5. Will the First Minister make a statement on the Welsh Government's policy on the taxation of second homes? OAQ52794

We are developing our tax policies to meet the specific needs of Wales, in line with the principles set out in our tax policy framework. This includes our approach to the taxation of second homes.

I'm sure you'd agree that the fact that 5 million people in Britain now own two or more homes, whilst almost 700,000 people are reliant on food packs from the Trussell Trust charity is one of the clearest signals that our society is increasingly inequitable and unfair.

There are 5,000 second homes in Gwynedd, whilst almost 2,000 are on the waiting list for social housing in the county. I am pleased to see that you, at last, following pressure from Plaid Cymru, are now starting to tackle the anomaly that means that some second home owners don't pay council tax or business rates, which is a huge loss to the public purse. But far more needs to be done to help families who are priced out of the market by the existence of an increasing number of second homes in their communities. One simple thing that could be done in Wales is to make a minor change to the planning system and make it a requirement for any property to have planning permission before it can become a second home, which would then allow councils to get better control of the situation. Do you agree that this change is required as a matter of urgency?

We've looked at this, and it isn't as easy as that because what happens then, for example, in Cardiff. where many flats are erected and some are second homes? Does that mean that you have to have, for example, planning permission for each one of those, and, in particular, with second homes, what constitutes a second home? If a person lives in it for half the time, but in another for half the time, which is the second home? If it is in England, you could say, 'Well, this is my main home, and my second home is in England.' I understand the point that the Member makes, but it's not quite that simple.

What is the solution? We have ensured that councils can charge more council tax on second homes, and we've ensured that people who purchase second homes have to pay the land purchase tax; that is also true. But, also, we must have a planning system that is sensitive to the linguistic background of the area, particularly, but, ultimately, we need more housing to ensure that local people don't have to compete with incomers and also that there can be a mix of housing so that people can ensure that they have a choice in the area. So, we need more housing and more affordable housing in order to ensure that people can live within their communities. I understand that it's very difficult to do so in some parts of Wales.

First Minister, I do agree that housing is an asset like no other, really, and has to be treated with its social dimension very much in mind. For this reason, I do agree that Government can look at policies like a premium on the council tax. Where you do that, however, shouldn't it also be, at the very least, the guidance that any extra revenue so generated is then reinvested in affordable and social housing?

Well, I would hope that local councils do that anyway. We know that there are many local authorities in Wales who are building council houses. We know that in rural Wales particularly—I think Powys is the example I always use, it has probably sold half of its social housing stock from the end of the 1970s onwards. So many houses were sold and they never found their way back into the hands of people who could afford to buy them because the prices had gone up so far. So, yes, it is hugely important that there is more affordable housing—some will be rented, some not. I was with a building company last week, for example, who said to me that 70 per cent of the houses they sell are sold through Help to Buy, without which, they probably would find it difficult to sustain their current level of activity.

But it is hugely important that we're able to provide more houses across Wales, but particularly in rural Wales, where there is not as much choice in terms of house size and in terms of price. How will we do that? Well, of course, we are on target to deliver 20,000 affordable homes by the end of this Assembly term, which will make a significant contribution.