Impact assessments
An interim independent evaluation report on the Welsh Government's second homes pilot will be available in November 2024. It will set out early findings, including data mapping and exploratory research.
The Welsh Government’s broader agenda focuses on increasing housing supply and ensuring that local people are not priced out of their communities. A further impact assessment will take place following the pilot’s extension.
Assessing interventions to support local communities
Launched in July 2022, the pilot scheme is aimed at curbing second-home purchases and helping more first-time buyers enter the housing market with the potential of government intervention to improve access to homeownership in rural and coastal communities, a challenge that Propertymark has been vocal about for years.
Double tax on empty homes takes effect on 1 April 2024
Homes in England with no residents will attract a council tax premium of up to 100% from next month as tax reforms aimed at supporting people in areas where empty properties prevent them from finding affordable housing come into force.
Propertymark stance representing our members
However, earlier this year, Propertymark looked at the unintended implications of introducing the schemes Article 4 powers in Gwynedd, which saw property owners in the designated area having to gain planning permission before changing the use of a primary home into a second home or short-term holiday accommodation.
Some local property owners and stakeholders believe the approach may limit housing market flexibility and impact those who rely on tourism and second-home ownership for income. There are ongoing discussions about balancing community housing needs with economic considerations.
First use of Article 4 powers to control short-term lets confirmed
The implementation of the new rules will mean property owners in the designated area must gain planning permission before changing the use of a main home into a second home or short-term holiday accommodation. Gwynedd Council will bring the Direction into effect from 1 September 2024.
Propertymark has long called for targeted strategies to address regional disparities in the housing market, disproportionately affecting areas with high levels of short-term lets (STLs).
We continue to urge the UK Government to introduce a centrally run licensing regime for STLs, with standards for the safety of homes and the suitability of hosts. This would address the growing imbalance between the private rented sector and STLs, which contributes to increasing rents and a shortage of long-term homes. It would also include incentives to increase investment in the PRS, making the proposition for landlords more balanced and ensuring an adequate supply of homes is maintained.
Failure to prioritise local homes will stunt the long-term growth of communities
MPs debated the regulation of short-term lets (STL) and second homes in England on 23 October 2024, and Propertymark’s briefing pack was shared with those taking part to ensure they were equipped with key statistics and vital member insight. Whilst policymaking should recognise the economic benefits of the tourism sector, there is an urgent need to create and protect a healthy and balanced property ecosystem as the UK tackles the housing and cost-of-living crises.
As the scheme progresses, Propertymark will continue to engage with policymakers to ensure that the lessons learned from the pilot can be applied more broadly and provide first-time buyers more opportunities to access affordable housing across the UK.
