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Wales Online
2 days ago
- Business
- Wales Online
Holiday home crackdown having 'impact on purchasing behaviour' in Welsh hotspots
Our community members are treated to special offers, promotions and adverts from us and our partners. You can check out at any time. More info A holiday home crackdown in Wales is having an "impact on purchasing behaviour" say tax chiefs. The growth in second homes and holiday lets in some rural and coastal communities triggered a backlash over fears about the impact on local people. There were parts of Gwynedd where half of all homes were holiday properties with warnings about the negative consequences this was having on the Welsh language and culture. It has seen an effort to mitigate that trend in a bid to free up more homes for local people - although critics say the focus should be on building more properties. Measures include significant council tax premiums on second homes as well as stricter criteria for a property to be classed as a holiday let, which are exempt from council tax. Cyngor Gwynedd has also introduced a new Article 4 rule that requires planning permission for a residential property to change its use. Other areas are looking to follow their lead. While the measures have been welcomed by many, the tourism industry has warned of the impact on their sector and the Tories have said the focus should be on building new houses. Recent data in the Land Transaction Tax statistics - the Welsh version of stamp duty - is indicating that the measures are reducing the number of sales to second home and holiday let buyers Those properties sold to buy to let landlords, or as second homes, holiday homes or holiday lets, face a higher rate transaction cost. It is these higher rate sales that are falling as a proportion of total sales. Compared with the previous year (the year ending June 2024), the local authorities with the largest percentage changes were: Isle of Anglesey (decrease of 8 percentage points to 25%) Gwynedd (decrease of 6 percentage points to 26% ) Conwy (decrease of 3 percentage points to 21%) The corresponding changes with the previous year for the three National Parks were: Pembrokeshire Coast: 50% to 38%, a decrease of 12 percentage points Eryri: 36% to 29%, a decrease of 7 percentage points Bannau Brycheiniog: 19% to 21%, an increase of 1 percentage point Talking about the longer term trend, the latest Welsh Revenue Authority report said: "In the past few years, there have generally been falls in these percentages in northern and western areas of Wales. "The percentages for Gwynedd were fairly stable from 2018-19 to 2021-22 (around 37% to 39%). There was a marked fall the next year followed by a period of stability, before another notable decrease to 26% in the year ending June 2025. "The percentages for Anglesey declined from 36% in 2019-20 to 29% in 2022-23. While there was a notable increase to 34% in the year to June 2024, there followed a larger fall to 25% in the year to June 2025." Adam Al-Nuaimi, Head of Data Analysis in the WRA, said: "Comparing the year to June with the previous year, many areas of Wales saw decreases in their percentage of residential transactions which were higher rates, in particular the Isle of Anglesey and Gwynedd. "We're pleased to publish our second annual article about intent behind higher rates transactions and report on trends for the first time. The article tells us that many of the trends in higher rates transactions were due to changes in purchases of second homes, holiday homes or holiday lets. These trends are consistent with policies around second homes in Wales having some impact on purchasing behaviour. "Nationally in April to June, quarterly residential revenues were higher than the same time last year, but not as high as three years earlier. There are several reasons for the latest rise. There were increases in residential transactions and average property values over that time, and tax rates for higher rates transactions increased from December 2024."
North Wales Live
2 days ago
- Business
- North Wales Live
Holiday home crackdown having 'impact on purchasing behaviour' in Welsh hotspots
A holiday home crackdown in Wales is having an "impact on purchasing behaviour" say tax chiefs. The growth in second homes and holiday lets in some rural and coastal communities triggered a backlash over fears about the impact on local people. There were parts of Gwynedd where half of all homes were holiday properties with warnings about the negative consequences this was having on the Welsh language and culture. It has seen an effort to mitigate that trend in a bid to free up more homes for local people - although critics say the focus should be on building more properties. Measures include significant council tax premiums on second homes as well as stricter criteria for a property to be classed as a holiday let, which are exempt from council tax. Cyngor Gwynedd has also introduced a new Article 4 rule that requires planning permission for a residential property to change its use. Other areas are looking to follow their lead. While the measures have been welcomed by many, the tourism industry has warned of the impact on their sector and the Tories have said the focus should