The Taxation of Second Homes

Part of 1. Questions to the First Minister – in the Senedd at 2:07 pm on 16 October 2018.

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Photo of Carwyn Jones Carwyn Jones Labour 2:07, 16 October 2018

(Translated)

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.