The Welsh Government is facing criticism over its scheme to charge second-home owners a council tax premium of up to 300%, with some warning it could turn tourist hotspots into “ghost towns”.
In April 2023 the amount councils in Wales could charge second-home owners rose to 300%, in a bid to free up housing stock for locals.
In addition, the number of nights holiday let owners must fill their properties to avoid the second home tax and be eligible for business rates rose from 70 to 182.
But holiday accommodation providers say the new threshold is pushing many out of business.
Image: Gwion Llwyd, represents around 200 holiday let owners in Wales
“We’ve got examples who are already realising that this is going to be a really hard target for them to achieve,” says Gwion Llwyd, who represents around 200 holiday let owners in Wales.
He says some are already selling up.
“They’re just going to give up and going to come out of the market unfortunately,” he added.
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“They’re going to take the kitchen out, rip the bathroom out so it doesn’t class as accommodation anymore, and give up on the business. So that barn will sit empty now and contribute nothing to the local economy.”
In part, holiday properties being sold because of the increased premium demonstrates the government’s plan is working.
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But in the seaside resort of Abersoch, Gwynedd, the policy is causing anger.
The area charges a 150% second home council tax premium, the highest rate in Wales.
For decades a playground for wealthy outsiders, more than 54% of properties in the village are either second homes or holiday lets, with most locals priced out.
The village is home to the most expensive street in Wales – where clifftop houses average more than £1.7m. On the beach below, a small boat shed is currently on the market for offers in excess of £250,000.
Nigel Jones runs a local shop and told Sky News the government’s council tax premium won’t do anything to increase affordable housing and only hit the local economy.
“They’re actually probably killing the market to be honest,” he said.
“It won’t do anyone any favours, it’ll just become a ghost town because the houses are so expensive here. I don’t think any local will ever be able to afford it. What Gwynedd [council] should do is build more houses for locals rather than tax the second homes so much.”
At the heart of the policy are local people unable to find somewhere affordable to live.
Image: Angharad Owen, from Anglesey, talks to Sky’s Dan Whitehead
Image: Eryri National Park
Angharad Owen, from Anglesey, was forced to stay in a friend’s converted shed, before finally finding a property to rent in the small village of Brynrefail, near Snowdon.
She told Sky News that since the COVID-19 pandemic, the area has changed.
“There were a lot of people coming here wanting to buy a piece of paradise,” she said.
“I have seen a number of houses up for sale and snapped up very quickly – and I’ve been looking myself because I’d like to buy a place but the prices have been going up scarily.”
She says it is mainly Airbnbs popping up.
“I’ve had neighbours who I’ve got to know and then they’ve left and the properties have changed into Airbnbs,” she added.
“I’ve seen a lot of change in a very short amount of time. It changes the whole dynamic, you lose that sense of community.”
Reacting to concerns from holiday let owners, Rebecca Evans, the Welsh Government’s minister for finance and local government, told Sky News: “We think that for a business to benefit from small business rates relief it really should be operating as a business for half of the year.
“We do know some property owners may find that particularly difficult, so we have provided local authorities with the discretion to either not apply the premium or reduce council tax to nothing in cases where they think that’s the right thing to do.”
Ms Evans admitted the second home premium is not the complete solution to solving the housing crisis.
“It’s definitely the case that some of these properties are not going to be affordable for first time buyers or local families necessarily – that’s why it’s really important we have a much wider approach,” she said.
“Premiums on council tax aren’t going to solve all of our housing issues here in Wales, but what we are doing is investing tens of millions of pounds in purchasing empty homes for example, putting those up to standard and a whole range of other interventions as well.”
Elsewhere, Scotland is continuing to consult on plans to charge double council tax, while in England some councils, such as Cornwall, are planning a similar measure.
Two motorways have been shut after human remains were found on the road.
Several drivers reported a body on the carriageway between junctions 20 and 21 of the M4 – between Almondsbury and Awkley – at about 6.40pm this evening.
The body is believed to be that of a man in his forties, whose next of kin have been told.
A police investigation to establish how the person came to be on the motorway continues.
Parts of the M4 and M48 motorways near Bristol are likely to remain closed until the early hours of Sunday morning, Avon and Somerset Police said.
