Rebecca Evans MS, Minister for Finance and Local Government
On 20 December 2021 I published a consultation paper on the proposals on local variation to land transaction tax (LTT) rates for second homes and holiday lets. The consultation sought views on changes to LTT aimed at providing an advantage to purchasers of properties that will be used as main residences in areas where high concentrations of second homes and short term lets are adversely impacting on a community. Today, I am publishing the summary of responses to this consultation.
I have been encouraged by the excellent response to this consultation, which attracted more than 800 submissions, and by the support expressed for the proposals.
Across the responses there was broad agreement in favour of the principle of introducing local variation of rates for second homes and holiday lets. Further, there was widespread support for the proposal that the new rates apply to properties purchased for use as holiday lets as well as second homes, but not to other types of transactions that are currently subject to the residential higher rates.
It is clear from the results of this consultation exercise there is strong support for action in this area. I have written to all the local authorities in Wales to engage them in developing a national framework in which local authorities can request that the new rates for second homes and holiday lets apply in those areas.
I would like to thank everybody that responded to the consultation for taking the time to share their views.
As part of the Co-operation Agreement with Plaid Cymru, we are committed to taking immediate action to address the impact of second homes and unaffordable housing in communities across Wales, using the planning, property and taxation systems.