Welsh government facing criticism over second home tax that could turn tourist hotspots into ‘ghost towns’
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.
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.
“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.
But in the seaside resort of Abersoch, Gwynedd, the policy is causing anger.
Abersoch, Gwynedd
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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.
Angharad Owen, from Anglesey, talks to Sky’s Dan Whitehead
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.”
The Menai Bridge
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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.
England fans across the country have heaped praise on the team after winning Euro 2025, with a bus parade celebration set for Tuesday.
Sarina Wiegman’s Lionesses took home their second Euros trophy in consecutive tournaments after beating Spain 3-1 on penalties in the final.
Chloe Kelly scored the winning spot-kick following two huge saves from goalkeeper Hannah Hampton, after Alessia Russo scored an equaliser to send the game to a shootout.
As it happened: England beat Spain on penalties to retain title
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England fans celebrate across the UK
After England win, it was announced that an open-top bus parade will be held in London on Tuesday along The Mall, which will start at 12.10pm.
The celebrations will culminate in a stage ceremony at the Queen Victoria Memorial in front of Buckingham Palace at approximately 12.30pm
Fans can attend for free, and Sky News will broadcast it live.
‘You’ve made the nation proud’ – Starmer
Prime Minister Sir Keir Starmer was among the millions congratulating the Lionesses, posting on social media to praise the champions
“What a team. What a game. What drama,” he said.
“You dug deep when it mattered most and you’ve made the nation proud. History makers.”
The roof almost came off the Manchester clubhouse where Ella Toone started her journey
Nowhere was the roar for the Lionesses louder than in the Astley and Tyldesley Miners Welfare club on the outskirts of Manchester.
The club where a five-year-old Ella Toone started her journey to England stardom, like so many places across the country, hosted nail-biting, table-thumping and, ultimately, deafening watch parties.
The roof almost came off the clubhouse when Chloe Kelly’s winning penalty went in.
Red bucket hats emblazoned with Toone’s now-famous ‘Buzzing My Head Off’ catchphrase were thrown in the air.
“Absolutely ecstatic,” said Lorraine Warwick-Ellis, who runs the pathway development for women and girls at the club.
“I was very nervous, very worried about penalties but we did it in the end.”
The success of the Lionesses has driven a huge boom in the popularity of women’s and girls football in recent years. She hopes this win will have a similar effect.
“I hope it cements the girls who are already here, keeps them engaged, and I hope it brings more girls down who want to be footballers and see that it’s open for everybody.”
It had been a pretty sombre watch for much of the game after Spain took the lead – but it erupted into life after Alessia Russo’s equaliser.
The shootout was the usual emotional rollercoaster but young fans seem to have greater faith in the Lionesses.
Among the jubilant teenagers celebrating in the clubhouse were two who have followed Toone’s path to academies at professional clubs.
“It’s unbelievable, they’re amazing, Chloe Kelly, I just don’t know what to say about her,” said Natasha Greenhouse. “We knew if it went to penalties that they’d do it.”
Tamsin Gallagher said: “They’ve done it the hard way all the way through the Euros but we all believed in them. Come on England.”
The party in Manchester and around the country and only just begun.
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‘I am so incredibly proud’
Prince William and Princess Charlotte, who were in attendance at St Jakob-Park in Basel, added on social media: “What a game!
“Lionesses, you are the champions of Europe and we couldn’t be prouder of the whole team. Enjoy this moment England.”
King hails Lionesses… and calls for World Cup
In a post on the official Royal Family account on X, King Charles also sent his “most heartfelt congratulations on winning the Euros 2025” to the Lionesses.
“For more years than I care to remember, England fans have sung that famous chant ‘football’s coming home’,” he said.
“As you return home with the trophy you won at Wembley three years ago, it is a source of great pride that, through sporting skill and awesome teamwork, the Lionesses have made those words ring true.
“For this, you have my whole family’s warmest appreciation and admiration. More than that, though, you have shown through your example over past weeks that there are no setbacks so tough that defeat cannot be transformed into victory, even as the final whistle looms.”
The monarch ended his statement by saying “the next task is to bring home the World Cup in 2027 if you possibly can!”
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Culture Secretary Lisa Nandy added: “What an absolutely extraordinary achievement by our Lionesses – once again they have made history and united the country with pride and joy.”
