Diolch, Llywydd. There has been considerable coverage and debate over recent months about second homes and, beyond that, affordable housing for young people in Wales. We are keenly aware of the challenges being faced and have already made clear strides towards addressing these. However, we can and will do more. In undertaking this work, we have listened to and acted on calls from communities across Wales. We have held cross-party discussions, and our clear determination to address the challenges being faced is reflected in our programme for government and in ministerial commitments.

We have welcomed the excellent work and clear recommendations from Dr Simon Brooks in his report, 'Second homes: developing new policies in Wales'. Indeed, the Minister for Education and the Welsh Language and I have written to Dr Brooks, setting out our response and outlining our next steps. Llywydd, this is a Government determined to take real and ambitious action, and today I am setting out our three-pronged approach to addressing the challenges facing our communities.

Much of the second home debate has focused on a number of our Welsh-speaking communities, chiefly in rural and coastal parts of the country. We know there is a real and serious linguistic dimension to this challenge. It's one that cuts across our commitment to Cymraeg 2050 and the critical importance of ensuring the vitality of Welsh as a community language. As well as significant linguistic considerations, a core part of the issue being faced is affordable housing in general, and not just in Wales, but in many parts of the UK and indeed beyond.

Building on our outstanding success in the last term, when we exceeded our affordable homes target, our programme for government reflects this continued commitment to deliver 20,000 new homes across Wales. Crucially, these will be low-carbon properties for rent in the social sector. In support of this commitment, we have almost doubled our financial investment this year—an ambitious and profoundly significant investment by any reckoning, and one that will offer a clear, tangible benefit to local people and to their communities. 

We are also committed to developing effective tax, planning and housing measures to ensure that the interests of local people are protected. And we are not turning away from our distinct position on land transaction tax for second home purchases. In all of this, we will protect the particular interests of our Welsh language communities through a Welsh language communities housing plan, while retaining a hold on affordability across all communities in Wales.

The three-pronged approach is the start of real and concerted action to fairly manage second homes over this Senedd term, while also ensuring everyone has access to good-quality and affordable housing. First, support: to address issues of affordability, we will target and tailor our existing housing programmes across tenures. In doing this, we will draw on experiences of rolling out successful programmes such as homebuy, and promoting the sort of creative solutions we have seen in many parts of Wales. Over this coming summer, my officials will put together a package that we can start to trial. We’ll evaluate it thoroughly so that we can be assured it makes a clear, quantifiable difference.

Secondly, our regulatory framework and the system. To address the issue of second homes, we will provide for better management of additional second homes and short-term holiday lets through changes to the regulatory framework and system. Parts of the system need to change, and we will change them. We will establish a statutory registration scheme for all holiday accommodation, including short-term lets. We will consider the legal complexities of how we can test changes to the planning system, and I am also determined that all systems either in place or explored will champion social justice.

And third, a fairer contribution, so that national and local taxation systems ensure that second home owners make a fair and effective contribution to the communities in which they buy. As part of this work, we are looking very closely at circumstances in which certain properties can be transferred to the non-domestic rating list and, as a result, be sometimes liable for neither council tax nor non-domestic rates. That simply cannot be right and we will bring forward proposals to address this scenario. We know that second home owners can and often do support local economies and we cherish our reputation as a welcoming society. It is important though that all in Wales make a fair contribution. That is why we are reviewing local tax arrangements and, over the summer, we will bring forward options for consultation.

None of this is straightforward of course, which is something Dr Brooks also recognises. However, that will not deter us. We will pilot our approaches, working with partners, over the summer. We have already received one offer to take part in a pilot and I have written to invite further scoping discussions. Our actions in this area represent bold, cross-Government working. Ministers across the Welsh Government have been and will continue to be involved. We have established a cross-portfolio task group, and will continue our dialogue across parties. As I have said previously, no one party has the monopoly on good ideas.

Over the summer we will work with stakeholders to agree the basis and location or locations for an evaluated pilot; develop a coherent and effective support package to trial within the pilot; begin to develop a statutory registration scheme for all holiday accommodation and continue to engage with stakeholders on the shape of the model we will implement, including both the registration and inspection arrangements. We will consult on possible changes to local taxes to support local authorities in managing the impact of second homes and self-catered accommodation, and we will establish a draft Welsh language communities housing plan for consultation in the autumn. I hope that Members will support us as we get to work on this challenging but very important issue. Diolch, Llywydd.