Editor
As expected, a majority of Gwynedd councillors voted for the 100 per cent council tax (CT) premium on what they refer to as second-homes, even though their public consultation survey demonstrated that 55 per cent of respondents supported second homes. Do these councillors understand the difference between a second-home and a furnished holiday let - the majority of which are owned by local residents?
Cllr Mair Rowlands came up with an astute observation: “This isn’t a matter of punishing second home owners.” Which bit of fining property owners £2,000 per annum is not a punishment?
Cllr Gareth Thomas added:“While second home owners undoubtedly spend in the area, it’s certainly not to the same degree as a family living in the property all year round.”
What complete rubbish! Onlythis week the chairman of the Barmouth Publicity Association provided data that each FHL contributes £42,000 a year to the local economy. I also know a second-home owning neighbour who calculated he has spent about £500,000 in the local economy over the past 10 years. Data shows the total annual spend contributed by second-property owners across Gwynedd is £144 million! What will now happen to the 6,000second properties in Gwynedd? Well, 2,000 FHLs have already changed to business rates and I suspect a further 1,500 or so will in the coming years. Many of the remaining 2,500 will sell up and some of the new owners will register their properties as primary residences, paying standard CT.A number will also rent them out for 70 days a year to claim business rates and pay zero CT.
This will inevitably result in a massive loss of income for the council. If we assume that prior to the introduction of a CT premium the 6,000 second-homes each paid an average of £2Kannually, providing a CT income of £12m. Now consider a scenario where the original 6,000 second homes have changed to: 3,500FHLs paying business rates; 500 holiday homes paying business rates; 1,000 homes under new ownership paying standard CT; and 1,000 of the original second homes now pay 100 per cent CT premium. The annual CT income will then be £6m, a £6m reduction on the original £12m revenue.
This illustrates the inevitable CT revenue loss to Gwynedd of this mad-hat scheme. On top of this can also be added the potential financial impact on the tourism industry.
• What an excellent letter from Charlie Evans (‘Policy won’t solve local homes crisis’, Letters, 3 March). Mr Evans hit the nail on the head in stating that the answer to affordable homes is to make them affordable!
He concludes that this is only achievable by attracting new businesses into the county to raise the earning power of local residents.
He rightly assesses that it will not be achieved by penalising the owners of second homes. I fear he is correct that the council’s policy towards second property owners is all to do with politics and nothing to do with improving the lives of the people. Well, the people of Gwynedd can do something about this. Vote them out at the next local elections and vote in a younger generation such as Mr Evans.
John Rees Moss Bala
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