be on building new houses. Recent data in the Land Transaction Tax statistics - the Welsh version of stamp duty - is indicating that the measures are reducing the number of sales to second home and holiday let buyers Those properties sold to buy to let landlords, or as second homes, holiday homes or holiday lets, face a higher rate transaction cost. It is these higher rate sales that are falling as a proportion of total sales. Compared with the previous year (the year ending June 2024), the local authorities with the largest percentage changes were: Isle of Anglesey (decrease of 8 percentage points to 25%) Gwynedd (decrease of 6 percentage points to 26% ) Conwy (decrease of 3 percentage points to 21%) The corresponding changes with the previous year for the three National Parks were: Pembrokeshire Coast: 50% to 38%, a decrease of 12 percentage points Eryri: 36% to 29%, a decrease of 7 percentage points Bannau Brycheiniog: 19% to 21%, an increase of 1 percentage point Talking about the longer term trend, the latest Welsh Revenue Authority report said: "In the past few years, there have generally been falls in these percentages in northern and western areas of Wales. "The percentages for Gwynedd were fairly stable from 2018-19 to 2021-22 (around 37% to 39%). There was a marked fall the next year followed by a period of stability, before another notable decrease to 26% in the year ending June 2025. "The percentages for Anglesey declined from 36% in 2019-20 to 29% in 2022-23. While there was a notable increase to 34% in the year to June 2024, there followed a larger fall to 25% in the year to June 2025." Adam Al-Nuaimi, Head of Data Analysis in the WRA, said: "Comparing the year to June with the previous year, many areas of Wales saw decreases in their percentage of residential transactions which were higher rates, in particular the Isle of Anglesey and Gwynedd. "We're pleased to publish our second annual article about intent behind higher rates transactions and report on trends for the first time. The article tells us that many of the trends in higher rates transactions were due to changes in purchases of second homes, holiday homes or holiday lets. These trends are consistent with policies around second homes in Wales having some impact on purchasing behaviour. "Nationally in April to June, quarterly residential revenues were higher than the same time last year, but not as high as three years earlier. There are several reasons for the latest rise. There were increases in residential transactions and average property values over that time, and tax rates for higher rates transactions increased from December 2024."
Business News Wales
23-07-2025
- Business
- Business News Wales
Welsh Revenue Authority Reports Total of £2bn in Revenue for Wales
Ruth Glazzard and Rebecca Godfrey The Welsh Revenue Authority (WRA) has announced £372 million in tax revenue for Wales during the last financial year. Publishing its Annual Report and Accounts for 2024 to 2025, the WRA passed the £2 billion mark for the total amount of tax collected since the start of operations in 2018. Revenue from Land Transaction Tax (LTT) and Landfill Disposals Tax (LDT) is re-invested by Welsh Government in public services, like the NHS and schools, in communities across Wales. The report focuses on the WRA's seventh year of operations. Highlights include: Over 56,000 LTT returns processed efficiently Tax recovery exceeded £2 million for the first time on LTT More than £34 million in tax collected for LDT Achieved spend within 1% of budget The WRA also reported on its work supporting Welsh Government in preparing for the Visitor Accommodation (Register and Levy) Etc. (Wales) Bill, providing the Welsh Treasury with operational insight to help develop the legislation. The WRA continued to grow capability and skills to deliver in these new areas of responsibility and it said it has been involving stakeholders from the industry in its work. Rebecca Godfrey The report marks the leadership transition from founding Chief Executive Officer (CEO), Dyfed Alsop, to Interim CEO, Rebecca Godfrey. She said: 'We continued to make progress in embedding what we call, 'Our Approach', a Welsh way of doing tax. This proactive way of supporting people to get things right resulted in the vast majority of people filing and paying the right tax the first time. 'We also innovated in current taxes by mitigating tax at risk. This is about helping people to put things right when they get their taxes wrong. We recovered a record amount of tax through this work. 'Continuing to support Welsh Government with a focus on visitor levy and national registration has also been a highlight. I'm proud of the important role we can play in leading on new public services for Wales.' The report closes the final year of the WRA's Corporate Plan 2022 to 2025. In April, the WRA published its latest corporate plan. Ruth Glazzard, Chair of the WRA, said: 'As we report on this period and look ahead with our next corporate plan, this feels like a pivotal moment in our evolution. 'We've continued to make strong progress with our current responsibilities. We've also made preparations to deliver new services on behalf of Welsh Government. We look forward to the next chapter as we deliver more for Wales.'
