Wales...Second Home Tax & Airbnb Welcomed as home licensing scheme to be rolled out

Wonderful news and I hope it gets even tougher for second homeowners. They also need to clamp down on camper vans illegally parking overnight and make all of Wales a paid overnight parking zone, so if you don't pay you to get fined or clamped.

Sounds harsh but living in Wales means you can't afford to buy a property, most new ones built are too expensive or flats buy the sea for OAPS.

On top of that, you can't park anywhere around Snowdon, and other areas and you have to queue to get to the summit, it can't go on,. something needs to be done.

Wales will today announce the roll-out of a licensing scheme for holiday lets amid explosive growth in second homes and Airbnbs. Tourism chiefs suspect the scheme may also pave the way for the introduction of a tourism tax in the country.

The Welsh Government will today reveal additional planning and taxation measures aimed at tackling the second homes crisis in Wales. These will “ensure everyone is able to afford to live in their local community, whether that’s buying or renting a home”, said the administration.

Details will be released at a joint press conference fronted by First Minister Mark Drakeford and Plaid Cymru leader Adam Price. A commitment to clamp down on second homes as part of the three-year deal agreed between Cardiff and Plaid to work together in the Senedd.

The Wales Tourism Alliance (WTA) has previously said it will back a registration scheme as it is keen to weed out unregulated operators who typically spend less on regulatory compliance and contribute less to local economies. As many legitimate operators rely on Airbnb for bookings, industry concern is focused on second homeowners who “game the system” by offering occasional bookings to avoid tougher tax penalties.

But the WTA is reticent about licensing amid concerns it will be bureaucratic and expensive to run. The industry also believes it will preempt the introduction of a Tourism Tax as a register of accommodation providers will be needed for the levy.

The growth of second homes has led to people being priced out of home ownership or rentals in their communities. First Minister Mark Drakeford and Plaid leader Adam Price pledged to tackle the issue as part of their cooperation agreement for the government (Image: Bronwen Weatherby/PA Wire)

The Welsh Government has commissioned three research projects into a possible Tourism Tax and a public consultation is planned this autumn. If green-lighted, it will allow local authorities to introduce a levy on visitors - most commonly for nights spent in hotels, B&Bs, or self-catered holiday lets.

A licensing scheme for holiday lets was introduced in Scotland earlier this year and last week Westminster said it is considering a registration “kitemark” scheme in England. This is part of a wider review into the impact of short-term lets on local housing supplies in areas swamped by tourists.

Housing minister Stuart Andrew said: “Holiday let sites like Airbnb have helped boost tourism across the country but we need to make sure this doesn’t drive residents out of their communities. We are already taking action to tackle the issue of second and empty homes in some areas by empowering councils to charge up to double the rate of council tax.

“This review will give us a better understanding of how short-term let's are affecting housing supply locally to make sure the tourism sector works for both residents and visitors alike.”

England’s scheme may involve physical checks of premises to ensure compliance with rules on health and safety, noise, and anti-social behavior. Costs have yet to be discussed but Scottish councils have warned of “significant” charges for holiday let owners. In the Scottish Highlands alone, around 10,000 premises may need site visits, monitoring, and enforcement to ensure compliance.

In recent years the market for short-term holiday lets has boomed, especially since the launch of Airbnb in the UK in 2009. Between April 2016 and May 2019, the number of active Airbnb listings tripled, from 76,000 to more than 225,000. As of January 2020, there were 257,000 listings – another increase of 14%.

Wales has already introduced a 100% council tax premium for short-term lets that fail to meet occupancy targets. From next April the target will rise to 182 days or half the year.

At the same time, councils will also have the option to impose 300% premiums, effectively quadrupling council tax payments for those who fail to meet the new letting threshold. One tourism chief has likened the changes to a “Stalinist” purge of holiday lets in Wales, with one survey estimating 84% will quit.

From...https://www.dailypost.co.uk/news/north-wales-news/welsh-tourism-tax-step-closer-24386917