Environmental campaigner and writer George Monbiot said he sold his house in Machynlleth to a local family in the town rather than a potential second home owner.
Mr Monbiot, who has owned the house in the Powys market town since 2007, described the second homes crisis as "obscense and grotesque".
For the last nine years, the writer has rented out the house to a local housing co-operative. However, in January he decided to sell the house but not on the open market, which he says has meant that he has accepted an offer at a lower price.
The campaigner said that he is proud of his decision amid concerns over the increasing number of second homes in Wales.
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"I'm very strongly against the ownership of second homes and I think they are a major cause of homelessness in this country, especially in scenic and coastal areas," he explained to WalesOnline.
"Then of course, that has a knock-on effect right through the whole country because people who can’t find homes in those areas and have to go and look for homes elsewhere and adds to the housing pressure elsewhere.
"I think it’s just obscene that while we have so many people who are either homeless or underhoused at the same time we have the rich people owning more than one home, which they obviously don’t fully use. It’s grotesque that that is allowed to happen.
"If I had advertised this house in London - it’s exactly the sort of house which rich people would want as their second home. I think I would have had a lot more money from it. But it’s got to be more than just money - we are constantly told that our greatest aim is to make as much money as possible, and I think no - we should have enough but we should be able to recognise when we’ve got enough.
"The constant pursuit of more money than you need is what’s trashing the living world - economic growth is what’s basically driving environmental disasters but also destroying our social fabric life. We all owe an obligation of decency to other people. It’s what sits at the heart of this life. Unfortunately, we are brought up in a system that tells us that we don’t."
George decided to sell his house on a local bulletin board rather than on an open market. The activist has seen it first hand the effects of second homes in the area.
Ward-level taken from the Valuation Office Agency by Dafydd Elfryn shows there are six second homes in the ward of Machynlleth. But in nearby ward of Aberdyfi, there are 154. His map is available here.
Powys County Council recently announced that it would wait to see the outcome of a Welsh Government consultation before implementing a decision which previously agreed to increase council tax on holiday homes.
At present, holiday homes can be subject to the full council tax charge according to the council's website.
However, a second or holiday home premium could take it up to 75% above the normal Council Tax bill, meaning second homes would be charged 75% more than the full council tax rate was implemented. Figures from 2020 suggest it would gain the council an extra £350,000 in Council Tax.
"I’ve got a lot of friends in the area - people now are really struggling to find housing," George added.
"In fact, some people that I know have gone to the owners of second home houses and asked them to rent their house to them and they have said no - they are usually local people that own holiday lets in the area, which is another strongly connected issue.
"And so, while these purposefully habitable houses are just sitting there being reserved for tourists to stay in, there are people that don’t have the basic accommodation that they need. As a result, a lot of young fantastic people are being driven out of the area because they have nowhere to live, and that is how communities die.
" When I put the house on ‘Machynlleth Swap Shop’ - a local bulletin board, several people immediately showed interest - two that I knew, and the family that I’ve agreed the sale with are very strong members of the community that do a great deal to the town.
"I would have felt pretty bad if I would’ve found out that the house was being sold to someone other than someone who was actually going to live in that house. It makes me feel happy that it’s going to a family that has done such a strong contribution to the community."
George Monbiot's decision comes amid the Welsh Government's consultation on the second homes' situation across the country.
In December, the Welsh Government announced that they had launched a consultation on proposing local variation to land transaction tax (LTT) rates for second homes, short term holiday lets and potentially other additional residential properties across different parts of Wales.
Under current laws, those looking to buy such properties in Wales have to pay a minimum of 4% duty, which has increased from 3% since December 2020.
However under considered proposals, those planning to buy a holiday home in Wales could be paying a higher rate of Land Transaction Tax.
The consultation so far recognises that LTT is "an episodic tax" that only charges at the point of purchase. According to the Welsh Government, it is "likely to have a limited impact" in the short and medium term for the existing proportion of short-term holiday lets or second homes in Wales.
The consultation period, which asks the people of Wales their thought on the proposals, comes to an end in March.
According to Mr Monbiot, his decision was made in the "absence" of government action, but he believes that further action could be taken to tackle the crisis.
He said: "I want to see is effective government action to stop this. I’m very much aware of the Welsh Government’s consultation. But, in the absence of that I think that people selling homes should be careful not to sell them to second home owners.
"There are a couple of things we could do to tackle the crisis. First of all, I think we should define second homes as an extravagant that our nation cannot afford. While there are so many people homeless or underhoused, communities are falling apart because young people can’t afford to live in them, it is entirely ridiculous that people can own homes that are not permanently inhabited. And so, either we say there is going to be an outright ban on them or you raise taxes on them to such an extent that it becomes prohibited to own one.
"I know that local authorities in Wales, by contrast to England’s, have varying power on council taxes and can raise it by a maximum of 100%. But the majority of councils haven’t taken that up, only Gwynedd and Swansea have done so - which seems really negligent. Powys is currently having a consultation whether to raise it up to 75%. I’m very glad that the Welsh Government are having this consultation, I’d love to see that top rate reaching a thousand percent with council tax.
"And then there is sort of related questions about what you do with holiday lets? I think most people would agree there should be some as people want holidays and a lot of communities rely on there being holiday lets for local income, but I think that should be regulated.
"If you’re going to have a home to become a holiday let, then you should require planning permission to change of use. And so, the local council would say, right, the best balance is that X per cent of homes can be holiday lets can be in this town, because that will provide income without taking too much housing away from local people. Anyone who wants their house existing or otherwise as holiday lets must apply for planning permission to change of use. And then they could say that they will accept 30 applications, for example, for one particular town because that’s what they’ve decided is appropriate for that specific town. That would be an essential policy.
"We should be encouraging people to have homes to live in, and if there are homes that are not lived in then that should be a part of a policy where we make a political decision through our democratic bodies to say this is how it’s going to be rather than letting the rich people to fight for themselves."
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