Evaluation of the Second Homes and Affordability Pilot: phase 1 report (2023 to 2024)

Scoping interview findings

• The interviewees provide positive feedback on Homebuy – Wales, highlighting a large number of successful applications.
• The Empty Homes Grant was considered a positive example of the joined-up approach between Welsh Government and the delivery partners.
• There has been public interest in Self-Build Wales. However, practicalities such as a lack of available mortgage products to support people accessing the scheme created uncertainty.
• Interviewees felt that Article 4 could have a substantial effect positive effect on Gwynedd’s housing market. However, they also identified several risks which could impact on local people and delivery partners.
• The council tax premium was described as funding proposals within Cyngor Gwynedd’s Housing Action Plan. 

Interviews and focus groups

• The majority of young people, affordable housing applicants, and local community members felt that housing is unaffordable within Dwyfor.
• Respondents felt second homes and holiday lets in the area are having negative impacts on community cohesion and Welsh language.
• However, some interviewees also said that the area is dependent on tourism and that these properties can create employment opportunities.
• There was mixed awareness of Pilot activities among young people, affordable housing applicants, and local community members. The most awareness was for the council tax premium for second homes, Article 4, and support through Tai Teg.
• Second home and short-term lets owners were aware of the Pilot, but only one felt the measures were justified. They discussed Pilot impacts such as having to sell properties, uncertainty around Article 4, and positive impacts of Homebuy – Wales

Survey findings

• In contradiction with findings from the interviews, most survey respondents aged 18 to 35 felt that their current housing situation is affordable.
• The majority of 18-35-year-old respondents expressed that second homes and holiday lets have an overall negative impact on their area. They felt these negatively impact on (i) sense of community, (ii) Welsh language, and (iii) affordability of housing.
• However, there was some discrepancy between the views of the 18-35-year-olds and the respondents aged 36+. The 36+ age group felt that second homes had a positive impact on the local area.