Tackling second homes and holiday lets is an issue that has divided opinions in Wales in recent years. Over the past few months, the Welsh Government has announced its plans to crackdown on second homes, which will come into force next year.
Their plans include an increase to the maximum level of council tax premiums for second homes as well as new local tax rules for holiday lets. The maximum level at which local authorities can set council tax premiums on second homes and long-term empty properties will be increased to 300%, which will be effective from April 2023. You can read more about this plan here.
On top of this, change will bring in stricter rules for holiday homes that are exempt from council tax. Currently any holiday house that is let out for more than 70 days a year – and is available to be let out for more than 140 days a year – can pay business rates instead of council tax. Under the new rules holiday homes will have to be let out for more than 182 days a year and be available for let for upwards of 252 days a year to qualify for the exemption. You can read more about this plan here.
Read more: Wales needs to be more than ‘sheep, rugby and rain’, Zip World boss says
But it seems that an increase in second homes is having a devastating impact on some communities in England, leaving some areas sparsely populated for much of the year and inflating house prices so people often have to move away to have a chance of getting on the property ladder.
Recently, councils in areas such as Whitby in Yorkshire and Brighton in East Sussex have announced their proposed plans on tackling the issue. The UK Government has also announced its launching a review into short-term accommodation in England. Here, we take a look at their plans and how they compare to the Welsh Government's plan for Wales.
England
On Wednesday, the UK Government announced its plans to launch a review into short-term tourist accommodation in England. The review is set to look at the effect of short-term holiday lets and will seek to improve the holiday letting market for those living in popular tourism destinations.
The review will look at the market, as well as the opportunities and challenges presented for consumers and tourism communities, according to the government. The statement announcing the launch of the review also acknowledged that steps in regards to the issue had already been taken by "devolved administrations" of Scotland, Northern Ireland and Wales.
According to the government, Airbnb listing data showed a 33 per cent increase in UK listings between 2017 and 2018. Although an Airbnb report in 2018 revealed that a typical UK host on their platform earns an average of £3,100 a year, the government said that it understood "there can be an impact on housing supply and price in these areas" as well as fears of rising anti-social behaviour.
The UK Tourism Minister Nigel Huddleston said: "We've seen huge growth in the range of holiday accommodation available over the last few years.
"We want to reap the benefits of the boom in short-term holiday lets while protecting community interests and making sure England has high-quality tourist accommodation.
"While no decisions have been taken, this review will help us work out the options to look at so we can protect our much-loved communities and thriving holiday industry."
Whitby, Yorkshire
In mid-June, the people of Whitby in Yorkshire voted to ban new houses being used as holiday lets and second homes. The seaside town is one of the most popular tourists towns in northern England - over 500,000 people were said to have visited the area in the summer of last year.
But according to local councillors of the town, people were concerned about being priced out of the area as the cost of homes were increasing. In a parish vote, 2,111 people voters wanted all new-build and additional housing to be restricted to "full-time local occupation" as a primary residence, while 157 people voted against it. This mean that 93% of those that took part in the vote agreed with the plan.
Speaking to PA following the vote, borough councillor Phil Trumper said a three-bedroom house in Church Street - located right in the heart of the tourist area, would have been £25,000 to £30,000 in the early 90s but will now sell for in excess of £500,000.
"He added: "I think we're at a tipping point. We're losing a lot of the housing stock to holiday lets, which is driving up the prices of the properties, so its becoming unaffordable for young people who were born here and live here and want to work here."
The ballot could not force through policy. Scarborough Council explained that it was "no more and no less than an expression of the views of the electorate of the parish who have voted in the poll, and is not binding on any organisation".
Brighton, East Sussex
Last week, it was announced that Brighton, on the south coast of England, would become the first UK city to take action against second homeowners and holiday lets. It comes after a wave of buyers during the coronavirus pandemic pushed house prices to over £500,000.
Councillors have voted to ask officials to draw up proposals which will ban new-build second homes and holiday lets in some areas of East Sussex. A report carried out by Brighton and Hove City Council found that more than 3,000 properties in the city could be being used as short-term holiday lets.
According to real estate website Rightmove, the average property in Brighton and Hove is around £473,000, with terraced houses costing around £531,000 and a semi-detached property around £544,000. The website also added that property prices had risen by up to 14% since their pre-pandemic level of £414,000.
Similar plans to ban second homes have also been launched in other parts of England. The people of St Ives in Cornwall voted for a second home ban six years ago, which would see new housing projects needing a planning permission only if the property is reserved for full-time residents.
Meanwhile in Salcombe, Devon, South Hams District Council recently agreed an amendment to the neighbourhood plan for the town. This would ensure that all newly built homes could only be used as a primary residence.
READ NEXT:
Welsh council asks owners of more than 1,000 empty homes to sell them
Parents' despair over expensive school trips that divide children and leave too many missing out
Inside the empty Cardiff Bay building left disused for more than 25 years
Housing developer under fire as it changes holiday cottage name from Gwel-yr-Wyddfa to Sandy Retreat
'The UK needs to rejoin the Single Market — Brexit is failing Wales'
