Owners of second homes in Wales are having to sell up. That’s no disaster: it’s a godsend | Will Hayward
www.theguardian.com
Council tax hikes on holiday homes aren’t ‘anti-English’ or detrimental to tourism. This is about preserving embattled communities, says Guardian columnist Will Hayward

geteilt von: https://sh.itjust.works/post/38301389

To try to tackle this, the Welsh Labour government, alongside Plaid Cymru, introduced measures to curb second-home ownership. This included giving councils the ability to push council tax on second homes to 300% the usual rate. They also closed a loophole whereby second-home owners could register as a business in order to pay the much lower business rates.

Gwynedd council used these powers to hike council tax to 150% in April 2023. By the end of 2024, house prices had fallen by 12.4% as second-home owners tried to sell up. In Pembrokeshire, house prices fell by 8.9% after the council increased the council tax to 200% on second homes (though this was reduced to 150% recently).

  • Honytawk@feddit.nlEnglish
    35·
    14 hours ago

    It is valued too high because houses are seen as an investment.

    Taxing them higher makes them not profitable, so they get sold.

    Meaning there is more supply, which lowers prices.

    • TheodorAlforno@feddit.orgEnglish
      15·
      9 hours ago

      It doesn’t solve the problem of rising rent. People already owning their property are not affected by this and can profit off rent increase.

      • MaggiWuerze@feddit.orgEnglish
        4·
        6 hours ago

        Most people renting out have more than one house, so this would affect them still, while not hurting the old couple that rents out parts of their house that got too big for them

        • OhNoMoreLemmy@lemmy.mlEnglish
          1·
          3 hours ago

          This actually doesn’t affect landlords because council tax is charged to people living in the house first, and only to the owner if no one is living there.

          This primarily affects second home owners and short term lets, but there’s other renting reform coming as well, and this has already dropped house prices, so it’s a start.