THE number of second homes for sale in Pembrokeshire has surged dramatically following a substantial council tax increase. New figures reveal that in July, there were 135 second homes listed for sale, a significant rise from just 38 in the same month last year, marking an increase of 255%.
This spike comes after Pembrokeshire County Council introduced a 200% council tax premium in April, effectively tripling the bills for second home owners. In response, many property owners have opted to put their homes on the market, with the number of listed second homes in the county rising by 97 in just 12 months. As of 1 July, the total number of second homes registered in the area has dropped slightly from 3,364 in 2023 to 3,271.
The Welsh Government’s recent policy changes have granted local authorities the power to charge up to 300% in council tax premiums on second homes, aiming to make housing more affordable for local residents. These measures have been particularly controversial in coastal and picturesque areas, where holiday homes are prevalent.
Neil Evans, owner of West Wales Properties estate agents, highlighted the significant impact of the council tax premium, especially in towns like St Davids and Newport. “We’re seeing properties come on the market at such a volume that I’ve never seen in 30 years,” he said. Evans noted that second home owners could easily relocate across the Severn Bridge, where such premiums do not apply, adding that the policy has also had a detrimental effect on the local holiday trade.
The issue of second homes has long been contentious in Wales, particularly in areas like Gwynedd, where the local council has been accused of “playing Russian roulette” by imposing a 250% council tax premium on second homes. Earlier this year, Gwynedd went a step further, requiring new second homes to obtain planning consent—a measure that will come into effect on 1 September.
Cyngor Gwynedd has justified these policies by citing the “huge housing crisis” in the area, with many young people supporting the move as they find themselves priced out of the housing market by wealthy second home owners. Other Welsh councils, including Anglesey and Conwy, have also implemented council tax premiums, albeit at lower rates of 100%. Ceredigion is set to increase its premium from 100% to 150% in 2025, while Carmarthenshire currently charges a 50% premium.
Campaigners like Hedd Ladd Lewis, who advocates for housing market reform, welcomed the increase in second homes on the market as a positive sign but remained sceptical about whether local residents could afford these properties. “What we have is an open market and local people who earn wages – on average around £28,000 a year – will not be able to compete [for houses],” he said. Living in Newport, where 30% of properties are second homes or holiday lets, Lewis called for a legal act to ensure that the local community has the right to buy homes.
However, Aled Thomas, a local Conservative councillor, opposed the council tax premium, warning that it could harm the local economy. “Tourism is one of the things that brings money into the economy, but people are going out of business because of these policies,” he said. Thomas argued that the solution lies in building more homes, criticising the local council for constructing only 20 to 30 houses over the past 30 years. “That is disgraceful,” he added.
