiums on second homes as well as stricter criteria for a property to be classed as a holiday let, which are exempt from council tax. Cyngor Gwynedd has also introduced a new Article 4 rule that requires planning permission for a residential property to change its use. Other areas are looking to follow their lead.

While the measures have been welcomed by many, the tourism industry has warned of the impact on their sector and the Tories have said the focus should be on building new houses.