The number of second homes being put up for sale in one part of Wales has increased by more than 250% – as homeowners and businesses criticise the Welsh government’s council tax premium.
Many councils in Wales now charge an inflated tax rate for second homes, up to 300%, with the aim of freeing up rarely used housing stock for locals and generating income.
In Pembrokeshire, the council tax premium increased to 200% in April, trebling the cost for homeowners and leading to many selling up.
Image: Many suspect properties are being listed in a loophole to temporarily avoid the upped tax
Figures show that this July 135 second homes were listed for sale in the county, a rise of 255% compared to the 38 on the market at the same time last year.
Despite the influx of listings, actual sales are at a record low.
Estate agent Hamptons says second home sales accounted for just 4.5% of sales in Pembrokeshire in the first six months of 2024 – compared to 21% a decade ago.
Local agents say the properties coming onto the market are too expensive for first-time buyers – and that many homes are being listed in a loophole to avoid the increased tax.
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Rhys Jordan, from Nested Estate Agent Pembrokeshire, told Sky News the new policy wasn’t working.
“Quite frankly, here in Pembrokeshire, wages are low. Anything in reach for first-time buyers needs to be below £250,000,” he said.
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“All they’ve done is create a glut of unsuitable properties for long-term use on to the market,” he added.
Second homes for sale are exempt from council tax for up to one year and he said properties are “definitely” being listed to avoid the new council tax premium.
Image: Rhys Jordan (left), from Nested Estate Agent Pembrokeshire, told Sky News’ Dan Whitehead that the new policy wasn’t working
“There’s no denying that many properties are priced not to sell purely to sit on the market to avoid paying council tax,” he continued.
There are also concerns that falling numbers of second homeowners will hit the local economy.
Matthew Ronowitz runs three restaurants in Tenby, employing 75 people.
He told Sky News: “I think the influx of second homeowners has helped us get more of a 12-month year for business trade, which from my point of view is a positive thing.
“It does kind of worry me that if these second homeowners feel like they’re being pushed out by the local authority with the way that they’ve structured things.
“It could impact the business and for the jobs we are able to provide for local people.”
Image: Matthew Ronowitz runs three restaurants in Tenby and said he thinks that second-home owners help bring business in beyond the summer
Further down Tenby’s high street, John Mather runs the Nook gift shop.
He said: “They’re [second homeowners] an all-year customer. Tenby has a lot of visitors that just come during the holiday times, whereas the second homeowners are here all year.
“They kit out their homes, they’ve got a disposable income, and they support the businesses in town.”
Ifor William Hywel has owned his second home in Tenby harbour for the last 30 years.
His council tax for the property has risen from around £2,000 to £7,000 a year.
“I understand the theory behind it, but frankly I don’t think it works. It’s just another tax,” he said.
Image: Ifor William Hywel has owned his second home in Tenby harbour for the last 30 years and thinks the new policy won’t work
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He doesn’t think the policy will help first-time buyers:
“Just look at property values. There’s no way that first-time buyers can actually afford properties like this one. It’s going to drive people away.”
The council hopes the premium will bring in more than £10m a year.
Cabinet member for corporate finance and efficiencies Cllr Joshua Beynon said: “We’re not trying to ruin the tourist industry locally, we’re trying to find the balance.”
Image: Cllr Joshua Beynon told Sky News: ‘We’re not trying to ruin the tourist industry locally, we’re trying to find the balance’
He added: “My view is someone living in that house all year round, buying from local shops, contributing to the local economy, whether that’s through work or whether through spending, is far more effective than having someone in a second home who doesn’t spend as much time here in Pembrokeshire.”
A Welsh government spokesperson said: “We will continue to monitor the effects of this legislation to ensure it is achieving its intended goals.”
A BBC board member has resigned after criticising “governance issues” at the top of the corporation.
Shumeet Banerji confirmed the news in a letter on Friday, according to BBC News.
It comes after the corporation’s director-general Tim Davie and chief executive of BBC News Deborah Turness resigned earlier this month after a row over the editing of a Panorama documentary on Donald Trump.
This breaking news story is being updated and more details will be published shortly.
The former leader of Reform UK in Wales has been sentenced to 10 and a half years after he admitted accepting tens of thousands of pounds in cash to make pro-Russian statements to the media and European Parliament.
Nathan Gill had “abused a position of significant authority and trust” and was “motivated by financial and political gain”, said Mrs Justice Cheema-Grubb during remarks at the Old Bailey on Friday.
Image: Nathan Gill is surrounded by media as he arrives at the Old Bailey. Pic: PA
The Old Bailey heard his activities were linked to pro-Russian statements about Ukraine while he was a member of the UK Independence Party (UKIP) and subsequently the Brexit Party.
Following an investigation by counter-terrorism police, officers said they believe Gill likely took a minimum of £40,000 in cash and was offering to introduce other British MEPs so they could be bribed. Officers also said they believed some individuals in this case had a direct link to Vladimir Putin.
Image: Nathan Gill pleaded guilty to eight counts of bribery. Pic: Met Police
Prosecutor Mark Heywood KC previously told the court the bribery offences related to Gill’s association with pro-Russian Oleg Voloshyn, who had been a Ukrainian government official before 2014 and was sanctioned by the UK in 2022.
Gill’s activities emerged in WhatsApp messages after he was stopped at Manchester Airport on 13 September 2021.
He was about to board a flight to Russia to be an observer in elections there.
Bundles of cash recovered
Police said the messages revealed Voloshyn had tasked Gill to make pro-Russian statements on a reward basis. Counter-terrorism officers said the text of some speeches was provided to Gill, which he delivered almost word-for-word.
In other cases, he was paid to offer commentary to news outlets, such as the pro-Russian media organisation 112 Ukraine.
