NEW planning laws have been revealed by the Welsh Government in a bid to tackle second homes in Wales.
First Minister Mark Drakeford and Adam Price, leader of Plaid Cymru, set out the next steps in a programme of actions to help create thriving communities and to support people to afford a home.
The package of measures includes:
• Changes to planning regulations by the end of the summer. These will introduce three new planning use classes – a primary home, a second home and short-term holiday accommodation. Local planning authorities, where they have evidence, will be able to make amendments to the planning system to require planning permission for change of use from one class to another. The government will also introduce changes to national planning policy to give local authorities the ability to control 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. This will help raise standards across the tourism industry.
• Following a consultation about varying land transaction tax locally in areas with large numbers of second homes, work started on Monday, 4 July with local authorities to develop a national framework so they can request increased land transaction tax rates for second homes and holiday lets to be applied in their local area.
The Welsh Government has already introduced a range of measures to address the issue of second homes, including giving councils the discretionary power to increase council tax premiums on second and empty homes and it has changed the rules on holiday lets so owners and operators make a fair contribution to their local communities.
Mr Drakeford said: “We are today setting out the next steps in a radical programme to ensure everyone has the opportunity to afford to live in their local community – whether that’s buying or renting a home.
“We have a shared ambition for Wales to be a nation of thriving communities – a country where people do not have to leave to find good and rewarding work and one which people want to come to visit and to live.
“Tourism is vital to our economy but having too many holiday properties and second homes, which are empty for much of the year, does not make for healthy local communities and prices people out of the local housing market.
“There is no single, simple solution to these issues. Any action we take must be fair. We do not want to create any unintended consequences, which could destabilise the wider housing market or make it harder for people to rent or buy.”
Mr Price added: “We are committed to using a range of planning, taxation and property levers to tackle the issue of second and unaffordable homes – and to do so with urgency.
“The package of purposeful measures that have been developed as a result of the constructive cooperation between Plaid Cymru and the government in this area will, together, begin to address the injustices in our housing system and make a real difference to people and communities right across our nation.
“The aim is to give everyone ‘yr hawl i fyw adra’– the ability to live and work in the communities in which they grew up.”
Local authorities welcome new measures
Gwynedd and Ceredigion county councils have welcomed the announcement.
The leader of Gwynedd council, Dyfrig Siencyn, said: “This announcement is a further positive step in the effort to tackle the second homes crisis.
“I’m very pleased to see that our calls as a council have been incorporated in this announcement. We now look forward to continue working with Welsh Government to ensure positive change in this crucial policy area.
“The current situation – where people are priced out of their communities – is completely unsustainable and unacceptable. This intervention is much needed to ensure that people can access suitable housing in their communities.
“We are pleased that the Government has listened to our arguments and is acting to give local government powers through the planning system to address the impact of second homes on our villages and towns.
“As a council, we have been calling specifically for a mandatory licensing system for short-term holiday accommodation. We are extremely pleased that the government has accepted our arguments and have included this essential measure in the proposal.
“We are looking forward to receiving more details from the Government about the national plan to introduce Land Transactions Tax and council mortgages. Every initiative that facilitates fair opportunities for first time buyers to be able to afford houses in their own communities is to be warmly welcomed.
“This announcement is the result of years of lobbying by Gwynedd Council. We have presented detailed evidence about the crisis and have worked in partnership with Welsh Government to develop practical recommendations to tackle the situation.
“We look forward to learning more about these measures. Above all, we want to continue to work with Welsh Government to ensure that these plans are effectively implemented at grass roots level as soon as possible.”
In Ceredigion, a council spokesperson said: “Ceredigion County Council welcomes the announcement made by the Welsh Government. We will need to consider the details as they emerge and prepare papers in due course for Cabinet and Council to consider.”