The specific policy decisions covered are:
- The introduction of the “182 day rule”.
- Increased council tax premiums on properties defined as second homes.
- The introduction of Article 4 regulations on second homes and FHLs in Gwynedd.
- The Renting Home (Wales) Act and subsequent changes to regulation in the private letting market.
These policies form part of a raft of measures introduced by the Welsh Government to provide:
- Support addressing affordability and availability of housing.
- A regulatory framework and system covering planning law and the introduction of a statutory registration scheme for holiday accommodation.
- A fairer contribution using national and local taxation systems to ensure second home owners make a fair and effective contribution to the communities in which they buy.
Wales has seen an influx of properties—specifically second homes and some FHLs—onto the open market in the past year, with some areas reporting a 300% increase in properties on the market. The reasons for this are complex but Welsh Government policy has played a part in driving this increase. Other reasons include a resettling of the housing market following the spike in demand driven by the Covid pandemic.
Whilst some property prices are reducing as a result of increased supply and decreased demand, and the reversal of the purchase boom inspired by the pandemic, the properties available tend not to be suitable for local affordable housing occupancy.
