Council tax hike on second homes triggers surge in sell-offs – and mixed emotions
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.
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.
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.
“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.
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.”
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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.
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.”
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.”
Nigel Farage has told Sky News he “can’t be pushed or bullied” by anybody after Elon Musk said the Reform MP “doesn’t have what it takes” to lead his party.
In an interview with Sky’s political correspondent Ali Fortescue, Mr Farage said he has spoken with the billionaire owner of X since his criticism on 5 January, when Mr Musk said: “The Reform Party needs a new leader. Farage doesn’t have what it takes.”
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Asked if the pair are still friends, Mr Farage said: “Of course we’re friends. He just says what he thinks at any moment in time.”
He added he has “been in touch” with Mr Musk, though wouldn’t divulge what they had discussed.
“Look, he said lots of supportive things. He said one thing that wasn’t supportive. I mean, that’s just the way it is,” Mr Farage said.
Musk and Farage met in December. Pic: PA
Asked if he was afraid to criticise the tech mogul, the Clacton MP said the situation was “the opposite”, and he openly disagreed with Mr Musk on his views on far-right activist Tommy Robinson.
Mr Farage said: “What he [Musk] was saying online was that effectively Tommy Robinson was a political prisoner and I wouldn’t go along with that.
“If I had gone along with that, he wouldn’t have put out a tweet that was against me.
“By the way, you know, I can’t be pushed or bullied or made to change by anybody.
“I stick to what I believe.”
Mr Musk has endorsed Robinson and claimed he was “telling the truth” about grooming gangs, writing on X: “Free Tommy Robinson”.
But Mr Farage said that Robinson, who is serving an 18-month jail term for contempt of court, isn’t welcome in Reform UK and neither are his supporters.
He said: “If people within Reform think Tommy Robinson should be a member of Reform and play a central role in Reform, that disagreement is absolutely fundamental.
“I’ve never wanted to work with people who were active in the BNP. I’ve made that clear right throughout the last decade of my on/off political career. So that’s what the point of difference is.”
Despite their disagreement, Mr Farage said he is confident Mr Musk will continue to support Reform and “may well” still give money to it.
The entrepreneur has previously spoken positively about Reform UK and there have been suggestions he could make a multi-million-pound donation in its favour.
Devolution plans ‘denial of democracy’
Mr Farage was speaking from Reform’s South East of England Conference, one of a series of regional events aimed at building up the party’s support base.
Elsewhere in the interview, he hit out at the Labour government’s devolution plans which could see some local elections scheduled for May postponed.
This would apply when councils seek permission to reorganise, so that smaller district authorities merge with other nearby ones to give them more sway over their area.
Mr Farage, who is hoping to make gains in the spring contests, claimed the plans are not about devolution but about “elections being cancelled”.
“I thought only dictators cancelled elections. This is unbelievable and devolution or a change to local government structures is being used as an excuse,” he said.
Reform UK leader Nigel Farage earlier this month. Pic: PA
He claimed Tory-controlled councils are “grabbing it like it’s a life belt”, because they fear losing seats to Reform.
“It’s an absolute denial of democracy,” he added.
Mr Farage was also asked why many Reform members don’t like to speak on camera about why they support his party.
He said he did not accept there was a toxicity associated with Reform and claimed there was “institutional bias against anybody that isn’t left of centre”.
Specialist search teams, police dogs and divers have been dispatched to find two sisters who vanished in Aberdeen three days ago.
Eliza and Henrietta Huszti, both 32, were last seen on CCTV in the city’s Market Street at Victoria Bridge at about 2.12am on Tuesday.
The siblings were captured crossing the bridge and turning right onto a footpath next to the River Dee in the direction of Aberdeen Boat Club.
Henrietta Huszti. Pic: Police Scotland
Eliza Huszti. Pic: Police Scotland
Police Scotland has launched a major search and said it is carrying out “extensive inquires” in an effort to find the women.
Chief Inspector Darren Bruce said: “Local officers, led by specialist search advisors, are being assisted by resources including police dogs and our marine unit.”
Aberdeenshire Drone Services told Sky News it has offered to help in the search and is waiting to hear back from Police Scotland.
CCTV of the sisters. Pic: Police Scotland
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The sisters, from Aberdeen city centre, are described as slim with long brown hair.
Police said the Torry side of Victoria Bridge where the sisters were last seen contains many commercial and industrial units, with searches taking place in the vicinity.
The force urged businesses in and around the South Esplanade and Menzies Road area to review CCTV footage recorded in the early hours of Tuesday in case it captured anything of significance.
Drivers with relevant dashcam footage are also urged to come forward.
CI Bruce added: “We are continuing to speak to people who know Eliza and Henrietta and we urge anyone who has seen them or who has any information regarding their whereabouts to please contact 101.”
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