Powys County Times
06-07-2025
- Business
- Powys County Times
Powys tourism chiefs to have say on controversial new tax
VISITOR accommodation providers in Powys are being encouraged to take part in a survey to help shape a new national registration service, ahead of proposals to bring in a new tourism tax for visitors to Wales this summer. The Welsh Revenue Authority is seeking views on what they want and need in preparation for a new Visitor Accommodation Bill due to be passed by the Senedd this summer. If passed into law, it will become a requirement for all visitor accommodation providers in Wales to be registered, whether a camping pitch, caravan, holiday lodge, Airbnb or hotel. The bill was agreed in the Senedd on Tuesday, and proposes that people staying overnight in Wales pay a small charge. The Welsh Government says the levy will help support the Welsh tourism industry, and that all the money raised will support local tourism activity and infrastructure. It will not be mandatory to introduce it though, with Pembrokeshire, Wrexham, Caerphilly and Rhondda Cynn Taff already deciding against implementing the tax. The new national register will be used by county councils, like Powys, if they choose to introduce a visitor tax or levy. 'We know there are many providers of tourism accommodation in Powys that will be affected if this new law is passed, as expected, by the Senedd,' said Councillor James Gibson-Watt, who is Powys County Council' s (PCC) cabinet member for a More Prosperous Powys. 'This is your chance to help shape how a national registration service would work, if you are one of them, so I would urge you to take it.' The bill has already been amended so under-18s will no longer have to pay the levy when staying in hostels or campsites. The rate for those staying in hostels and on campsite pitches (aged 18 and over) will be 75p per person per night (the lower rate) and the rate for people staying in all other accommodation types will be £1.30 per person per night. Finance secretary Mark Drakeford said earlier this week: 'We think it is fair visitors contribute towards local facilities, helping to fund infrastructure and services integral to their experience." The consultation on the new registration service closes on Friday, July 18. The 13-question survey can be found on the Welsh Government's website, at or through the ' have your say' section on the PCC website.
North Wales Live
03-07-2025
- Business
- North Wales Live
Holiday home sales down in hotspot counties of North Wales
The proportion of properties sold for holiday lets or second homes has fallen significantly in hotspot counties and national parks according to new figures from the Welsh Revenue Authority (WRA). The issue of second homes is felt most keenly in areas of Eryri and Pembrokeshire national parks, Gwynedd and Anglesey - with almost half the properties in places like Aberdyfi now second homes. It has seen a concerted effort to mitigate that trend in a bid to free up more homes for local people. Measures includes significant council tax premiums on second homes as well as stricter criteria for a property to be classed as a holiday let, which are exempt from council tax. Cyngor Gwynedd has also introduced a new Article 4 rule that requires planning permission for a residential property to change its use. While the measures have been welcomed by many, the tourism industry has warned of the impact on their sector and the Tories have said the focus should be on building new houses. Recent data is indicating that the measures are reducing the number of sales to second home and holiday let buyers. In January to March 2025, residential transactions across Wales were up 23% from the same quarter a year earlier - a total of 11,980. During the same period there was a lower 8% hike in higher rate residential sales to 2,630. Higher rate transactions include buy to let landlords, second home, holiday homes or holiday lets, as well as bridging (buying a new property while trying to sell an existing one). For areas like Anglesey, Gwynedd and Eryri these tend to be second home and holiday let sales. Sign up for the North Wales Live newsletter sent twice daily to your inbox By local authority, higher rates transactions as a percentage of all residential transactions (2024-25) varied from 13% in Monmouthshire to 31% in Merthyr Tydfil. In past years Gwynedd has often had the highest proportion of these sales with it around 37% to 39% - nearly four in every 10 homes sold. But over 2024-25 the rate has seen a notable decrease to 27% - this is down from 31% the previous year. When it comes to Eryri National Park it is down from 35% in 2023-24 to 28% over the past year and for Pembrokeshire Coast the rate has gone from 48% to 39%, Meanwhile Anglesey has declined from 34% in 2023-24 to 27% in 2024-25 - the biggest annual fall in the proportion of higher rate transactions of any county. The WRA said: 'In the past several years, there have generally been falls in these percentages in northern and western areas of Wales. 'The percentages for Gwynedd were fairly stable from 2018-19 to 2021-22 (around 37% to 39%). There was a marked fall the next year followed by a period of stability, before another notable decrease to 27% in 2024-25. 'The percentages for Anglesey declined from 36% in 2019-20 to 29% in 2022-23. While there was a notable increase to 34% the next year, there followed a larger fall to 27% in 2024-25.' They added: 'There are multiple factors influencing the large fall for Anglesey in the latest period (compared with a year earlier). One reason is the number of transactions in Anglesey is relatively low compared with nearby areas, therefore the percentages are generally more volatile from year to year. Much of this fall can also be explained by a relatively large increase in residential transactions at the main rates while higher rates transactions actually fell in the same period. 'Early data we hold on the intent behind higher rates transactions indicates the fall in higher rates transactions for Anglesey is mainly influenced by trends in purchases of second homes, holiday homes and holiday lets, and to a lesser degree, by purchases of buy to let properties.' Adam Al-Nuaimi, Head of Data Analysis in the WRA, said: 'The percentages of residential transactions at the higher rate are changing for several reasons, depending on the local authority. 'In some areas, the drop has been considerable and is partly due to fewer second home purchases. Other factors are also involved such as changes in purchase of buy-to-let properties and increases in main rates transactions exceeding those for higher rates. 'Nationally, in January to March quarterly residential revenues were higher than the same time last year, but not as high as three years earlier. There are several reasons for the latest rise. There were increases in residential transactions and average property values over that time, and tax rates for higher rates transactions increased from December 2024.'
