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To provide homes for Welsh people, English second home owners pay 250 Percent of the council tax

English second home owners will have to pay 250 per cent of their council tax to provide more homes to Welsh residents

  • Gwynedd Council will introduce a 150% increase on top of their full council tax
  • The increase will affect those who are not permanent residents
  • The extra £3 million to provide homes for local people in need
  • The changes will take effect in April 2023

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An area of ​​Wales widely known for its high tourist numbers will see a significant increase in council taxes for those who are not permanent residents.

Property owners face paying 250 percent of their council tax as the council introduces a 150 percent increase on top of their full council tax in a battle against second homes in one of the most beautiful natural areas in Britain.

This will be introduced to one of the most popular areas for holiday homes along the Welsh coast in County Gwynedd – including Snowdonia and the North Wales coast.

The increase has been approved by the council’s cabinet and will be presented to a full council meeting in December. This change could allow Gwynedd to become one of the first Welsh counties to take advantage of the new authorities announced by the Welsh Government to allow councils to raise council tax premiums on second homes.

Second Home Owners In Gwynedd Must Pay 250 Per Cent Of Their Council Tax To Counter The Holiday Rental In Local Areas

Second home owners in Gwynedd must pay 250 per cent of their council tax to counter the holiday rental in local areas

Wales Chancellor of the Exchequer and Local Government, Rebecca Evans, has previously announced that the change will come into effect on 1 April next year.

Discussions about the council tax premium across Wales have largely focused on the impact of holiday homes on the local housing economy as it has led to a price increase of more than what some local residents can afford.

In addition, councilors in Gwynedd increased the tax premium by double – and are using the extra £3 million to provide homes for local people who are struggling to find a roof over their heads.

It will affect second home owners in the county, including well-to-do seaside villagers such as Abersoch, where properties sell for more than £3m and are called Cheshire-on-Sea.

Property prices in Gwynedd

In Gwynedd the median house price in the county is £230,998 according to the Wales House Price Index of the Principality Building Society.

The household that residents in the county must purchase would be £51,333.

According to Stats Wales, in 2020 the average gross disposable household income for a resident of Gwynedd was £16,007 per annum, with many jobs in the county relying heavily on the tourism industry.

As of July this year, Gwynedd had 4,720 taxable second properties for the period 2022/3, which is a slight decrease from last year’s figure of 5,098, the Welsh Government reports.

The extra money is aimed at tackling rising homelessness in the county since the pandemic forced locals into BnBs.

It could have increased the premium to 300% thanks to new rules from the Welsh Government, but has decided not to do so yet. The situation is being monitored and assessed.

A group of homeowners called the move “morally indefensible.”

A council member said a member of her community had been on the social housing waiting list for three years and had to stay in the house where a family member had committed suicide in the living room.

Another said raising the bounty showed Welsh communities were ‘not for sale’.

Ioan Thomas, Plaid Cymru’s head of finance, described the decision as “very important”.

He said: ‘We believe that the basis of a healthy economy is one in which the people of Gwynedd have homes and contribute.’

He described the homelessness figures as “very alarming.”

He said. “We cannot ignore a situation where an estimated 1,400 individuals will have reported homeless by the end of this year – double the number that presented before Covid-19.

‘As a municipality, we are going to accommodate more than 600 people in temporary housing this year, where there were about 200 before Covid.’

Craig ab Iago, the cabinet minister for housing, said the intention was not to punish people and that second homes are not ‘monsters’.

It Will Affect Owners Of Second Homes In The County, Such As Those In The Coastal Town Of Abersoch

It Will Affect Owners Of Second Homes In The County, Such As Those In The Coastal Town Of Abersoch

It will affect owners of second homes in the county, such as those in the coastal town of Abersoch

But he said, “We are in a housing crisis. We’re talking about 200 people plus sleeping in B&Bs. There is a list of more than 3,000 people who have been waiting for social housing for more than three years.

June Jones, another Plaid Cymru councilor, said: “We have an opportunity to send the message that we are not for sale.” Her colleague Iwan Huws said, “If you’re lucky enough to own a second home in Gwynedd, you can at least play a bit more for the privilege.”

John Brynmor Hughes, whose neighborhood includes Abersoch’s second-home hotspot, said pubs and restaurants were closing as second-home owners sold. “The impact will be huge,” he said.

Anwen Davies claimed that plumbers, painters, joiners and gardeners would all have no money if second homes left.

Vacation Homes In The Local Housing Economy Have Led To Widespread Price Increases That Many Locals Cannot Afford

Vacation Homes In The Local Housing Economy Have Led To Widespread Price Increases That Many Locals Cannot Afford

Vacation homes in the local housing economy have led to widespread price increases that many locals cannot afford

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Jacky

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