Llangollen's second home issue raised in Senedd

The issue of second homes and self-catering accommodation in Llangollen has been raised in the Senedd by local Member Ken Skates. 

Responding to concerns raised by his constituents in the town, Mr Skates tabled a question to Minister for Finance and Local Government, Rebecca Evans, on Wednesday (July 29). 

On May 24, the Minister confirmed that the Welsh Government has legislated to increase the number of days within any 12-month period that a self-catering property is required to be made available to let from 140 to 252 days, and actually let from 70 to 182 days. 

Councils will also be given powers to charge a second home premium of up to 300% from April 2023. 

In the Senedd, Mr Skates asked: “What impact will changing the classification of self-catering properties for tax purposes have on residents in communities with increasing amounts of self-catering accommodation?” 

The Minister responded: “Our changes, which form part of our three-pronged approach, will help strike the right balance between capacity within the self-catering tourism sector, and the economic benefits that brings, and supporting viable communities of local residents.” 

Referencing Llangollen, Clwyd South MS Mr Skates went on to say: “This is really good to hear, because I’m sure you would agree that tourism is vitally important to the Welsh economy. But, of course, with the rapid rise in self-catering units, there is a risk that some towns and villages will cater more to visitors than to residents. 

“This is something that’s been raised with me by concerned residents in Llangollen on numerous occasions, when parts of the town – as many as one in five properties – are now advertised as Airbnb self-catering units. 

"Would you agree that we have to ensure that towns and villages across Wales are alive and active 12 months of the year, and can you guarantee that the measures that you have outlined will lead to a careful balance between our interest in driving the visitor economy and the need to ensure that towns and villages are living towns and villages?”

The Minister told the Senedd: “Absolutely. This strand of our policy, in terms of addressing the impact that large numbers of second homes and holiday lets can have on some communities in Wales, is about doing exactly that which Ken Skates has described. That’s creating sustainable communities where people can live year-round and where, in winter, you don’t go into those villages and find that the lights are off in the majority of those properties. 

“We know that in Newport, Pembrokeshire, for example, or in Abersoch, 40% of properties there are second homes and holiday lets, and that’s just not a balanced community. We absolutely recognise the importance of tourism, but I think that we also need to recognise that sustainable communities are important, and giving those opportunities to people to live in the communities within which they grew up and where they want to work and make a life for themselves.” 

Backgound

·     * On March 2, the Minister for Finance and Local Government announced the next steps being taken following the Welsh Government’s consultation on local taxes for second homes and self-catering accommodation. The steps form part of the Welsh Government’s plans to ensure property owners make a fair contribution to the communities where they have homes or run businesses. This work, in turn, is part of the Welsh Government’s three-pronged approach to addressing the impact that large numbers of second homes and holiday lets can have on communities and the Welsh language.

* The Welsh Government said views conveyed in the consultation, including those from the wider tourism industry, clearly supported a change to the criteria for self-catering accommodation to be classified as non-domestic. Respondents were of the view that the majority of genuine holiday accommodation businesses would be able to satisfy increased letting thresholds, and a wide range of possible alternatives were suggested. 

·     *  Following the consultation, the Welsh Government is of the view that properties let out as self-catering accommodation should be classed as non-domestic only if they are being used for business purposes for the majority of the year. 

·       *  On May 24, the Minister confirmed that the Welsh Government has legislated to increase the number of days within any 12-month period that a self-catering property is required to be made available to let from 140 to 252 days, and actually let from 70 to 182 days.* 

·       * The legislation came into force on June 14 and will have practical effect from April 1, 2023. Property owners intending to meet the amended criteria should aim to do so during the 2022-23 operating year, but compliance with the criteria will not be assessed until April. 

·        * The Welsh Government recognises that the stronger criteria may be challenging for some operators to meet. The purpose of the change is to help ensure property owners are making a fair contribution to local communities, for example by increasing their contribution to the local economy through greater letting activity or by paying council tax on their properties. The Welsh Government’s policy priority is to support sustainable communities and affordable housing, as set out in its three-pronged approach. 

·       * The Welsh Government recognises that some self-catering properties are restricted by planning conditions preventing permanent occupation as someone’s main residence. Separate regulations provide for an exception from a council tax premium for properties restricted by one type of planning condition. The Welsh Government is exploring whether further amendments are necessary in advance of the changes taking practical effect. 

·        * The Welsh Government will also be issuing revised guidance to local authorities on additional options that are available in the event that self-catering properties restricted by planning conditions do not meet the letting criteria.