Cyngor Gwynedd has suffered a major legal setback in its battle to control second homes after a High Court judge ruled the council’s cabinet was “materially misled” by the presentation of the planning restrictions for approval.

Mr Justice Eyre (pictured) delivered his verdict on Wednesday, with Councillor Craig ab Iago, Gwynedd’s cabinet member for environment, saying the authority was “extremely disappointed” with the ruling and would appeal.

The court found that cabinet members were wrongly told Article 4 would create a “blanket measure” controlling all changes to holiday homes, when it only covers “material” changes of use, where, for example, a property switches from occasional personal use to regular commercial letting.

Significant victory

The ruling is a significant victory for the People of Gwynedd Against Article 4 campaign group, which raised £73,000 to challenge the council’s policy after initially losing their judicial review bid last November. The group argued the restrictions would devalue homes and make properties harder to sell.

Gwynedd became the first Welsh council to introduce Article 4 requirements in September 2024, forcing owners to seek planning permission before converting residential properties into second homes or holiday lets. The policy was designed to tackle a housing crisis in areas where 65% of local households were priced out of the market.

It already charges a 150% council tax premium on second homes, but the council argued that stronger measures were required in areas like Aberdaron, where 30% of properties are holiday or second homes.

The council received mixed responses, though, from the 3,902 people it consulted before implementing the new rules.

What happens next is in the hands of the council.”

The campaign group’s spokesman told the BBC they would now seek reimbursement of legal costs from Gwynedd, saying: “What happens next is in the hands of the council.

“We will have to wait and see whether the council will start the process from scratch and give notice of their intention to approve another Article 4 direction.

“This would, of course, be extremely disappointing for all residents; however, this time, the council, cabinet and residents of Gwynedd will know that it only applies to material changes of use and not all changes of use.”

The existing Article 4 measures will remain in force during the appeal process.