Demand already falling in Wales’ seaside towns ahead of Welsh Government crackdown on second homes
Demand is already falling in many of Wales’ seaside towns ahead of a crackdown on second homes by the Welsh Government, estate agents have said.
Seaside towns such as Prestatyn, Porthcawl and Abergele have seen falls of between -37% and -32% in buyer competition in the year to May, which are among the largest falls in the UK nations.
The figures compiled by Rightmove measured competition by comparing inquiry levels with the number of available properties in an area. A fall in buyer competition generally presages falling or stagnant house prices.
“As more choice becomes available in these seaside areas, we’re seeing some of the competition between buyers and renters begin to cool off,” Tim Bannister, of Rightmove, said.
The Welsh Government confirmed last month that they would carry on with plans for tax hikes on holiday lets that do not rent out their properties for more than half the year.
Following a consultation, from April local authorities will be able to set council tax premiums on second homes and long-term empty properties to 300% from April 2023.
The criteria for self-catering accommodation being liable for business rates instead of council tax will also change at the same time, from 70 to 182 days.
England’s Housing secretary Michael Gove has announced plans to let councils charge double council tax on second homes that are not used or let out for 70 days a year.
And yesterday, the English town of Whitby voted by 95% to stop people buying new properties as second homes there.
Seaside towns in England also saw a fall in demand, particularly in the south west where there have been tensions between residents and second home owners.
The largest fall in the UK nations was seen in Ilfracombe, Devon where buyer competition fell -64%.
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