Jayne Bryant MS, Cabinet Secretary for Housing and Local Government
The Welsh Government is committed to updating members on progress made in delivering our coordinated suite of radical interventions designed to support thriving local communities in which people can afford to live and work.
Looking first at the local level, our pilot in Dwyfor continues to monitor and evaluate the impact of our ambitious suite of measures. The independent evaluation, supported by the pilot partnership of Welsh Government, Cyngor Gwynedd, Adra, Grŵp Cynefin and Eryri National Park Authority, will publish its process evaluation by early 2026.
Through the pilot, we continue to trial interventions to increase the availability of affordable homes for the local community. Additional tailoring of our Homebuy offer is making it possible for more local people to buy a home, even in areas traditionally considered Dwyfor’s least affordable communities. It is heartening to see that since the scheme was launched, an unprecedented 33 households have been helped to buy a home in their communities. Cyngor Gwynedd has consistently matched Welsh Government investment using council tax premium funds raised on second homes and empty properties. This exemplifies just one of the many ways premium funds are being used by local authorities across Wales to help meet the needs of local communities.
I have also agreed to support the trial of a new ‘Purpose Built Homebuy’ delivery model through the pilot. This project will enable Cyngor Gwynedd to deliver 21 new affordable homes to own across four small sites, all in communities with affordability pressures and a high prevalence of second homes and short-term lets. A successful trial of this novel form of affordable new build delivery model may unlock its value for other parts of Wales.
We recognise that high concentrations of second homes, an over-supply of short-term holiday lets and a lack of housing affordability can affect our Welsh-speaking communities. In response to this challenge, Perthyn, one of the initiatives of the Welsh Language Community Housing Plan has worked closely with the Dwyfor based pilot. Perthyn has supported communities to respond to local housing needs and bolster other vital aspects of sustaining our communities. To date, it has provided eight community projects in the Dwyfor area with vital early intervention, support and funding. Currently, five of these groups are developing new housing projects.
As well as testing in the pilot area, many of the measures we are taking apply at a national level. By April 2026, we anticipate all but one local authority will apply a premium on second homes. Among these, five authorities currently charge an additional 150% on second homes. We encouraged local authorities to publish the amounts they raise through premiums, together with how these funds are spent. This has now become a consistent part of local authority practice. The information shows the higher tax paid by the owners of these properties is making an invaluable contribution to local efforts to tackle housing affordability and homelessness. The human impact of these local efforts was recently highlighted by BBC ‘Countryfile’, which showcased a young person in Gwynedd who had been supported to buy and renovate a former second home with premium derived grant funding.
Over two years on from our changes to the letting thresholds for short-term holiday lets to qualify for business rates, rather than council tax, the majority (60%) are meeting the requirement to be let for at least half the year. The primary aims of our changes to local taxes are to ensure property owners are making a fair contribution and to maximise the use of property, to the benefit of local communities. This includes benefits arising from increased occupancy for short-term letting, or the release of some properties for sale or rent as permanent homes for local people.
We value the role holiday lets play in supporting a vibrant and sustainable tourism offer in Wales. It is, however, vital we have a clear picture of our holiday accommodation offer in Wales and that we ensure a consistent standard between providers. We are making progress with our registration scheme. This will give us a better understanding of the type of properties and offering in Wales, and our proposed Bill for licensing holiday accommodation, initially for short term lets, will ensure all providers are offering the same basic standards to visitors.
I believe the steps we have taken are, and will continue to, help more people afford to live and work in their local area, with the profoundly positive effects this provides communities, families and individuals.