Second homes flood the market in Pembrokeshire after council’s tax hike
The number of second homes for sale in Pembrokeshire has tripled since the introduction of a 200% council tax premium, latest figures show:
- 135 second homes for sale in July
- 255% increase from previous year
- Impact seen in sought-after seaside areas
According to estate agents, the council tax change has had a significant impact, with properties flooding the market, particularly in popular coastal locations. This surge in second homes on the market follows complaints about the increase in empty and second homes pushing locals out of their communities and contributing to over-tourism.
Most councils in Wales have implemented higher council tax rates for owners of empty or second homes to address these issues. Pembrokeshire went a step further by introducing a 200% council tax premium in April, resulting in a threefold increase in bills. Owners can avoid the premium by listing their homes for sale for up to a year.
As of July 1st, the number of second homes listed for sale in Pembrokeshire had risen by 97 over the past year, amounting to a 255% surge. Council data indicates a decrease in the total number of registered second homes, from 3,364 in 2023 to 3,271 presently. Additionally, the count of self-catering holiday units has dropped from 2,621 to 2,425.
Neil Evans from West Wales Properties estate agents expressed astonishment at the volume of properties hitting the market. He highlighted a negative impact on the tourism industry, as second home owners could opt for properties across the Severn Bridge without facing similar tax burdens. Local Conservative councillor Aled Thomas criticized the premium, attributing business closures to the policy’s repercussions and advocating for increased housing construction.
Despite the trends in Pembrokeshire, a Welsh Government council tax report forecasts reductions in second homes in areas like Gwynedd, Pembrokeshire, Anglesey, and notably, Cardiff. The Welsh Government has made changes to planning, taxation, and introduced plans for a new licensing scheme for holiday lets in Wales in response to mounting concerns regarding the issue.