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Bev Hooper, a 67-year-old from Yorkshire, developed a deep affection for Gwynedd, which led her to purchase a three-bedroom home on the Llŷn Peninsula alongside her sister three decades ago. At the time, their council tax was halved because they only occupied the property half of the year. However, since 2023, second homes in Gwynedd have attracted a steep council tax surcharge of 150%, creating financial strain for Bev and her family. According to Welsh government data, Gwynedd recorded the highest percentage of second homes in Wales in 2023-2024, making up 8.3% of all properties. Facing an estimated annual tax bill of £7,000, Bev expressed her heartbreak at the thought of selling the family cottage they had envisioned as a retirement retreat and a place to share with their children. She noted the growing tension in the community, saying, “The tourists don’t feel welcome, the second home owners don’t feel welcome.” With reduced income in retirement and rising expenses, Bev now questions the financial viability of keeping the property.
In Pembrokeshire, 23-year-old Rhodri Lewis is struggling to buy a home in his native county, where second homes accounted for 6.5% of all properties in 2023-24 according to official figures. Rhodri openly shared that homes were simply out of his financial reach, forcing him to move back in with his parents. As a Welsh speaker, he fears that the shortage of affordable housing not only affects locals but also threatens the language and cultural fabric. He explained that while tourism benefits the area during the summer months, the long periods when second homes remain vacant “just kills the community for the rest of the year.” Although planning to travel soon, Rhodri hopes to return with enough means to secure his first home.
Estate agent Carol Peet, with 25 years’ experience selling property in Pembrokeshire, highlighted what she views as two distinct housing markets: one serving locals and another catering to second homes. She suggested that preventing properties priced under the local average—around £250,000—from being sold as second homes could ensure affordability for young families. Carol remarked that many charming cottages popular with holidaymakers are “totally impractical” for full-time residency due to their poor winter conditions. Acknowledging the economic importance of second homes in Narberth, she nonetheless recognizes the pressing need for affordable housing that serves the resident population.
Across Wales, local councils have the authority to impose council tax premiums up to 300% on properties not occupied as a primary residence or let as holiday accommodation for a significant portion of the year. Gwynedd and Ceredigion currently apply a 150% premium, while Pembrokeshire charges 125%. Since 2023, self-catering properties must be available for at least 252 days and let out for at least 182 days annually to qualify for non-domestic rates, a measure aimed at distinguishing holiday lets from second homes. A Welsh tourism industry group has warned that these policies risk “wiping out tourism.” In comparison, England requires shorter availability and letting periods for self-catering properties to avoid higher tax rates. Gwynedd took an unprecedented step in September 2024 by requiring planning permission before a residential property can be converted into a second home or holiday let, a policy known as Article 4. However, these measures were overturned in a court ruling a year later. The Welsh government stated it is committed to addressing the second home issue, working with local councils to evaluate current policies through a pilot scheme in Dwyfor, Gwynedd, with the goal of determining the most effective way forward
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