Plan to limit second homes quashed after legal challenge

Cyngor Gwynedd introduced a rule to get planning permission for second homes and holiday lets

Measures to curb the number of second homes in a county have been quashed in a key legal ruling.

In September 2024, Cyngor Gwynedd became the first authority to introduce a requirement for planning permission to turn a residential property into a second home or holiday let - known as Article 4.

After legal action was launched – claiming it would devalue homes and make them harder to sell – a judge ruled Gwynedd's cabinet had not been given the full details before making their decision, and quashed Article 4.

At a hearing in Cardiff, the Honourable Mr Justice Eyre refused the council's request to suspend his initial order while it considered an appeal.

Cyngor Gwynedd confirmed it was preparing a written request to the Court of Appeal.

Legal challenges were brought by campaign group People of Gwynedd Against Article 4.

Shortly after the hearing on Thursday, Gwynedd resident Laura Alliss, who assisted with fundraising for the legal claim, said: "We're thrilled on behalf of the claimant and all the residents of Gwynedd.

"We feel justice has been served and the council has been held accountable for the unlawful manner in which the Article 4 direction was approved by the cabinet."

She said the council has now had three weeks in which to ask the Court of Appeal for permission to appeal.

But she added: "We hope they take time to reflect and decide not to waste further public funds on appealing.

"At the moment, Article 4 has gone, and we've won."

In October 2022, local authorities across Wales received more powers from the Welsh government to potentially control the number of second homes.

Welsh government amendments to planning regulations introduced three new classes of use - main home, second home and short-term holiday accommodation - meaning planning permission is required to convert a property into a second home.

Although owners of second homes in Gwynedd already pay a premium of 150% on top of their council tax bills, Article 4 was described as "a new tool to try to control the impact of second homes and holiday accommodation".

A public consultation received 3,902 responses.

In areas such as Aberdaron, where 30% of properties are second or holiday homes, the council voted in favour of these new measures.

Opposed to the plans, the People of Gwynedd Against Article 4 campaign group decided to launch a legal challenge.

They lost their original application for a judicial review, but on appeal were permitted to continue their challenge on the basis that the council's cabinet "had either misled councillors or misunderstood the measures" when setting out to change the planning rules.

A High Court ruling in September found that the officers' report and the accompanying documents meant councillors were "materially misled", according to the judge.

As a result, it could not be assumed the cabinet would have known that only material changes of use fell within the control of the planning system, rather than a "blanket measure" for all new holiday homes, he said.

Jeff Smith, chairman of Welsh language campaign group Cymdeithas yr Iaith described the decision as "disappointing".

He said that the council's own research "shows that the majority of the county's population cannot afford to compete in their own housing market, demonstrating the need for action".

"Tackling the excess of second homes is part of the solution to protecting the future of Welsh speaking communities in the language's strongholds," he added.

A spokesperson for the council said: "As a council, we have been determined to do everything in our power to ensure that the people of Gwynedd have access to suitable homes in their communities.

"To achieve this, we have taken proactive steps, including introducing the Article 4 Direction, to manage the significant number of homes that are being lost, as they are converted into second homes or short-term holiday lets.

"Research carried out before introducing the Article 4 Direction showed that 65% of Gwynedd households were being priced out of the housing market, with the problem even more acute in communities where there is a high proportion of holiday homes."

They added the council was "extremely disappointed with the judge's decision to reject our verbal request for permission to appeal the judgement", adding "we will now be pressing ahead with a written appeal to protect the council's decision to introduce Article 4 in Gwynedd".