Second home tax rules in Tenby have sparked concerns among locals, with businesses feeling the impact of a tough summer season. Matthew Ronowitz, a restaurant owner in Tenby, expressed worries over the potential decline in trade unless the Pembrokeshire county council reconsiders the 200% second home tax premium imposed earlier this year. The council’s decision to raise the premium follows the Welsh Government’s allowance for local authorities to set their own premiums, leading to a significant number of second home owners selling up in Tenby.
The prevalence of second homes and holiday lets in Tenby has long been a topic of discussion, with around a quarter of the town’s housing stock falling under this category. Furthermore, holiday let owners must now adhere to stricter regulations to qualify for business rates instead of council tax, making it financially challenging for some property owners. Carol Peett of West Wales Property Finders highlighted the diverse range of individuals impacted by the tax, including pensioners, farmers, and inheritance recipients who rely on the additional income.
Local business owners, such as Jeremy Cargill of Southcliff Guest House, lamented the quieter summer in Tenby, attributing the change in clientele to the increasing tax burdens on second home owners. The implications of the second home tax extend beyond individual property owners, affecting the overall economy of Tenby, which heavily relies on tourism.
Acknowledging the need for balancing housing market accessibility for locals and maintaining the town’s economic vibrancy, stakeholders have called for a reassessment of the current tax regulations. The Pembrokeshire council has indicated a willingness to review the second home tax premium, with a decision expected at the upcoming October meeting.
As Tenby grapples with the repercussions of the second home tax, the community remains hopeful for a resolution that preserves the town’s unique charm while supporting local businesses and residents. The delicate balance between promoting tourism and ensuring housing affordability is at the forefront of discussions surrounding the future of Tenby’s property market.