Welsh think tank calls on government to clamp down on second homes

Abby Neve

A new report published at the National Eisteddfod calls on the Welsh Government to tighten rules on second homes.

The report shows that holiday lets claim around 2% of Wales’ housing – equivalent to all of Merthyr Tydfil.

Wendy Dearden, Senior Policy and Research Officer at the Bevan Foundation who lead the report, said:

“It cannot be right that thousands of people in Wales are homeless and living in B&Bs or hotels while up to 25,000 homes are being used for holiday accommodation.”

The report recommends that the Welsh Government should do more to minimise the loss of permanent homes to second homes and holiday lets.

The Bevan foundation also revealed that the number of homes being used for holiday lets would  be enough to rehouse every household in temporary accommodation at the end of September 2025 (6426), three times over.

Ruth Power, CEO at Shelter Cymru who also worked on the report, said:

“Every day we see first-hand the impact of the housing emergency on people and
communities across Wales, and nowhere has the long-term failure to address this been more clearly seen than in the growth of temporary accommodation across Wales.

“Through our work providing advice and advocacy to people in every part of Wales, we know the impact this is having, with lives stuck on hold, sometimes for years, while people wait for a permanent home.”

The findings reveal a ten percent increase in holiday lets using permanent homes over the last four years.

The recommendations include a national requirement for planning permission if a household wants to change use from a permanent home to holiday accommodation.

It also suggests moving away from the 182-day rule and using the purpose of the accommodation to establish how it should be taxed.

The report follows an announcement that the Welsh Government will be reviewing the controversial 182 day rule for holiday let businesses in Wales.

This rule says that a holiday let must be rented out for at least 182 days per year and be available to rent for 252 days in order to count as a business rather than a second home.

If a person meets these requirements, they pay cheaper business rates and no council tax.

The report also recommends incentivising holiday accommodation which does not use permanent homes such as yurts, barn conversions or shepherd huts as part of a wider tourism strategy.

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