Shadow Housing Minister Mark Isherwood MS has today stated that an evidenced review of second home ownership in Wales must involve the tourism sector and emphasised that Labour’s 20,000 ‘affordable’ homes target by the end of this Senedd term fails to meet social housing need.
Speaking in an Opposition Debate on Second Homes, Mr Isherwood, who has previously warned that Welsh Government legislation on second homes is costing North Wales millions, supported the section in the Labour amendment calling “on the Welsh Government to undertake an evidenced, thorough review of second home ownership in Wales and the measures that might be necessary to ensure the needs of individuals, communities and the economy, in particular the visitor economy”.
However, he stressed that the Welsh Conservatives amendment states this must include working “with the tourism sector and the Valuation Office Agency to establish an evidence base for policy regarding eligibility for self-catering accommodation to be recorded on the non-domestic rating list”.
He said:
“Past Welsh Government proposals to change the qualifying criteria for self-catering accommodation generated widespread concern amongst trade bodies, including the Wales Association of Self Catering Operators and Wales Tourism Alliance Members.
“The subsequent Non-Domestic Rating (Wales) Order 2010 stated that to qualify as self-catering accommodation, a dwelling must be available to let for at least 140 days in a 12-month period and actually let for at least 70 days.
“The Order was revised and strengthened in 2016. The qualification periods were retained, reflecting the public consultation responses.
“As the 2019 Equality, Local Government and Communities Committee Report on ‘Empty Properties’ states, “the criteria for self-catering accommodation strikes a balance,” where: Dwellings which meet the criteria may be recorded on the non-domestic rating list; For a property to be defined as self-catering accommodation, the owner must provide evidence to the independent Valuation Office Agency that the property meets the criteria; If a local authority believes a property should instead be listed for council tax and has evidence of this, it is obliged to share such information with the Agency .
“After the Welsh Government announced tighter business grant eligibility criteria for holiday let businesses in April, I was contacted by large numbers of concerned owners stating, for example: “They already know which businesses pay business rates and who pays council tax. Those on business rates should automatically have received the grant”.
“I thank Gwynedd, Anglesey and Conwy Councils for using their discretionary powers to ultimately give grants to each of these.
“Only Flintshire is still insisting that the Welsh Government requires Local Authorities to withhold the grant from legitimate businesses not meeting the revised criteria.
“The Housing Act (Wales) 2014 added discretionary powers for local authorities to apply Council Tax premiums of up to 100% to second homes.
“As I warned at the time, this would not generate additional supply for people who need affordable homes in their communities, and that “enabling Local Authorities to charge Second Home Owners additional Council Tax would risk unintended consequences”.
“As the sector has told me, this prompted many who had not known they were already eligible for small business rate relief to switch, and others to start letting out their homes to help with costs.
“Most of the Second homes purchased in holiday hotspots like Abersoch were already second homes, built as second homes over more than a Century and remaining so ever since.
“However, overdue action is needed to provide local affordable housing for local people, including purchasing suitable empty homes for social housing, developing homes with effective local market clauses attached and reintroducing a reformed right to buy for Council House tenants - with 100% sale receipts reinvested into new social housing, because increasing the number of households with their own affordable front door is good housing economics.”
Challenging the Labour amendment stating the “Welsh Government will meet its 20,000 affordable homes target by the end of this Senedd term”, he said:
“They fail to mention that although independent reports state that Wales needs 20,000 social homes over a Senedd term, their target includes social rent, intermediate rent, low cost home ownership and anything else they can squeeze in.
“Hence our amendment calling for clarification of what constitutes an affordable home.”