4. Statement by the Minister for Climate Change: Affordability, Second Homes and the Welsh Language

Part of the debate – in the Senedd at 3:56 pm on 6 July 2021.

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Photo of Mabon ap Gwynfor Mabon ap Gwynfor Plaid Cymru 3:56, 6 July 2021

(Translated)

Thank you very much, Minister, for this statement. I also want to put on record how disappointed I was to see that this statement had been made public to the media yesterday evening, and that you were in St David's filming yesterday, and that we'd heard nothing about it until today. But I trust that that will not happen again.

If I could first of all look at the statement in general terms, as you've mentioned, this Senedd has already passed a motion stating that there is a housing crisis. You'll remember us doing that some three weeks ago, and in fairness, you as a Government didn't oppose that motion—in fact, you supported it. The second homes crisis is just one symptom of a far deeper crisis that is facing communities the length and breadth of Wales. It means that people from Anglesey to Monmouthshire can't afford to buy homes in their own communities. I mentioned in that debate some weeks ago that this is a result of a housing market run wild, and Government after Government that fear intervention in the market to ensure that houses are homes rather than a financial investment or a luxury status symbol to be enjoyed occasionally.

But now to the details of your statement. I'm pleased to see the statement providing a little more detail than what was put forward in the media. I welcome the fact that there is recognition at last that there is a problem facing our communities—in this case, Welsh-speaking communities. But the pledges, and the commitment to further consultation, half promises and further delay, do lead one to think that the Government doesn't really appreciate the real gravity of the situation. It's not a problem, it's a crisis.

The statutory registration scheme for all holiday accommodation is to be welcomed. At last we will have improved data and detailed information as to who is actually running a legal business and who is trying to play the system. This could assist us in trying to close the loophole that enables people to convert their housing to business rates. I welcome the fact that you have committed to looking at that loophole. But in order to save you from wasting any more time on consultation yet again, I will inform you right now that the Association of Accounting Technicians has already looked at this issue, and has made recommendations to the Westminster Government, and the Westminster Government, under the Conservatives in England, is looking to close this very loophole already. So, why won't you take action on this immediately?

You mentioned trialling change of use within planning in order to create a new section for short-term lets. Well, why trial this? We don't need a pilot period. There is already precedent in place for this with homes in multiple occupation. We don't need new legislation, we don't need to waste any more time looking at piloting things. You must be brave and take action. Will you, therefore, commit to taking action on this as soon as possible?

More concerning yet is the ambiguity in your words in talking about trialling a new section for second homes, because you are talking about looking at the potential of trialling such a programme within planning regulations. Don't waste any more time. I know that there are concerns and doubts about this policy, but learn from other nations. Governments in Switzerland are taking action on this already, and are doing so successfully. Will you reach out to nations such as Switzerland to learn those lessons from them? The time has come to take considered steps in favour of our communities and those people who have elected us. You will get our support to take action. Some of our communities have been lost and others are on their knees. I urge you to take action. We don't need to consider the potential or conduct further pilots. Nefyn town council has already opened the door to you. Take that opportunity to work with them and other communities who are crying out for support.

Finally, I am pleased to see that you are talking about looking at land transaction tax, but again, there is no clear commitment. The experiences of other nations demonstrate clearly that increasing similar taxes on the purchase of second or third homes is an assistance and does ensure some control of the market. Do something about it. You can do this without even making any changes to legislation. We don't need any further delay. House prices are shooting up before our very eyes, and young people are having to leave their communities or live in second-class accommodation. Unless you take steps to take action now, then we will see more communities lost, and more people moving from their communities. We have no time to waste. Take action now. Thank you.