Estate agent on fears over latest policy to stem second homes and Airbnbs in Wales
A massive change on second homes and Airbnbs could have "unintended consequences" warns a veteran estate agent. Under new Welsh Government legislation each local planning authority has the power to decide whether planning permission is required to change a home to a holiday property.
The introduction of an 'Article 4 Direction' takes away permitted development rights to make the change - meaning permission is required. This has already been done in Gwynedd and other planning authorities are considering following suit.
Campaigners who are concerned over the impact of excessive holiday homes welcome the move - saying it will help stop areas being swamped by holiday lets and second homes. It is one of a number of measures aimed at controlling the number of second homes.
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But estate agent Tim Goodwin, from Williams and Goodwin, said: "Whilst it is still early days to see the full effect Article 4 planning controls might have on the housing market there is a possibility that the proposal which is under consideration in Ynys Mon and has already been implemented in Gwynedd could have unintended consequences.
"Whilst it is understandable that housing needs to be made more readily available and affordable for locals this policy could not just create reduced investment in the housing market but also decrease property values, and its impact on property owners could in some cases be detrimental."
He added: "As we move into a post pandemic housing climate a more stable market is being experienced and property prices have already begun to level off resulting in an increased supply of affordable housing for local residents and in my opinion effective housing policies need to take a balanced approach considering long term trends, and it is a possibility that the Article 4 policy could have an effect on property values due to a restricted use as defined by the Royal Institutes of Chartered Surveyors.
"This means that two identical properties in a terrace of the same size and style could have different values as if one house has the established use of a holiday let it could be sold as a main residence or for a holiday let, but if the adjoining property does not have the established use, potential purchasers looking to buy a second home or holiday let business could be deterred from it.
"This reduced demand could result in the unintended consequence that the person being penalised is the local homeowner who does not have the established holiday use resulting a greater time period to sell the property or even affecting the property's value."
He said there could be more effective alternatives to the policy.
He added: "The availability of affordable accommodation for local residents might therefore be better achieved by increasing the supply of accommodation available as well as young people having greater access to well paid jobs, that can help encourage them to remain in the communities in which they have been brought up in. it is critical to create a balance between integrated economic growth, cultural heritage and thoughtful policies and development planning to ensure thriving and vibrant communities."
In a Justification Report presented by Cyngor Gwynedd before last year’s consultation process, research was presented showing that 65.5% of the county’s population cannot afford to live locally and that measures introduced so far – such as increasing premium council tax on second homes – were not enough on their own.
Cllr Dafydd Meurig, cabinet member for the environment, said local, affordable housing locally was key to securing the future of communities. He added: “Unfortunately, research shows that a significant proportion of people in Gwynedd are priced out of the housing market and that is more evident in communities with higher numbers of holiday homes.
“It is therefore inevitable that the significant number of houses being used as second homes and short-term holiday accommodation is affecting the ability of the people of Gwynedd to access homes in their communities. By introducing an Article 4 Direction, the Council will have a new tool to try to control the impact of second homes and holiday accommodation.”
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