Councillors to consider calls for cut to 182-day rule for self-catering holiday lets to pay business rates
Bruce Sinclair, local democracy reporter
Councillors in a tourist hot-spot will consider an appeal to cut the 182-day rule for self-catering holiday lets.
Owners of holiday lets who don’t reach the 182-day threshold now have to pay council tax instead of business rates – and because they are classed as second homes there is often a council tax premium levied by the local authority.
A Notice of Motion will be heard at Pembrokeshire County Council’s (PCC) meeting on Thursday (12 October).
Second homes, and self-catering businesses not meeting the criteria, are currently paying a 100% council tax premium in the county, with the possibility of an increase to 300% due to be put to a public consultation later in the year.
The notice of motion submitted by councillor Huw Murphy calls for the current 182-day occupancy limit for self-catering holiday accommodation to be reduced to 140 days, claiming it would be, “fairer and more supportive of the tourism industry within the county”.
“Tourism is a key component of the Pembrokeshire economy since time immemorial, but more so on the coast and rural areas, and employ a significant number of people both full and part time and is key in supporting many small self-employed businesses,” Mr Murphy added.
“In the current economic crisis PCC need to use every tool at its disposal in supporting these businesses to survive and thrive and the reduction of the number of letting days to 140 required by self-catering accommodation providers to qualify for non-domestic rates would be welcomed by many involved in tourism in the county.”
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I would suggest all owners of holiday lets should pay a council tax premium on top of business rates regardless of occupancy. Something has to give because so many people have nowhere to live. Those owners who cannot pay should sell the homes to local people.
In addition I would suggest a clampdown on second home, the numbers should be severely restricted..
So where do you think those owners bought the house in the first place, off wait for it local people. Unbelievable statement !!!!
Clearly even those holiday home owners who reach the 182 day threshold are not employing people in all year round jobs, which is what is required. The lack of homes has a knock on effect for any companies considering locating in an area, as there will be consideration given to housing for workers, which, if substantial amounts are given over to servicing tourist demand, will be scarce. If those owning the holiday lets cannot reach the threshold clearly do not have a viable business and should perhaps sell up. Maybe legislation could be introduced that gives local authorities first refusal… Read more »
If these let’s are not viable for 182 then perhaps owners should let/rent on a permanent basis. The motion proposed is by a Tory who stands as an independent. Probably busy appeasing holiday home owners!
Any property built with planning permission for residential use should not be allowed on short term let without planning change of use. How can someone legally buy a residential flat/bungalow and then turn it into a business without change of use planning permission?Holiday let’s are not residential. Full stop.
Some people in Wales live in a complete fantasy World. Over 60% of families in Wales receive benefits one form or another, because of low quality and poorly paid employment. Over 10 % of Wales GDP is linked directly to tourism. Wales is already the one of the poorest countries in Europe, and here we have naive people trying to damage the second largest job opportunity providers in our nation. The largest job opportunity provider is local government and that produces a negative GDP. Until Welsh politicians can manage to attract new jobs and investment into our country, which by… Read more »
One of the most disastrous consequences of an overheated, overpriced tourist industry in Wales is the lack of homes for local people. Nothing works without a secure home.
Thank you Peter, this is an excellent comment. Increasing council tax for second home owners is not tackling the real issue in coastal communities – that of increasing the number of well paid local jobs. The average price for a house in Wales is £214,000. Unfortunately, unless people have a well paid job they will be unable to afford to purchase a home. Consequently, whatever is done to council tax, local people (unless in a well paid job) will not be able to afford to purchase a house in some seaside towns. This is the same story in many places… Read more »
Just remember folks that when your council tax goes up each year and you hear about your council struggling for money, it’s because holiday let owners pay NOTHING. They don’t pay council tax as they qualify for business rates but because the rateable value is low they don’t pay a penny! These are people who own more than one property and their investment in a holiday let is being subsidised by YOU! It’s laughable to see the obvious holiday let owners suggest local people don’t have good enough jobs to afford to buy property! That’s because holiday let owners have… Read more »