As the public prepares to flock to tourist attractions and holiday hotspots for the summer season, new data shows there are hundreds of homes newly registered as holiday lets in Gwynedd – despite concern over the impact of increased tourism on some communities nationally.

The coronavirus pandemic has led to a boom in “staycationing”, with prices for holiday accommodation rocketing in tourist hotspots, and many seeking to capitalise by converting their second homes into holiday lets.

New figures from the Government’s Valuation Office Agency, provided by property experts Altus Group, show there were 2,693 holiday lets in Gwynedd trading as businesses as of the end of May – 782 more than in mid-March 2020, before the onset of the coronavirus pandemic.

This means the area has seen one of the largest increases in holiday lets across England and Wales.

In Ceredigion, the trend too was upwards – but not to the same extent as in Gwynedd. The figures from the Valuation Office agency show there were 800 holiday lets in the county trading as businesses as of the end of May – 154 more than in mid-March 2020, before the onset of the coronavirus pandemic

Data for Powys is unavailable.

The figures cover second homes which are registered as commercial premises – meaning they must be made available for at least 140 days each year– but does not include other second homes used for private holiday lets.

Groups have highlighted the increased pressure of the uptick in tourism on some communities – particularly those in rural and coastal areas – such as increased rent and stretched local services

Across England and Wales, nearly 20,000 new homes have been newly registered as holiday lets over the course of the pandemic – there are now 83,342 nationally.

Records from the Welsh Government from January show there were 5,098 properties registered as second homes for council tax purposes in Gwynedd.

The same records show there were 895 properties registered as second homes for council tax purposes in Ceredigion.

In March, the Welsh Government gave the go ahead to local authorities to charge more in a bid to tackle the housing crisis.

The maximum level at which local authorities can set council tax premiums on second homes and long-term empty properties will be increased to 300 per cent, which will be effective from April 2023, the Welsh Government said.

While Ceredigion and Gwynedd councils already charge a 100 per cent premium, the ability to charge more will “enable councils to decide the level which is appropriate for their individual local circumstances,” the Welsh Government said.

“Councils will be able to set the premium at any level up to the maximum, and they will be able to apply different premiums to second homes and long-term empty dwellings,” it said.

Premiums are currently set at a maximum level of 100 per cent and were paid on more than 23,000 properties in Wales in 2022.

Local authorities opting to apply premiums have access to additional funding, and the Welsh Government has encouraged councils to use these resources to improve the supply of affordable housing.

As well as the new council tax premiums, the Welsh Government has set down new rules self-catering accommodation being liable for business rates instead of council.

Currently, properties that are available to let for at least 140 days, and that are actually let for at least 70 days, will pay rates rather than council tax.

The change will increase these thresholds to being available to let for at least 252 days and actually let for at least 182 days in any 12-month period.

“The change is intended to provide a clearer demonstration that the properties concerned are being let regularly as part of genuine holiday accommodation businesses making a substantial contribution to the local economy,” the Welsh Government said.

Both changes follow a consultation processes including businesses, the tourism industry and local communities.

Highly visited areas such as the South-West of England, Wales and Yorkshire and the Humber have seen the highest growth in holiday lets, with over 2,500 new holiday homes registered in Cornwall alone.

Altus Group says the national rise may be due to people ‘flipping’ their second homes – converting them into holiday lets to avoid paying council tax.

Generation Rent, a charity that campaigns for fair housing, said there were “countless” stories of tenants being evicted to make way for a holiday let.

The charity’s deputy director, Dan Wilson Craw, said: “The popularity of domestic holidays last year, combined with the lack of regulation and tax advantages, has fuelled the appetite for holiday homes and deprived renters of places to live.

“Taking homes out of the residential market prices out people who want to settle down in the place they grew up.

“That destroys communities and starves local businesses of workers.”

Secretary of state for levelling up Michael Gove said the Government wanted to encourage “responsible” short-term letting.

“We will not stand by and allow people in privileged positions to abuse the system by unfairly claiming tax relief and leaving local people counting the cost,” he said.

“The action we are taking will create a fairer system, ensuring that second homeowners are contributing their share to the local services they benefit from.”

Owners of holiday lets in England can claim 100 per cent business rates relief if the property has a rateable value of up to £12,000, and will also not have to pay council tax. They do not need to prove the property has actually been let out to claim the tax break.

In January the UK Government announced it was clamping down on the holiday let tax loophole, telling second homeowners they will have to prove their properties are rented out for a minimum of 70 days a year in order to access small business rates relief.

Files from Cambrian News data services