Gwynedd’s housing market is set for a massive shake-up in six weeks’ time. New planning rules agreed today (Tuesday, July 16) will affect many homeowners in the county by restricting future usage of their properties.
Cabinet members at Cyngor Gwynedd have approved the use of an Article 4 Direction, which will force people to get planning permission to change their homes into a second home or holiday let. In doing so, Gwynedd has became the first local authority in Wales to introduce the controversial measure. Eryi National Park, which has a separate planning authority, is expected to follow suit next year.
Opponents have accused the council of deliberately trying to “crash the housing market” amid fears Article 4 could devalue all homes in the area it oversees. In a county grappling with a housing crisis, fuelled by second homes and, increasingly, holiday lets, Cyngor Gwynedd said it has a duty to give local people access to suitable and affordable homes.
READ MORE: What new 20mph guidance says about which Welsh roads could return to 30mph
READ MORE: Body of Jay Slater formally identified as cause of death update issued
The changes will come into effect from September 1, 2024. They will not apply to properties already established as second homes or holiday lets before implementation. Among those supporting the measures was Cymdeithas yr Iaith, whose members gathered outside the council building in Caernarfon today.
They included Osian Jones from Caernarfon, who is part of the Cymdeithas yr Iaith’s Nid yw Cymru ar Werth (Wales is not for Sale) campaign. Welcoming the decision, he added: “Cyngor Gwynedd is only one planning authority among 25 and the housing crisis exists beyond its borders.
“In every community in Wales, whether Welsh or non-Welsh speaking, families and young people face uncertainty and threats to the viability of their communities. They are forced to leave because rent and house prices are beyond their reach.
“We hope that other local authorities in Wales will notice today’s decision and follow the example set by Gwynedd. But for that to happen the Welsh Government needs to provide financial support for authorities and clear guidance on the implementation of the Article 4 Directive.” Join the North Wales Live WhatsApp community group where you can get the latest stories delivered straight to your phone
Cyngor Gwynedd has already engaged two extra members of staff to deal with the additional workloads. Financial pressures were being cited as a concern by Eryri National Park, which has prioritised work on submitting an Article 4 Direction for its Local Development Plan.
In April, Conwy Council referred to staffing and cost challenges as a reason not to continue with the policy. Ceredigion Council has said it will wait to see how the process operates in Gwynedd.
In a Justification Report presented by Cyngor Gwynedd before last year’s consultation process, research was presented showing that 65.5% of the county’s population cannot afford to live locally and that measures introduced so far – such as increasing premium council tax on second homes – were not enough on their own. The local authority said all consultation comments were given “careful consideration”.
Cllr Dafydd Meurig, cabinet member for the environment, said local, affordable housing locally was key to securing the future of communities. He added: “Unfortunately, research shows that a significant proportion of people in Gwynedd are priced out of the housing market and that is more evident in communities with higher numbers of holiday homes.
“It is therefore inevitable that the significant number of houses being used as second homes and short-term holiday accommodation is affecting the ability of the people of Gwynedd to access homes in their communities. By introducing an Article 4 Direction, the Council will have a new tool to try to control the impact of second homes and holiday accommodation.”
Among coastal areas with large numbers of second homes is Abersoch on the Llŷn Peninsula. Rhys Elvins, of Abersoch-based Elvins Estate Agents, told BBC Wales that open market values may become difficult to achieve for people selling their homes.
He said a lack of decent jobs was driving the unaffordability trend – one being seen right across the country. “It won’t make a difference,” he said, referring to Article 4. “There’s nearly 80 unsold properties under £200,000 within a 10-mile radius of Abersoch at the moment on Rightmove.”
Under the new rules, primary homes are properties occupied for more than 183 days in a calendar year. Second homes are those occupied for less than 183 days. Short-term holiday lets are properties rented out for less than 31 days for each occupation period.
Second homes and holiday lets can switch to primary homes without planning consent – but the opposite will need permission, which critics fear will be hard to get. Get all the latest Gwynedd news by signing up to our newsletter – sent every Tuesday
Find properties for sale or let near you