The housing situation in Gwynedd has been described as critical’, with over 65% of the local population priced out of the housing market. The local authority has already taken advantage of tax powers to raise the premium rate for second homes and short-term lets (STLs) to a rate of 150% from April 2023.
Changes to the national planning framework brought in three new classes of use - main home, second home and short-term accommodation, and each local planning authority has the power to decide whether planning permission is required to change from one use class to another. Article 4 Directions are used to remove permitted development rights for the following:
- Change of use of a main residence into a second home or short-term holiday let
- Change of use of a second home to a short-term holiday let
- Change of use from a short-term holiday let to a second home
Properties that are already classed as STLs or second homes when the direction takes effect will not need to apply for permission retrospectively.
Potential unintended consequences
As this is the first use of a new power, the sector will be watching closely to evaluate how successful it is in making more homes available for residents. Gwynedd Council have identified several potential risks which will also be carefully watched by stakeholders.
Most obviously, the Direction may simply cause STLs to proliferate in areas not covered by the restrictions, replicating the problem elsewhere. It is also probable that house prices will be impacted by controls on the way owners can use their properties, although Gwynedd Council believes this is likely to be minimal.
Representing members
Propertymark will monitor the implementation of the Direction in Gwynedd and will communicate with members in and around the area to assess the impact on the wider sector.
To input your views, contact the Policy and Campaigns Team at [email protected].
