The Welsh First Minister leading a crackdown on second homes has a holiday “lodge” in Pembrokeshire which will be exempt from his government’s new higher tax charges.
Mark Drakeford has admitted he owns a holiday “cottage” just as the Welsh Government launched a crackdown on second homes and holiday lettings.
At a press conference this week, Mr Drakeford and Plaid’ Cymru’s Adam Price pledged to help first-time buyers by reducing the number of second home owners in Wales.
Asked about a cottage he and his family own in Pembrokeshire, however, Mr Drakeford said the property “doesn’t count as a second home” as it could not be lived in all year round, although he admitted it was used second home in the past.
“Most people will be familiar by listening to this if you have a caravan you can hire it between March and October but not the rest of the year,” he said.
“I have had, or our family has had, I think it will be 27 years this year, a cottage in Pembrokeshire which is occupied on the same terms. You can borrow it for part of the year, but not for the rest of the year.
Mr Price, who owns two houses – one in Cardiff and one in his constituency – said he was looking forward to “streamlining” his life after leaving politics. “Of course I’ve stayed in hotels, B&Bs and holiday accommodation in Wales and other parts of the world,” he said. “It’s not about saying this is wrong, it’s about striking a balance.”
The plans announced on Monday include changes to planning regulations by the end of the summer, a statutory licensing scheme for all holiday lettings and plans for local authorities to increase tax rates on second home land deals and holiday lettings.
Mr Drakeford said: “Tourism is vital to our economy, but having too many holiday properties and second homes that are empty for most of the year does not contribute to healthy local communities and pushes people out of the local housing market.
“There is no single, simple solution to these problems. Any action we take must be fair. We do not want to create unintended consequences that could destabilize the wider housing market or make it harder for people to rent or buy.”
However, Mr Drakeford said properties such as his “shack” were exempt from council tax premiums. In March, the Welsh Government announced plans to raise the maximum level at which local authorities can set council tax premiums for second homes and long-term empty properties from 100% to 300% in April 2023.
Premiums have been paid on 23,000 properties this year, according to the government’s website. Under the current rules, properties available to let for at least 140 days – and actually let for at least 70 – pay rates rather than council tax.
This threshold will increase in April next year, meaning properties will need to be available to let for at least 252 days and effectively for at least 182 days a year. Mr Drakeford said the crackdown on second homes was not intended to discourage holiday rentals or tourism.
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