SECOND home owners in Pembrokeshire are reacting to the proposed changes by Pembrokeshire County Council to introduce an increase to their council tax contribution, according to a local holiday home firm.
Currently, holiday home owners who use their properties for their own use will be hit with a 50% increase to their council tax charges. People who have a holiday home in Pembrokeshire already pay a 100% contribution to the council for services.
FBM Holidays, part of the FBM group, based in Tenby and who work with holiday home owners across the county, have noticed an increase in the amount of applications for second home owners seeking advice on how they can circumvent these charges by opening up their available weeks for rental.
The recently announced 50% rise in council tax, which is due to come into force on April 1, is primarily aimed at people who have a second home for their own personal use and do not holiday let that property. As an owner, if a holiday property is available for 140 days and is let for a minimum of 70 days, they would qualify for business rates and therefore pay no council tax at all.
A spokesperson for FBM Holidays said: “Since the decision by the council was made, enquiries from people who have holiday homes in Pembrokeshire and now want to consider letting their properties have soared.
“We’re always happy to advise and give illustrations to would-be owners of holiday homes. We can advise how to switch to business rates and we let thousands of weeks of holiday rental each year. For those new to the idea of holiday letting, I think they’ve been surprised at the level of return they can get from their property, and with these new charges, they see this as the time to take the plunge.”
The council-led changes stem from concerns from various Local Authorities throughout Wales, where second homes make up large proportions of local tourist areas. Due to the rise in holiday home ownership in these areas, it has become harder for first-time buyers to buy homes in their desired locations, and also had an impact on council budgets. New measures brought in by Gwynedd and Pembrokeshire specifically aim to change these trends.
As such, the impact on holiday home owners is starting to see a ripple effect.
