Gwynedd holiday home owners to pay double council tax

Even the beach huts in Abersoch are hot property, with one selling for £153,000 in 2016

Owners of holiday homes and empty properties in Gwynedd will be charged double council tax from next month.

Councillors backed the increase in premium from the current 50% after being told it would raise an extra £3m a year for social housing.

More than one in ten houses in Gwynedd was now classed as a second home.

However, some councillors warned the move would lead to more people avoiding council tax by offering their property to let and classing it as a business.

Often described as a "loophole", current laws allow any second home available for commercial letting as self-catering accommodation for 140 or more days in a year, and actually let for at least 70 days, to qualify for non-domestic rates rather than council tax.

This, according to the Welsh Local Government Association (WLGA), also allows them to be eligible for Small Business Rate Relief, often resulting in them not paying any taxes at all.

However, Councillor Craig ab Iago, cabinet member for housing, said the council had to prioritise the 60% of local residents priced out of the market over those seeking a second home.

He added that a report for the Welsh Government published this week highlighted the need for local authorities to increase premiums to the maximum allowed before ministers would consider the case for tougher action over second homes.

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Councillor Sion Jones argued against the premium hike, saying he feared it "will lead to a loss of income in the long run" as more people used the loophole of business use.

Other councillors warned the increase would appear "anti-social towards tourism", with some preferring a modest rise in council tax for all residents, according to the Local Democracy Reporting Service.

However, Councillor Mair Rowlands argued that with Swansea Council already looking to implement a 100% premium, "Gwynedd certainly should", with so many locals being priced out in their own county.

"This isn't a matter of punishing second-home owners but to help fulfil a vision and a housing plan designed to tackle a source of great social imbalance," she added.