Wales council tax hike on second homes sparks sell-offs and local debate

In Pembrokeshire, Wales, a significant increase in council tax for second homes has led to a dramatic rise in properties being listed for sale. The council tax premium was raised to 200% in April, resulting in a 255% increase in second homes on the market this July compared to the previous year. Despite this surge in listings, actual sales have plummeted, with only 4.5% of sales in the first half of 2024 being second homes, a stark decline from 21% a decade ago. Local estate agents have noted that many of the properties listed are priced too high for first-time buyers, and some owners are exploiting a loophole to avoid the increased tax by listing their homes at inflated prices. This situation has created a surplus of unsuitable properties for long-term residents, raising concerns about housing availability for locals. The local economy may also suffer as the number of second homeowners decreases. Business owners express worry that the reduction in second homes could negatively impact year-round trade, which has been bolstered by these homeowners. The sentiment is that second homeowners contribute significantly to the local economy by spending more time in the area compared to transient holiday visitors. John Mather, a local shop owner, has seen his council tax rise dramatically and believes the policy will not aid first-time buyers, as property values remain high. He argues that residents who live in Pembrokeshire year-round are more beneficial to the local economy than those who only visit occasionally.