What is the problem with second homes in Wales?

Second homes have been the subject of controversy for decades. The issue has become more evident recently in the wake of Brexit, Covid and campaigning by local people and pressure groups.

A high number of second homes in a community can lead to a shortage of housing for local people and an increase in house prices that disadvantages local people. The displacement of the local community, particularly by non-permanent residents, can affect local services and resources and even lead to school closures. Two examples of areas in Gwynedd with a high percentage of second homes and where the local primary school has closed are Aberdyfi (43.31% of houses are second homes) and Abersoch (46.36%).

These two villages are an example of another impact associated with second homes, namely a fall in the percentage of Welsh speakers. The percentage of Welsh speakers is low in Aberdyfi and Abersoch, compared to the percentage of speakers across the county. According to the 2011 Census 65.4% of the people of Gwynedd speak Welsh, but only 35.5% of the residents of Aberdyfi and 43.5% of Abersoch residents speak the language. Gwynedd is the county with the highest percentage of second homes and holiday accommodation in Wales (10.76%). Anglesey is third (8.26%) and Ceredigion is fourth (5.91%) on the list. The 2011 Census data showed that the percentage of Welsh speakers had fallen in these counties, which are considered strongholds of the Welsh language.

Dr Simon Brooks states that second homes must be tackled on the basis of social justice and for the benefit of the Welsh language in Welsh-speaking communities where there is a significant number of such houses.

How could the situation be improved?

During 2021-2022 the Welsh Government presented several proposals to address the impacts of high numbers of second homes and holiday accommodation. These include increasing taxes so that second home owners have to pay more tax when buying the property in the first place and when paying council tax on it afterwards. There will also be an increase in the periods that holiday accommodation must be available and let to ensure that the owners of the property make a fair contribution to the local economy. Changes to the planning system include the introduction of new use classes for main homes, secondary homes and short-term lets, and giving Local Authorities the power to compel owners to apply for planning permission before a main home can be converted into a second home or holiday accommodation.

The Government has also proposed a scheme to support Welsh-speaking communities with a high number of second homes. The Welsh Language Communities Housing Plan discusses the economy, work and the need for local and community initiatives and solutions. It talks about collaboration, evidence gathering and analysis and tailored policy development. One of the aims of the scheme is to establish a Commission to safeguard the future of Welsh as a community language.

The Government held consultations on all of the above proposals and you can read about them in full by clicking on the links in the ‘Further reading’ section below.

The Local Government and Housing Committee has published a report on the matter, Second Homes, following an investigation to which the Commissioner contributed. It makes 15 recommendations for the Government.

What is the Welsh Language Commissioner’s opinion?

The Commissioner supports many of the Government’s proposals, including the changes to the planning and taxation systems.

The effects of the changes will need to be monitored closely, both by Government and Local Authorities. It will be necessary to ensure that Local Authorities are given detailed instructions on how to implement Government policies, and perhaps additional resources to undertake evidence gathering, monitoring and enforcement action if necessary. The new Commission will also have to have sufficient resources and expertise.

The Commissioner, among others, has called on the Government to use up-to-date data to keep an eye on the sustainability of communities and to act in a timely and effective manner to protect the sustainability of the Welsh language. (The data could include the number of children in the local schools, the language medium of schools, the number of permanent residents in the community, the number of second homes and house-buying patterns, employability, and access to services and public transport.)

Housing affordability and the competitiveness of local people in the housing market will also have to be addressed.

The Commissioner responded to each of the consultations undertaken by the Government in this area and the responses can be read by clicking on the links in the ‘Further reading’ section below.

What next?

The Commissioner has drawn the Government’s attention to the need to monitor closely any impacts its proposals may have. One example is the danger that, in setting a threshold for managing second homes, restrictions in one area could encourage an increase in the number of second homes in other areas nearby. It is important, therefore, that the Government is flexible, responsive to changes and plans continuously on the basis of assumptions for the future. The Commissioner has also emphasised that, while there is potential for the Government’s proposals to have a positive impact on Welsh-speaking communities, more work is needed to help local people access the housing market. The Commissioner’s work will continue, keeping an eye on this complex area and supporting Welsh-speaking communities.

Further reading

Reports

Anglesey and Gwynedd Joint Planning Policy Service (2020), Managing the use of dwellings as holiday homes

Simon Brooks (2021), Second homes: Developing new policies in Wales

Dyfan Powel, et al. (2021), Research to Develop an Evidence Base on Second Homes

Local Government and Housing Committee (2022), Second Homes

Holiday homes are ‘hollowing out’ coastal areas, says MP | Housing | The Guardian

‘Everyone wants a piece of Cornwall’: locals up in arms over second homes | Housing | The Guardian

Government consultations

Commissioner’s responses

Local Government and Housing Committee inquiry into second homes

Consultation display (senedd.wales)

Commissioner’s response to the inquiry

Second homes (welshlanguagecommissioner.wales)