Sharp rise in second homes for sale following tax hike

sharp-rise-in-second-homes-for-sale-following-tax-hike

There has been a significant increase in the number of second homes for sale in Pembrokeshire following a substantial council tax rise.

Fresh data shows that in July, there were 135 second homes listed for sale, up from just 38 in the corresponding month last year, marking an increase of 255%.

This increase comes after Pembrokeshire County Council introduced a 200% council tax premium in April, effectively tripling the bills for second home owners.

In response, many property owners have opted to put their homes on the market, with the number of listed second homes in the county rising by 97 in just 12 months. As of 1 July, the total number of second homes registered in the area has dropped slightly from 3,364 in 2023 to 3,271.

The Welsh government’s recent policy changes have granted local authorities the power to charge up to 300% in council tax premiums on second homes, aiming to make housing more affordable for local residents.

The number of second homes on sale in the county as of 1 July was up by 97 in 12 months – an increase of 255%.

Council figures show there are now 3,271 properties registered as second homes, down from 3,364 in 2023.

Those listed as self catering holiday units have also dropped from 2,621 to 2,425.

Hedd Ladd Lewis, a campaigner for housing market reform, said the increase in the number of second homes on sale was “encouraging”, but questioned whether local people could afford them.

“What we have is an open market and local people who earn wages – on average around £28,000 a year – will not be able to compete [for houses],” he said.

He lives in Newport, where 30% of the properties are second homes or holiday lets.

“There is a huge injustice when it comes to the housing market and we need to see some sort of property act which will ensure that the local community has a legal right to a house,” he added.

But Neil Evans, the owner of West Wales Properties estate agents, said the council tax premium has had a “huge impact”, especially in places such as St Davids and Newport.

“We’re seeing properties come on the market at such a volume that I’ve never seen in 30 years,” he explained.

“[Second home owners] can purchase a property on the other side of the Severn Bridge and have none of this.

“I think what we’re finding generally is that it’s affected the holiday trade as well.”

Aled Thomas, a local Conservative councillor who opposes the council tax premium, said: “Tourism is one of the things that brings money into the economy, but people are going out of business because of these policies.

“What we need to do is to build more houses.

“Only around 20 to 30 houses have been built by the council in the last 30 years and that is disgraceful.”

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