A search of his home in Wales also uncovered thousands in euros and dollars.
Image: Bundles of cash were recovered from Gill’s home. Pic: Met Police
Image: Pic: Met Police
Greed ‘primary motivation’
Commander Dominic Murphy, head of the Metropolitan Police Counter Terrorism Command, described Gill as being motivated by money.
“It appears… greed was his primary motivation. But I think there’s an element of him that had a pro-Russian stance as well, but only he can answer that question, to be honest with you, he never told us that.”
Image: Gill said no comment when interviewed by officers in 2022. Pic: Met Police
‘A grave betrayal of trust’
During sentencing, Mrs Justice Cheema-Grubb described Gill’s offending as “sophisticated” and “a grave betrayal of the trust vested in you by the electorate”.
She told him: “You accepted payments from foreign nationals, made statements on important international matters at their behest, utilised scripted material presented as your own, and orchestrated the involvement of other MPs.
“Your misconduct has ramifications far beyond personal honour, which is now irretrievably damaged. It erodes public confidence in democracy when politicians succumb to financial inducement.”
Image: Gill was paid to offer commentary to pro-Russian media outlet, 112 Ukraine. Pic: Met Police
Other UK politicians at risk
Commander Murphy said that police were continuing to investigate other MEPs, including some from the UK.
“What we do know from the conversations with [Oleg] Voloshyn is that Nathan Gill actually offered his services to contact other MEPs, mostly UK MEPs, to also make statements that might be supportive of a Russian position in Ukraine,” he said.
He added: “I do believe that some of the individuals in this case do have direct connections to Vladimir Putin. And I have no doubt that if we were able to, we could follow this trail and it would lead straight to Moscow.”
Image: Commander Dominic Murphy believes greed was Gill’s primary motivation
Gill led the Welsh wing of UKIP between 2014 and 2016 and was a member of the Senedd between 2016 and 2017.
He was an MEP between 2014 and 2020, but left UKIP in 2019 to join Nigel Farage’s Brexit Party – later Reform UK.
Political fallout after prison term
Police have confirmed Nigel Farage has not been part of this investigation, but political rivals have called on the Reform UK leader to launch a thorough investigation.
Defence minister Al Carns, a former colonel in the Royal Marines, said Gill’s actions were “a disgrace”. He added: “I just think wherever we see Russian influence in UK politics, it’s got to be weeded out.”
Meanwhile, Liberal Democrat leader Sir Ed Davey said “a traitor was at the very top of Reform UK”, referring to Gill, but also launched a direct attack on Mr Farage by calling him, and his party, “a danger to national security”.
“Nigel Farage himself was previously paid to be on Putin’s TV channel, Russia Today, and said he was the world leader he admires the most.
“We must all ask – where do his loyalties really lie? We need a full investigation into Russian interference in our politics,” he said.
Reform UK, which previously kicked Gill out of the party, said in a statement: “Mr Gill’s actions were reprehensible, treasonous and unforgivable. We are glad that justice has been served and fully welcome the sentence Nathan Gill has received.”
Liz Saville Roberts, Plaid Cymru’s Westminster leader, welcomed Gill’s jail sentence “for his acts of betrayal in taking bribes from Russia”.
In a statement, she said: “If the former Reform UK leader in Wales was part of a broader, co-ordinated effort to advance Moscow’s agenda within our democratic institutions, then the public deserves to know the full truth, and how far Russian money and influence reached into Nigel Farage’s inner circle.”
Image: A poster put up in motorway service station toilets by the NCA. Pic: PA
According to the NCA, the enterprise is so prolific that it purchased a bank to facilitate payments that supported Russia’s military efforts and helped sidestep sanctions.
Posters have been put up in motorway service stations to target couriers, which warn it is “just a matter of time” before they will be arrested.
The NCA’s deputy director for economic crime, Sal Melki, has warned the threat posed by this money laundering network is significant.
He added: “Cash couriers play an intrinsic role in this global scheme. They are in our communities and making the criminal ecosystem function – because if you cannot profit from your crimes, why bother.
“They are paid very little for the risks they take and face years in prison, while those they work for enjoy huge profits.”
Mr Melki went on to warn that “easy money leads to hard time” – and earning just a few hundred pounds through laundering could lead to years behind bars.
Image: Sal Melki
The NCA says Operation Destabilise has already had an impact in criminal circles, with some members of the network now reluctant to operate in London.
Those involved in the money laundering effort have also started to charge higher fees – reflecting the difficulty of cleaning ill-gotten gains.
Cryptocurrencies are often regarded as a haven for criminals because they are perceived to be anonymous, but it is possible to trace these transactions.
Chainalysis is a company that monitors suspicious activity on blockchains, a type of database that keeps records of who sends and receives digital assets – as well as how much.
Its vice president of communications Madeleine Kennedy told Sky News: “Public blockchains are transparent by design, which makes cryptocurrencies a poor vehicle for money laundering.
“With the right tools, law enforcement can trace illicit funds – whether they’re connected to drug trafficking, sanctions evasion, or cybercrime – and use those insights to disrupt networks and recover assets.”
Last December, a global investigation led by the NCA smashed two networks whose money laundering activities were prevalent in 30 countries.
Bundles of cash were seized during raids, with detectives describing Smart and TGR as the invisible link between “Russian elites, crypto-rich cybercriminals and drug gangs in the UK”.
One of the network’s ringleaders, a Russian national called Ekatarina Zhdanova, is currently in custody in France and awaiting trial for separate financial offences.
Security minister Dan Jarvis added: “This complex operation has exposed the corrupt tactics Russia used to avoid sanctions and fund its illegal war in Ukraine.
“We are working tirelessly to detect, disrupt and prosecute anyone engaging in activity for a hostile foreign state. It will never be tolerated on our streets.”