Holiday lets tax crackdown in Wales ‘is working’
New Stamp Duty figures show holiday and second homes sales have decreased in Wales under new taxes.
A crackdown on holiday homes in Wales is reducing the number of homes of this type being sold, new Stamp Duty figures show.
In some parts of the country, sales to holiday or second home buyers are down 12%, the Bangor Mail reports.
Stricter rules
Higher rates of Stamp Duty, or Land Transaction Tax as it is known in Wales, as well as Council Tax premiums and stricter planning rules, appear to be putting some property investors off.
Areas along the Pembrokeshire Coast have seen a fall in second or holiday let ownership from 50% to 38%. In Anglesey, the proportion of homes that are owned by local people has fallen 8% to 25%.
Percentage falls
The Welsh Revenue Authority said: “In the past few years, there have generally been falls in these percentages in northern and western areas of Wales.”
And Adam Al-Nuaimi, Head of Data Analysis at the WRA, said: “These trends are consistent with policies around second homes in Wales having some impact on purchasing behaviour.”
Financial ruin
Many tourist businesses in Wales are facing financial ruin after receiving backdated Council Tax demands for tens of thousands of pounds, it was revealed last month.
The beginning of new restrictions on second homes and holiday lets in Eryri National Park – formerly Snowdonia – prompted a furious response from locals in the region.
The Article 4 Direction, which came into force in June, removes permitted rights over the change of use of main homes to second homes or short-term holiday lets.
