Judge throws out legal challenge to Welsh holiday homes rules

An application for a judicial review of Gwynedd Council’s use of an Article 4 Direction to curb the area’s growth in second homes and short-term holiday lets has been dismissed by a High Court judge.

As has been reported in The Neg, there have been a growing number of councils in Wales wanting to force out second-home owners and holiday lets, but it is not universally popular, especially with those connected to the tourist industry.

And Gwynedd County is home to holiday hot spot Snowdonia National Park and has the highest percentage of second homes and short-term holiday accommodation in the Principality.

Affordable

The council said the rule change was needed “as part of efforts to ensure that there is an affordable provision of houses that meet the needs of local communities”.

A local campaign group, Say No to Article 4, however, has argued that the new direction would reduce house prices, ‘plunge homeowners into negative equity’, and make it difficult for homeowners to sell their properties.

Harm tourism

It also warned the move would harm local tourism, lead to revenue loss for those locals who run short-term holiday lets and discriminate against older community members who would find the value of their homes reduced if they wanted to release some equity.

The group issued proceedings against Gwynedd in 2023, having used crowdfunding to raise around £64,000.

The judge overruled the group’s concerns, saying the council’s decision had been taken after a “robust and thorough exercise” and noted that the council’s reports “referred both to the exceptional circumstances behind the making of the direction and the robust nature of (the) evidence which justified it”.

Say No to Article 4 is now taking legal advice on whether they should appeal.