THE WELSH GOVERNMENT has rejected a request from Pembrokeshire County Council to reconsider its 182-night rule on holiday letting.

In a letter to the local authority from Wales’s Finance Secretary, Mark Drakeford, the Welsh Government said it would not reconsider its approach until it had two years’ data on its effects.

The Labour government introduced the 182-night rule to target property owners who casually rent properties and pay neither the increased Council Tax premium on second homes nor Small Business Rates. By encouraging owners to release properties onto the for-sale market, the government wants to increase the availability of homes in Wales’s holiday hotspots. It’s a blunt tool, and there have been predictable but unforeseen consequences (at least by the Welsh Government). The rule’s introduction has reduced the number of properties upon which owners pay either the enhanced rate of Council Tax for second homes or pay business rates.

A LETTER TO MARK

On October 17, Pembrokeshire’s county councillors instructed the Council leader to write to the Welsh Government asking for a reduction in the 182-night rule.

Although councillors agreed an increase in the previous threshold was welcome, many felt the letting target was too high for many viable businesses.

The letter to the Welsh Government said: “Whilst 182 days is certainly achievable in some of our main tourist towns such as Tenby, Saundersfoot, and Newport, it was very difficult to achieve this in other parts of the county, particularly away from the sea.”

The letter said the rule is having a detrimental effect on Pembrokeshire’s vital tourism industry.

Council Leader Jon Harvey’s letter also said: “We do not wish to implement any local policy decisions that would conflict with Welsh Government, and, as such, I am formally writing to you to ask the Welsh Government to consider reducing the 182 days let threshold for self-catering properties to qualify for Non-Domestic Rates.”

DRAKEFORD SAYS “NO”

In a reply from Mark Drakeford, which was circulated to all Council members, the Welsh Government refused to reconsider its position ahead of the next tourism season.

Mr Drakeford said: “The primary aims of our changes to local taxes are to ensure property owners are making a fair contribution and to maximise the use of property to the benefit of local communities. This could include benefits arising from increased occupancy for short-term letting or the release of some properties for sale or rent as permanent homes for local people.

“As a consequence of the changes, self-catering properties are classed as non-domestic only if they are being used for business purposes for the majority of the year. This provides a clearer demonstration that the properties concerned are being let regularly and are making a substantial contribution to the local economy.”

Mr Drakeford claimed that information from businesses engaged in holiday letting showed the Welsh Government’s approach was having the effects Cardiff Bay desired. That seems contrary to data provided by the Wales Tourism Alliance and the figures produced for Pembrokeshire County Council’s budget.

Confirming the Welsh Government has no plans to reconsider its position, Mark Drakeford said: “We understand that there may be a period of adjustment, as some property owners consider their options and determine how to respond. It will be important to allow time for the changes to embed before drawing any firm conclusions.

“The initial impact on the number of self-catering properties classified as non-domestic will be known after April 2025, when two years will have elapsed since the changes took effect. This is when the Valuation Office Agency is expected to have completed a full round of routine compliance checks.”

Claiming that reconsidering the position would cause “uncertainty” in the private letting sector, Mr Drakeford wrote: “There are no plans to undertake a formal review in the short-term, nor in isolation from the broader package of measures within our three-pronged approach to tackling the impact that large numbers of second homes and holiday lets can have on communities and the Welsh language.”

That’s not only a “no”, it’s a “no” with knobs on.

YOU ALREADY HAVE ALL THE TOOLS YOU NEED

Mark Drakeford doubled down on his “no” by claiming Pembrokeshire County Council already had all the tools it needed to address the problems caused by the tourism tax.

He said: “We have extended the exceptions to council tax premiums to include properties with a planning condition which specifies that the property may only be used as a holiday let or prevents its permanent occupation as a person’s sole or main residence. We have also provided

guidance for local authorities on the use of discretion to tailor their arrangements to reflect local circumstances.”