Reform UK’s Nigel Farage said “well done” to the team and “what an absolutely fantastic watch,” while Conservative leader Kemi Badenoch said: “What an achievement. What a team!”
A man has died after suffering cardiac arrest onboard a boat attempting to reach the UK.
The vessel turned back towards Equihen beach on the French coast yesterday morning.
A nurse tried to resuscitate the man but was unsuccessful.
Pic: PA
French authorities have now launched an investigation into the circumstances.
A spokesperson for Doctors Without Borders, also known as MSF, has criticised authorities on both sides of the Channel.
Jacob Burns said: “Yet again we have a tragedy in the Channel, that is the consequence of the deadly, costly and ineffective security policies implemented by the UK and France.”
Pic: PA
Later on Saturday, a lifeboat carried migrants who have made the voyage into the Port of Dover.
Photographs showed them huddled under blankets and orange life jackets on board.
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Protesters clash over asylum hotels
Provisional statistics from the Home Office suggest almost 24,000 people have arrived on small boats in the UK so far this year.
Towns and cities across the UK have seen protests in recent days, primarily outside hotels believed to be housing asylum seekers.
Here the Lionesses are again. Another final. Another showdown with Spain.
All of a sudden, what was once so anticipated and longed for can start to seem expected rather than extraordinary.
What happened to the great underachievers of world football? They are now consistently among the final two going for glory.
At Euro 2022, the Lionesses ended England’s 56-year wait for a major trophy by beating Germany 2-1 after extra time. Pic: Reuters
No one is taking that for granted.
Especially not Leah Williamson, with the chance to retain the European Championship trophy lifted three years ago at Wembley.
“The opportunity of tomorrow and what’s on offer is the best thing in football,” the England captain said. “I think we don’t necessarily carry the weight of it and how much it means to people, but we’re aware of it because it means the same to us.”
So often they were only watching other nations making finals.
England’s first was the men winning the 1966 World Cup.
England v Spain: All you need to know
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Lionesses ‘know what win would mean to nation’
Then, with the rebirth of women’s football after bans and neglect, it was the Lionesses’ turn to make it to the finals – in 1984 and 2009.
And the Three Lions had to wait until 2021 to make it to a final, losing to Italy on penalties at Wembley.
It kickstarted an incredible run of five successive years of finals for England senior teams – with another men’s Euros final defeat in 2024.
The Lionesses have led the way, bringing football home by defeating Germany in the Euro 2022 final at Wembley.
They just missed out on going one better when reaching a first Women’s World Cup final a year later.
England manager Sarina Wiegman reacts to defeat against Spain at the Women’s World Cup final in 2023. Pic: Reuters
Lauren James looks dejected after their World Cup defeat, but is confirmed fit for Sunday’s revenge match against Spain. Pic: Reuters
Now, in Basel, comes the chance for revenge against Spain – even though no one in the England camp is saying that, publicly at least, in Switzerland.
Especially knowing how challenging a task it is coming up again against Aitana Bonmati and Alexia Putella – the recent winners of football’s biggest individual honours.
England fans celebrating after England beat Italy to reach the finals. Pic: Reuters
Given England’s history against Spain, it could be a nerve-wracking time for England fans. File pic: Action Images/Reuters
But this is Spain’s first Euros final.
And there is some fear from the world champions at England’s grit and resolve to produce comebacks late in the quarter-finals and semi-finals – with 19-year-old Michelle Agyemang’s goals integral to the fightbacks.
England celebrate their semi-final win against Italy to reach the finals. Pic: Reuters
Michelle Agyemang has propelled England to the Euro 2025 final with two vital goals. Pic: AP
Spain captain Irene Paredes reflected yesterday on how the Lionesses can flip a result late on.
But she was also discussing how their World Cup win was tarnished by the on-pitch kiss that led to former Spanish federation president Luis Rubiales being convicted of a sexual assault on striker Jenni Hermoso.
It sparked a wider clamour in Spain for improved rights and respect for women.
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“Since then [2023] we took big steps forward,” Paredes said.
“I think this idea is disappearing from society. I still believe we have to continue opening doors… we’re a reference for boys and girls in society, but we still have things to do.”
It is a reminder that while tonight is about collecting silverware, both England and Spain know that emerging as champions can drive further growth in women’s football back home.
Amid it all, they’ll try to savour just what reaching a final means and how rare they are – until recently for English and Spanish women.
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