Holiday Home Ownership

2. Questions to the Minister for Housing and Local Government – in the Senedd on 13 November 2019.

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Photo of Mark Reckless Mark Reckless Conservative

(Translated)

8. What assessment has the Minister made of the impact that holiday home ownership is having on housing provision in Wales? OAQ54672

Photo of Julie James Julie James Labour 2:56, 13 November 2019

We recognise that, in some parts of Wales, holiday or second-home ownership does impact on the availability and price of homes. Whilst councils are best placed to understand housing need in their areas, we are supporting a range of measures, including introducing powers to apply council tax premiums.

Photo of Mark Reckless Mark Reckless Conservative

Thank you. I'm going to use the phrase 'holiday home ownership', which I think covers a range from two categories: the 'second home' the Minister referred to, perhaps only used for a few weeks—or perhaps, at most, months—a year, compared to a property that is let out to a wide range of holidaymakers, more as a commercial proposition. I just wonder, as housing Minister, do you consider there is a difference in terms of impact on housing provision elsewhere of those two different models, and do you see one as more attractive than the other, or one we would want to incentivise or not? If so, will you seek to ensure joined-up policy making by Welsh Government by having appropriate discussions with ministerial colleagues?

Photo of Julie James Julie James Labour 2:57, 13 November 2019

No. As I said, I think the local authority is best placed to understand the challenge that a specific sort of second home, empty home or holiday home—whatever you want to call it—can present to the supply of affordable housing in that community. That's why we introduced the powers for authorities to apply council tax premiums. Since 1 April 2017, local authorities have been able to charge a premium of up to 100 per cent of the standard rate of council tax on second homes and long-term empty properties.

The powers to charge council tax premiums on second homes and long-term empty homes are discretionary powers introduced to assist local authorities to manage issues in their local housing supply. Wales remains the only part of the UK that has given local authorities these powers in relation to second homes, and we are working closely with local authorities and other partners to meet our target of delivering affordable homes across Wales in order to assist with the housing supply that we think this issue addresses.