The First Minister of Wales, Mark Drakeford and the leader of Plaid Cymru, Adam Price, have announced a package of measures intended to address the high numbers of second homes in Wales.

The measures now announced include:

  • The introduction of a statutory licensing scheme for all visitor accommodation, including short-term Holiday lets.
    • This will make it a requirement to obtain a license and is intended to raise standards in tourism.
  • The development of a national framework to allow local authorities to request increased Land Transaction Tax rates for second homes and holiday lets to be applied in their local area.
    • This follows the December 2021 consultation ‘Local variation to land transaction tax rates for second homes, short-term holiday lets and potentially other additional residential properties which closed in March 2022.
  • Changes to planning regulations to introduce three new planning use clauses: a primary home, second home and short-term holiday accommodation.
    • Local planning authorities will be able to require planning permission for change of use from one class to another. 
    • Local authorities will also be given the ability to control the number of second homes and holiday lets in any community.

Proposals similar to the first announcement, in respect of the registration of tourist accommodation, are currently being Consulted on in England.

Changes to the Welsh rates of Council Tax on second homes and long-term empty properties, and the qualifying conditions for Business Rates in respect of commercially let self-catering accommodation were Announced in March 2022 as part of Wales’ response to increasing second homes and unaffordable housing in many communities.

Useful guides on this topic

Furnished Holiday Letting
What is Furnished Holiday Letting? How do you qualify for Furnished Holiday Letting? What are the rules for Furnished Holiday Letting?

Welsh Land Transaction Tax
What is Land Transaction Tax? How does it operate? What reliefs are available? 

Welsh LTT Rates
What are Welsh Land Transaction Tax (LTT) Rates? How do you calculate Welsh Land Transaction Tax?

External link

Welsh Government: New package of measures to address high numbers of second homes

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