Short-term holiday lets
The consultation seeks views on how Land Transaction Tax (LTT) rates could be altered to improve opportunities for those looking to purchase permanent homes and proposes that the Welsh Government could increase LTT rates for some transactions including for second homes and short-term holiday let property to reflect localised challenges in housing supply or high second homeownership. Such an approach could be varied over time in accordance with market changes.
The proposal suggests that increasing the LTT higher rate may be more effective in areas in which second homes and short-term holiday lets are not presently problematic but in danger of becoming so, to slow the increase as opposed to areas where second home ownership is already more prevalent.
It is hoped that such a change to policy would result in a reduction in second home purchases and lead to a higher proportion of main residence property in certain areas. The Welsh Government, therefore, acknowledges that LTT higher rate revenue may decrease consequently, which may have resource implications overall.
Propertymark recently responded to the Welsh Government’s consultation on local taxes and their impact on second home and holiday let ownership and will also be responding to the consultation on changes to planning policy. We are keen to hear from Propertymark members who have views on LTT to contribute to our submission, which can be emailed to our Policy Team.
The Welsh Government has sought views on whether powers afforded to local authorities to charge a council tax premium on second homes and long-term empty properties are effective at tackling housing issues.
The Local variation to land transaction tax rates for second homes, short-term holiday lets and potentially other additional residential properties consultation closes on 28 March 2022.