The second homes and holiday lets market looks set for greater regulation and scrutiny in Wales following proposals revealed in the country’s parliament yesterday.

Buyers of second homes already face higher stamp duty costs in Wales, but now the country’s government has set its sights on owners making a fairer contribution to the communities where they buy.

It also wants to set up a registration scheme for all holiday accommodation and has promised to engage with stakeholders on how it will work, including both registration and inspection.

In addition, a consultation on changes to local taxes to manage the impact of second homes and self-catered accommodation will start during the summer.

This will run in tandem with a pilot area set to trial and evaluate these new measures before wider rollout.

Second homes

Last year, Wales became the only country in the UK to give local authorities the power to charge 100% council tax increase on second homes.

The proposals were set out in the Senedd by Minister for Climate Change Julie James (pictured).

She says continuing rises in house prices mean people, especially younger generation renters, can no longer afford to live in the communities they have grown up in.

“The urgency and gravity of this situation calls for further intervention, which means real and ambitious actions are delivered at pace, to inject fairness back into the housing system,” she said.

Wales already operates one of the UK’s strictest regulation and monitoring schemes for both landlords and letting agents, Rent Smart Wales.

Read the announcement in full.