In a statement, the force said: “Police are keen to hear from anyone who was travelling along that stretch of the M4 has any relevant information or dashcam footage.”
The road closures were likely to cause significant delays in and out of Wales tonight, with closures starting on the English side of the Prince of Wales Bridge and the Severn Bridge.
Sir Keir Starmer has urged Donald Trump to stand by Ukraine with a security guarantee as he warned a bad peace deal would be a “disaster for everyone”.
The prime minister is due to meet the US president for talks in Washington DC next week amid fragile relations between America and Europe after Mr Trump launched a verbal attack on President Volodymyr Zelenskyy.
The US president called Ukraine’s leader a “dictator” on Wednesday and later said Sir Keir and French President Emmanuel Macron, both of whom will visit the White House in the coming days, “haven’t done anything” to end the war.
Image: Sir Keir Starmer met with European leaders in Paris on Monday to discuss Ukraine. Pic: Reuters
Sir Keir said a good peace “can only be won through strength” and Ukraine “must have a voice in negotiations about its future”.
And he warned that a “peace deal which does not stop Putin from attacking again would be a disaster for everyone”.
Writing in The Sun on Sunday, he said Kyiv needs strong security guarantees “so the peace will last” and America “must be part of that guarantee”.
This could mean providing air defence and a promise that the US will come to the aid of a NATO country if Russia attacks them, the paper reported.
UK Defence Secretary John Healey has said “any negotiations about Ukraine cannot happen without Ukraine. We all want the fighting to end, but an insecure peace risks more war”.
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0:33
Will Trump and Starmer have a ‘Love Actually’ moment?
‘Turn the screws’ on Russia
The third anniversary of Russia’s full-scale invasion of Ukraine is on Monday.
Foreign Secretary David Lammy has said he will unveil new sanctions to “turn the screws” on Russia on Monday to coincide with the anniversary.
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Sir Keir also said the UK must increase its defence spending and play a bigger role in NATO.
And he is open to British troops playing a role in any European force in Ukraine after a peace agreement.
He added: “This is not something I say lightly.”
Sir Keir, along with other European allies and UK opposition parties, has backed Mr Zelensky as a “democratically elected leader”.
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2:25
Conflicting views over Ukraine deal
Also, Washington has warned that Europe must shoulder more of the cost of its own security.
Sir Keir is expected to use his upcoming trip to the US to confirm a timeline to raise UK defence spending from 2.3% to 2.5% of gross domestic product (GDP) in a bid to ease tensions.
It comes amid pressure from defence chiefs and opposition critics including Tory leader KemiBadenoch, who wrote to the prime minister on Saturday demanding he set out a plan for meeting the target.
:: Education secretary Bridget Phillipson, campaigner for global health and education Sarah Brown, and shadow defence secretary James Cartlidge will be discussing all the latest political stories in the UK and around the world on the Trevor Phillips on Sunday show on Sky News from 8.30am
A three-year-old girl has died after a collision between a tram and a van in Manchester city centre.
The girl was taken to hospital but died from her injuries, Greater Manchester Police (GMP) said.
“No arrests have been made and inquiries are ongoing,” the force said.
The child was a pedestrian and was not travelling in either the tram or van, GMP said.
The fatal collision happened on Mosley Street shortly before 10am, a Transport for Greater Manchester (TfGM) spokesperson said.
“All of our thoughts are with her family and loved ones at this incredibly difficult time. We are supporting police with their investigation,” a statement said.
A North West Ambulance Service spokesperson said two ambulances, a rapid response vehicle and two air ambulance crews attended the scene.
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TfGM said there was continued disruption across the Metrolink after the incident and advised people to check the Bee Network website and app for the latest travel information.
Manchester‘s Bee Network said: “Due to a road traffic collision on Mosley Street in the city centre, no tram services are operating between St Peter’s Square and Piccadilly Gardens.”
An X post from GMP’s traffic officers said: “Our officers are currently in attendance at a collision, involving a tram and another vehicle in Manchester city centre.
“We are presently trying to establish the circumstances however we envisage there will be a lengthy closure of surrounding streets near to St Peters Square.”