Introduction

With its stunning beaches and charming streets, Tenby has long been a desired destination for tourists and second homeowners alike. However, recent measures implemented by the local council aim to tackle the growing issue of housing accessibility for residents. The new 200% council tax premium for second homes, introduced in July of last year, has resulted in a significant increase in properties for sale, raising questions about the future of Tenby’s housing market and its economy.

Current Trends in Second Home Ownership

The rise in second home ownership has been a defining feature of Tenby’s real estate landscape. According to recent statistics, the number of second homes for sale in the area has surged dramatically:

• In July of last year, 38 second homes were on the market.
• This year, that figure has risen to 135, marking a 25% increase.

Despite the increase in listings, the number of second homes being purchased has declined. In the first half of this year, only 4.5% of house purchases in the area were for additional homes, a significant drop from 21% a decade ago. This change indicates a shift in the market dynamics, reflecting the impact of the new council tax policies.

The Economic Impact of Second Homes

Second homeowners contribute to the local economy, especially during the bustling summer months. However, their impact dwindles in the off-peak seasons. Matthew, who operates three restaurants in Tenby employing 75 staff members, highlights the dual nature of this economic relationship:

Positive Contributions

• Second homeowners provide disposable income that helps sustain local businesses.
• Their presence supports a year-round economy, crucial for local jobs.

Concerns for the Future

Matthew expresses concern that if second homeowners feel alienated by local authorities, it could adversely affect business sustainability. This tension raises questions about finding a balance that maintains economic stability without compromising the needs of local residents.

Reactions from Local Homeowners

Local residents have mixed feelings about the council tax premium. Eva, a second homeowner from Cardiff, has owned her property in Tenby for 30 years and recently saw her council tax bill escalate from approximately £2,000 to £7,000:

Concerns About Taxation

Eva articulates her frustrations with the new tax, describing it as an additional burden that undermines the benefits of maintaining a second home in the area. Many locals share her concerns, arguing that the council’s approach may not effectively address housing shortages.

Local Government Perspective

Officials maintain that the council tax premium will generate over £10 million annually, which they aim to allocate to housing solutions for residents. Their goal is to encourage full-time residency in Tenby, fostering a community that thrives year-round.

Broader Implications Beyond Wales

The implications of the council tax premium are being observed closely beyond Wales, with similar measures set to be introduced in parts of England, such as Cornwall. Critics argue that targeting second homeowners may not effectively address the broader housing crisis:

• Concerns about potential displacement of second homeowners.
• Debates surrounding the effectiveness of such policies in increasing affordable housing stock.

As Tenby navigates these challenges, its experience may serve as a case study for other regions grappling with similar issues involving second homes and local housing availability.