New planning rules for second homes in Wales

Restrictions are also being placed on the eligibility for Business Rates instead of Residential Council Tax which will also come into effect in April 2023. At present, properties that are available to let for at least 140 days but actually let for 70 days pay Business Rates as opposed to Council Tax. This threshold will increase dramatically so that properties must be available to let for at least 252 days and then actually let for 182 days in any 12 month period to qualify for Business Rates.

In addition to these Council Tax changes, further measures are being brought in by the Welsh Assembly Government in an effort to reduce second homes. This will include the introduction of three new planning use classes:

1. A primary home.

2. Secondary home.

3. Short term holiday accommodation.

Powers are being expanded for each local authority in Wales to be able to make amendments to their planning system, which will require permission for change of use from one class to another. The Welsh Assembly Government are also looking to introduce further legislation allowing local authorities to limit the number of second homes as a matter of planning policy in their locality.

With the influx of people using properties for Airbnb’s further attempts are also being made to limit those properties available for such short term letting. There are plans to introduce a statutory licencing scheme for all visitor accommodation which will include short term holiday lets. This is similar to a hotel requiring a licence to operate, except in this instance short term lettings will require a similar licence. Again there are powers to give local authorities the discretion on issuing these licences.

The impact of the changes could mean that if you have a second home in Wales you may be required to change the planning use of that second home and then secondly if that property is used for short term holiday letting, then you would need to obtain a specific licence from the local authority. Full details are yet to be revealed at the time of writing as to what each local authority intends to put in action, but as more information is released further blogs on this topic will no doubt follow.