The new Welsh Secretary, Robert Buckland MP, has criticised the Welsh Government over its plans to tackle second homes in Wales. In an interview with Newyddion S4C on Monday at the Eisteddfod, Mr Buckland said that the Welsh Government's recent decision to permit local authorities to increase council tax premiums was "heavy-handed".
The Welsh Government announced tough new rules aimed at combating the number of second homes in rural Welsh communities in March of this year. The maximum level at which local authorities can set council tax premiums on second homes and long-term empty properties will be increased to 300%, which will be effective from April 2023.
Currently, premiums are set at a maximum level of 100% and local authorities opting to apply premiums have access to additional funding, which the government has encouraged councils to use to improve the supply of affordable housing. Under the new rules however, councils will get to decide the level that is appropriate for their individual local circumstances.
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Councils will be able to apply different premiums to second homes and long-term empty dwellings. You can read more about this here. But speaking to journalist Bethan Rhys Roberts, Robert Buckland MP said that the "punitive rise" could harm tourism and local economy. He said: "I think it's tempting for me to say 'yes, there should be a cap'.
"I know a lot of local people will feel that people are being priced out of the neighbourhood, that families can't live live, generations can't live near to each other. But I think that could be an artificial downer if you like on the local economy.
"'I think part of the lifeblood of west Wales is tourism, and therefore we need to get the balance right." He added: "I think that every one of us I think, whether we live here full-time or have a second home has a responsibility I think to the local economy, and indeed, the local community.
"And I think that we should be trusting people's good sense in the way that they use homes and allow homes to be used by others. There are all sorts of, whether that is Airbnb or whatever it might be, there are all sorts of ways in which houses don't have to lie idle but become, you know, a vital part of either our economy or our community."
When asked specifically about the 300% council tax increase and whether that was a good idea, the politician replied: "I'm worried about that. I think that could drive out a lot of people who have for familial and historical reasons kept their links with Wales and who, I think any reasonable person regard as people who love the country and want to be a part of it.
"My worry is that with that sort of punitive rise, you're going to drive people away, you're going to force sales, you're going to depress house prices. I am not sure that that heavy-handed approach is the right way to deal with rural parts of Wales.
"I think they should [re-think]. I think it's causing real problems and pain in places like Pembrokeshire, where tourism is such an important part of the economy. It's all about getting the balance right. You know, I hear the arguments, I respect them, I understand the tensions , but sometimes measures like that can actually have the opposite effect than what is intended."
According to some estate agents in Wales, second home owners are already selling up over council tax hike and that the government's plan to offer affordable housing for first time buyers was already happening. When asked about his views on the young people who couldn't stay in the areas where they were brought up, Mr Buckland said that the levelling up agenda could also help in the matter.
This comes after the UK Government confirmed it will introduce a discretionary council tax premium on second homes in England through its Levelling Up and Regeneration Bill, mirroring powers already available in Wales through the Housing (Wales) Act 2014.
He said: "I don't think it's just about house prices, Bethan. It's also about opportunity, and that's why the levelling up agenda is so important. You know, why should young people have to move away from their local area in order to succeed?
"Why is it not the case that they can adopt their chosen career in the land or the area of their birth? And with technology, that is going to be more and more possible. You know, myriads of people are now working from their homes. This is possible and indeed achievable in the short-term."
A Welsh Government spokesperson said: "We believe that everybody has a right to a decent, affordable home to buy or to rent in their own communities so they can live and work locally. We’re committed to taking immediate and radical action using the planning, property and taxation systems to tackle the injustices in the current housing market, including the negative impact that second homes and unaffordable housing can have.
"The increase in discretionary council tax premiums is part of a joined-up package of proposals to tackle these issues. Local authorities may tailor the use of these powers to take account of the circumstances in their areas.”
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