Welsh Government plans to allow councils to cap the number of second homes or holiday lets in areas of Wales won't help local people get on the housing ladder, it has been warned. The latest swathe of plans to crackdown on holiday homes has been announced today by the Welsh Government.
With support from Plaid Cymru's Adam Price, with whom the Welsh Government has entered a co-operation agreement with to ensure the passage of legislation through this Senedd, Wales' First Minister Mark Drakeford announced the latest plans in a press conference.
He said:
- By the end of the summer, three new planning use classes – primary home, a second home and short-term holiday accommodation. Councils will be able to make amendments to the planning system which will require planning permission for change of use from one class to another
- Changes to national planning policy to give councils the ability to put a cap on the number of second homes and holiday lets in any community
- Plans to introduce a statutory licensing scheme for all visitor accommodation, including short-term holiday lets, making it a requirement to obtain a license
- Land transaction tax will be able to be varied locally
You can read our coverage of the press conference here.
The First Minister admitted the planning categorisation will only apply to new homes or those changing their designation. Sam Rees, Senior Public Affairs Officer at Royal Institution of Chartered Surveyors (RICS) said the approach of "greater regulation, licensing and taxation" towards second homeowners won't help those in a community who are trying to get on the housing ladder.
He said: "RICS welcomes measures designed to protect rural communities and expand access to affordable housing – while also appreciating parts of the market, especially holiday lets, do support local economies heavily reliant on tourism. The measures announced today go some way towards disincentivising parts of the second home market but could simply shift buyer interest to those with even higher levels of disposable incomes.
"The Welsh Government’s approach is centred around greater regulation, licensing and taxation toward second homeowners, rather than directly supporting those already in these communities looking to get on the housing ladder. It’s unclear how these proposals will help those already struggling to purchase a home. RICS have previously called for the Welsh Government to investigate a local support scheme for first-time buyers in such communities, similar to that of the ‘first dibs’ scheme in London. We would reiterate that call as we believe it could provide valuable support to first-time buyers and the market in Wales."
The Welsh Conservatives have also criticised it, with Janet Finch-Saunders, MS for Aberconwy, saying they were simply adding more bureaucracy.
"To put it short – this Welsh Labour and Plaid Cymru plan is not going to, as the First Minister claims, ensure everyone has the opportunity to afford to live in their local community.
"It’s not a cap on the number of second homes and holiday lets, new planning use classes, statutory licencing scheme, nor varying land transaction tax, that is going to address the housing crisis. They are simply more bureaucracy for the sake of providing a false façade that action is being taken to provide homes for locals."
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