Quite how designating a property for a holiday let allows its release onto the local housing market where homes for local families are in short supply is unaddressed.

The Finance Secretary continues: “Where a self-catering property does not meet the letting criteria and is not subject to a planning condition, the Welsh Government has provided local authorities with as much discretion as possible to consider the approach to take for the benefit of your communities.

“We consider our local taxation regime will help local authorities to incentivise the right balance between capacity within the self-catering tourism sector, and [its[ economic benefits and supporting viable communities of local residents to live and work in these areas.”

If, as Mark Drakeford claims, Pembrokeshire County Council has all the powers and options it needs to address the issue, there will, no doubt, be a flood of information coming from the Council’s Cabinet Member for Finance, Joshua Beynon, to show members precisely where the rabbit that should be in the hat is hidden.

PLANS for an estate of 91 houses, more than 40 per cent of them affordable, in a Pembrokeshire town have been backed despite concerns about road safety and the ability of the town’s infrastructure to cope.

In an application recommended for conditional approval at the December meeting of Pembrokeshire County Council’s planning committee, Wales & West Housing Association sought permission for 91, one, two, three and four-bedroomed homes on land to the north of Adams Drive and to the west of Bloomfield Gardens, Narberth.

28 affordable homes are proposed, along with 12 houses as Low-Cost Home Ownership Units, the remaining 51 homes for open market sale, the meeting hearing the affordable units would have a local letting policy.

Agent Asbri Planning Ltd, in a supporting statement, said: “The design led approach will create a high-quality place, that sensitively sits within the site retained wildlife corridors and positively connects to the community of Narberth.”

It added: “The development of a mixed tenure site for different types of homes will cater for a variety of local people. These include first-time buyers, growing families looking to move up the property ladder, those looking for bungalows or to downsize for their retirement.

“As indicated approximately half of the homes proposed will be for social rent or offered for sale as part of a discounted home ownership scheme for local people who want to buy their own home but cannot afford the high cost of houses in Narberth.”

The discounted sale properties will be delivered via Wales & West Housing’s ‘Own Home Cymru’ scheme which helps buyers with a local connection to purchase a home of their own at 70 per cent of market value without the need for a deposit.

Narberth Town Council has raised concerns about site access and the ability of the town’s infrastructure to cope with the additional homes.

Some 16 letters of concern were also received by planners, issues including site access concerns and safety, the traffic should be more equally split between the two sites, and the scheme exacerbating gridlock conditions already experienced on the town centre one-way system.

Concerns were raised at the meeting by local resident – and former county councillor – Vic Dennis, speaking on behalf of local residents, Mr Dennis echoing concerns about the site access layout, asking members to reject the scheme unless planners would look at alternate links to the development.

Local member Cllr Marc Tierney welcomed the additional housing but reflected the traffic concerns, saying said the town’s one-way system was already exhibiting difficulties.

The application was conditionally backed with delegated powers given to the head of planning to approve.

PEMBROKESHIRE residents can now enjoy the perfect festive soundtrack as Pure West Radio launches its dedicated Christmas station, “Pure X-Mas,” on DAB radio. Running from Saturday (Nov 30) to New Year’s Eve, the station promises nonstop Christmas music and holiday cheer for all listeners.

“Pure X-Mas” offers an exciting mix of timeless classics and modern holiday hits, creating a joyful atmosphere for decorating trees, wrapping presents, or simply enjoying the season.

Station Manager Toby Ellis said:
“This Christmas, we’re making it easier than ever for Pembrokeshire and beyond to tune into the magic of the season. Pure X-Mas on DAB is our gift to the community – a station entirely dedicated to spreading festive joy and creating lasting memories.”

Exclusively available on DAB, “Pure X-Mas” guarantees crystal-clear sound and easy access for listeners across North and South Pembrokeshire. Simply tune your DAB radio to Pure West Radio’s dedicated Christmas station and immerse yourself in the spirit of the season.