We will be supporting the first and final of these amendment regulations.
We also recognise the beneficial impact for most smaller businesses of the intervening proposed amendment regulation.
However, we also recognise that its broader proposals to increase Land Transaction Tax for Second Homes applies to a lot more than just holiday homes in a small number of high demand areas, and risks serious consequences for both housing provision more widely and legitimate self-catering businesses across Wales, already hit hard by Coronavirus restrictions.
This is detrimental to thousands of residents in the Private Rented Sector and contradicts the Welsh Government’s own budget-setting objectives.
This is not a public health measure and, therefore has no such justification on these grounds.
This also fails to recognise the financial impact, for households and businesses already having to contend with the rapidly changing impact of Coronavirus response restrictions.
Not only is this an unwelcome burden to those private landlords providing housing for those who cannot afford, or choose not to buy at such an uncertain time, it makes it harder for “second-step” owner-occupiers to move to a new home and, thus, free up stock for first time-buyers.
This amendment once again ignores the reality that most private landlords are decent landlords with few properties and reliant on them for their own living costs – who provide valuable housing for those who cannot buy, or do not need to, use up valuable social housing resources, which are scarce.
This would hamper the ability of good landlords to expand/diversify their portfolio to do just that.
Buy-to-Let property should not be treated the same as second homes as they provide, amongst others, for lower earners (who cannot buy) and local people.
Given the current economic situation, people will also be less able to buy and PRS housing is therefore now an even more valuable service.
As, some decent landlords in Flintshire told me last week “the restrictions imposed by Government are rapidly reducing the stock of decent, affordable rental properties.
We have learned a hard lesson this year, so we will begin the process of relocating our rental portfolio to England. It's a sad decision because we both come from a Welsh background”.
This amendment also raises questions about the impact on, for example, members of the clergy and Armed Forces personnel whose employment requires them to live elsewhere, but who seek to purchase homes in their home communities.
We will abstain accordingly.