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.”
Read more from Sky News:
Strictly returns despite controversy
PM faces investigation over wife’s ‘free clothes’
Prince Harry turns 40: His life in 40 pictures
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
Keep up with all the latest news from the UK and around the world by following Sky News
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.”
A woman who was stabbed to death in north London has been named by police – as a man was arrested on suspicion of murder.
Pamela Munro, 45, was found with a stab wound and died at the scene in Ayley Croft, Enfield, on Saturday evening, the Metropolitan Police said.
A 29-year-old man was arrested on suspicion of murder on Monday and is in custody, the force added.
Detective Chief Inspector Neil John said: “Investigating officers have worked relentlessly across the weekend to investigate the circumstances around Pamela’s death.
“We continue to support her family who are understandably devastated.”
Police at the scene at Ayley Croft in Enfield
Read more from Sky News:
Fresh appeal over student’s murder
100 firefighters battle flats blaze
The Met Police has asked anyone with information or who was driving through Ayley Court between 6.30pm and 7.30pm on Saturday and may have dashcam footage to contact the force.
A “British man” has died after being beaten and set on fire by a mob in Ecuador, according to reports by media in the South American country.
According to reports, the man – who has not been officially identified – had been detained by police after being accused of being involved in a fatal shooting.
Ecuadorian news outlet Ecuavisa reported that the man had been taken to a police station Playas del Cuyabeno, a remote village in the Amazon rainforest.
While there, a group broke into the station and took the man away. He was then set on fire in the street, it is reported, and died from his burns.
The incident reportedly happened in the Playas del Cuyabeno area of Sucumbios province
Another local report, from EXTRA.ec, said that specialist police units had been slow to arrive due to the geographical conditions of the area – which is accessible by river.
Read more from Sky News:
IDF finds ‘failings’ over attack on aid workers
Pope blesses Easter crowds from popemobile
According to reports, police officers at the station apparently decided they could not intervene when the mob arrived out of concerns for their own safety.
It is understood the UK Foreign Office is following up reports about the incident and working with local authorities to confirm the details.
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports1 year agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business3 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway