Saturday, October 24, 2020
Real EstateUK

North Wales holiday spots generate £6.4m second home tax

North Wales holiday spots

The Gwynedd constituency raised £3.4 million per annum followed by Ynys Môn (Anglesey) which generated £3 million per annum

North Wales holiday spots have generated an “astounding” £6.4 million in residential land transaction tax.

Dwyfor Meirionnydd, which includes resorts like Abersoch, Barmouth, Pwllheli and Nefyn has the second highest take in the whole of Wales – behind leafy Cardiff South and Penarth (£3.7m).

The statistics, published by StatsWales in July, showed that the Gwynedd constituency pulled £3.4 million per annum in revenue.

It was closely followed by Ynys Môn (Anglesey) which raised £3 million per annum.

A Nefyn Town councillor said the figures were a damning indictment of the Welsh Government “inaction” over the housing market “crisis”.

Rhys Tudur, who has been a key figure in the fight to clamp down on the number of second homes being bought in parts of North Wales, said the figures were ‘astounding’.

He recently backed a motion calling for land tax to be devolved from Cardiff to the local authority in Gwynedd, which was passed unanimously.

Mr Tudur, who is also a solicitor, previously declared that the housing situation could have a detrimental effect on communities.

On second home properties, there is a 3% land tax on properties up to £180,000, he explained to North Wales Live.

He said, the tax rate then increases incrementally. A small two-bedroom house is on the market in Morfa Nefyn for the absurd amount of £240,000, and the land tax on this purchase price would be £9,300. A property bought for £3 million, which is not unheard of in Abersoch, would be subject to a land tax of £380,200.

From StatsWales.gov, Dwyfor Meironnydd has the second highest higher revenue for residential higher rates land transaction tax. Considering the population and the housing stock available, this is astounding, Mr Tudur said.

Nefyn Town Council has recently demanded more powers to tackle the amount of holiday homes bought in the local area for fears this could have a profound effect not only on the community, but also on heritage and the Welsh language.

In September, activists from the Pen Llyn area marched from Nefyn to Caernarfon to highlight the issue, and to urge Gwynedd Council and the Government to address it.

Mr Tudur described the Welsh Government’s lack of action against the issue as “heartbreaking”. He added: I am extremely disappointed with the Welsh Government’s inaction in dealing with our second homes crisis and to have put the matter on the backburner by commissioning a report.

In response however, the Welsh Government revealed that they were dedicated to creating affordable housing in Wales despite the challenges.

A spokesperson for the Government said: We recognise the challenges second and empty homes can present to the supply of affordable housing in some communities in Wales.

The spokesperson said, we are on target to deliver 20,000 new affordable homes this Senedd term, and Wales remains the only UK nation to have given local authorities powers to charge higher levels of council tax on both long-term empty and second homes.

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