45 applications to turn second homes into holiday lets

By Elgan Hearn, Local Democracy Reporter

Powys County Council has received 45 applications this year, from people who want their second homes listed as a holiday let.

In recent years, around 125 holiday homes in Powys have made the switch, and now pay Business Rates rather than Council Tax.

To qualify they need to let the home for 70 days a year, and it needs to be available for 140 days.

Business rates are paid to the Welsh Government, who then share the money between all 22 Wales local authorities, while Council Tax goes straight to PCC.

The data has come to light following questions submitted to cabinet members by Plaid Cymru group leader, Cllr Elwyn Vaughan, using the questions at anytime process.

Cllr Vaughan, said: “As we are aware, many of those that have holiday homes try to register their properties as a business to avoid paying Council Tax.”

He pointed out that these properties would need to comply with building regulations which includes having a fire sprinkler system. Checks to see if owners comply with these regulations can be made.

Cllr Vaughan asked if the council is checking that owners comply with the regulations and how long do the owners have to make any changes to the property to ensure that they are legally compliant?

Protfolio holder for Finance – Cllr Aled Davies – and Potfolio holder for Economic Development, Planning and Housing, Cllr Iain Mcintosh issued a joint answer to the questions.

They said: “Building control can only require the holiday lets that have been created within the last two years to comply with building regulations.

“Letters have been sent to those that are known to building control as being within the two-year period requesting them to make contact.

“However, building regulations do not impose time scales on how long building works can take to complete.”

In recent weeks, a consultation has been held asking people for their views on raising the council tax premium on holiday homes/second homes, called “periodically occupied properties” by PCCm to 75% over the normal bill.

This followed a notice of motion put forward by Cllr Vaughan at a council meeting in September being supported by a majority of councillors to hike the premium up from 50% to 75%.

Powys has around 1,262 holiday/second homes paying the current premium of 50% which generates £700,000.

If the premium is increased to 75% it would generate an extra £350,000 for the authority but it is unlikely to come into force until 2021/22 financial year.