6. What discussions has the Minister had with the Minister for Housing and Local Government regarding the effect of second homes on the Welsh language? OQ55538

Diolch, Neil. Ensuring that people can access affordable homes is crucial for the future sustainability of Welsh-speaking communities. This is a complex issue, of which second homes is a significant factor. I've already discussed this with the Minister for Housing and Local Government, and will continue to prioritise this matter.

I strongly urge the Minister to have discussions with Gwynedd Council, because local government can do a lot. In Gwynedd, 7,000 homes are owned by people who don't even live in Wales. Ten per cent of homes in Gwynedd are used as second homes—more than any other county in Wales. Almost 40 per cent of properties sold in Gwynedd from March 2019 to April 2020 were purchased as second homes—again, more than any other county in Wales. Houses are marketed in England for £400,000, £2 million—one £3 million, just down the road from Mynytho, the village where my wife was born and raised. Local people simply cannot afford to buy houses where they live now, with the average wage in Gwynedd being £16,000 a year. The local council in Gwynedd passed a local development plan that enables, unbelievably, family housing to be converted into holiday accommodation. So, the second home issue is an epidemic that has gone on for decades in Welsh language communities, decimating the language. So, my question, really, is: when are you going to start to do something about people avoiding tax on the second properties, when are you going to overhaul the planning system, and especially local development plans, and when is the Government going to end this scandal?

Diolch, Neil. Just, first of all, to let him know that I did have discussions, not just with Gwynedd Council members last week, but also with representatives from all the rural local authorities around Wales, and this was an issue that we discussed. And what's clear is that it's a really complex issue. We are determined to make sure that it is possible for people who are brought up in an area—that they should be able to stay in the area. But the ways of making sure that happens are rather complex.

Of course, one of the things we've done, and we've committed to, and we are delivering on, is building 20,000 new homes. We're the only nation in the UK where local authorities can charge a premium of up to 100 per cent on the standard rate of council tax on second homes. We're the only part of the UK—not even Scotland; they provided a temporary tax reduction for even buy-to-let investors, we didn't do that in Wales, we transferred some of that money into building new homes.

But I think it's really important that there is an understanding that we've been looking at this for quite a while. We're looking for a way to address this really serious issue. We've discussed it in our Welsh language advisory group, and Dr Simon Brooks is currently undertaking a review of how other areas are dealing with second homes as a part of his work with the Hywel Teifi academy, and I'm hoping that his study will help us to drive a way forward here. We have looked at Cornwall, we have looked at Scotland, we have looked at Jersey—all of them have problems associated with them. So, we're looking for an answer and we haven't come to one yet. So, we are absolutely anxious to make sure that we get the communications with Senedd Members going, and I know that the Minister for housing invited Members who were interested in this to speak to her very recently.  

Minister, second homes can be an important part of sustaining the local economy, but there is a very delicate balance to be struck, and I do think that part of the solution is building more—both social housing, which doesn't create this problem, but also it is open to councils, in developing land, to covenant it to a local market. For new build, it does seem to me that that might be an interesting development. I don't think that you can do it retrospectively, because you have to face the fact that these homes are often sold by local people, quite naturally, to the highest bidder, and that's often when they become, then, second homes.

Thank you. Well, I can assure you that we will maintain our support for the social housing grant, and that is the primary source of subsidy for affordable housing in Wales. That is, of course, making a contribution to that 20,000 target. The planning system is something where there is—. We have tried to look at whether there are means of, perhaps, tightening up the planning system so you can't switch from it being a home to a place you can rent. There are some really difficult legal problems associated with that. But, as you say, we have got to get this balance right, because it's also—. Tourism is a really important aspect of those communities, but, at the moment, I think that we have to recognise that the balance in some communities has simply gone too far.

Thank you very much, Minister.