Gwynedd housing chief Cllr Craig ab Iago says the future of Welsh-speaking communities is at stake if something is not done to tackle the property crisis.

With Welsh Revenue Authority figures showing that almost 40 per cent of house sales in Gwynedd between March 2019 and April 2020 were charged at the higher rates of residential tax, which includes buy-to-let, second or holiday homes - the highest in Wales - Gwynedd Council housing data also shows that 60 per cent of residents are priced out of the local housing market.

And Gwynedd Council has previously expressed frustration at the ability of their owners to transfer from council tax to business tax rates – meaning they can potentially avoid paying anything to the council.

Despite implementing a 50 per cent tax premium on such properties, Gwynedd Council believes it is missing out on £2m a year in potential revenue as a result of the legal “loophole” with figures revealing last year that over 1,250 properties had “flipped” over the preceding five years.

The Welsh Government says it’s on target to deliver 20,000 additional affordable homes by the end of the current term, and say they’re aware of the pressure second homes place on the housing market.

But Cllr ab Iago described the current situation as “rubbing salt on the wound”.

Recent data shows an additional 811 houses a year are required to meet current local demand, but with 830 properties “lost” as second homes there’s a shortfall of 1,641 houses each year.

“It’s a crisis. The issue has become more pronounced over recent years,” he said.

“It doesn’t matter how many homes we build or how many empty ones we bring back into active use, until we sort out the root issue we’re putting a sticking plaster over a gaping wound.

He concluded: “There’s a clear will to do something here as we know that if we don’t, there won’t be Welsh-speaking communities.

“Our way of life will be displaced by rows of empty homes with the lights off during the winter. I don’t think anyone really wants that.”

Arfon MS Sian Gwenllian said: “Rhosneigr and Abersoch have been designated areas where you cannot build homes unless they are designated for regular use, so why not extend this to homes that already stand?

“It would sent out a clear message that we want to make it difficult for people to come into our communities and create problems of that nature.”

The Welsh Government said: “We are on target to deliver 20,000 additional affordable homes by the end of the current term of government.

“We recognise the challenges second homes – and empty homes – can present to the affordability and availability of housing in some communities in Wales.

“The law in Wales makes a clear distinction between properties used as second homes and those used as self-catering accommodation.

“Second homes are liable for council tax, including council tax premiums in those local authorities which have used their discretionary powers to apply premiums.

“Properties which meet the letting criteria for self-catering accommodation are listed for non-domestic rates and are treated in the same way as other businesses for local tax purposes.

“We have invited local authorities to provide information on any cases where they believe properties have been incorrectly listed.”