Affordable housing and the council tax premium

Letter to the Editor: On 1 December, Gwynedd Council will decide whether to increase the council tax premium on second homes. They may increase the premium from 100 per cent to 300 per cent — four times as much as for residents. They say these changes will “ensure people can find an affordable home in the place they have grown up”, they will bring down house prices and raise money to pay for more social housing. But, the council tax premium is a very blunt instrument – that will cause job losses and reduce household and business income while doing little to make housing more affordable. Instead, we need a focussed set of policies to improve the provision of social housing and discourage the use of specific types of property for second homes and holiday lets. Council policy should aim to increase the availability of affordable houses that meet the needs of local people.

The report used by the council to research this policy was supposed to “gather the opinions of communities and the industry on the potential positive and negative effects...” but this was not done and the council has not fully considered the positive effects of appropriate second homes and holiday lets. These were highlighted by the 2019, Scottish Government report that found increased spend and more jobs - for property managers and the property maintenance industry. It is disappointing that the 2020 report seems to ignore these positive impacts.

A further increase in the premium will have a huge personal and financial impact on the many people who invest in this beautiful place including local people who rent out second homes, people who have personal connections dating back for generations and groups that spend time walking and climbing in the mountains. They will all be penalised with huge council tax bills even though most of the houses owned by these groups are not suitable for the needs of local people.

I urge the council not to increase the premium. Instead, please take time to develop specific policies which will directly ensure that people can find an affordable home in the place they have grown up and to that end I offer my support and expertise.

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