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Politics

Plaid proposes second home restrictions

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THE TIME has come for the Welsh Government to take firm actions to protect communities and first time buyers against the economic oppression of runaway second home purchases, according to Plaid Cymru.
On Wednesday (September 23) the party published a 16-page report containing five main recommendations ahead of a debate in the Senedd the same afternoon.
The proposed measures include:
• Changing planning laws to allow councils to impose a cap on the number of second homes, refuse permission for changing a dwelling from being from a primary to a secondary residence and disallow new properties from being purchased in areas where second homes make up to 20% of the local market
• Allowing council to charge council tax premiums of up to 200% on second homes and having the Welsh Government bring forward regulations to treble the LTT (Land Transaction Tax) charge on the purchase of second properties.
• Close the loophole that allows second home owners to register their property as “businesses” in order to avoid paying the council tax premium.
• Look at bringing in a licencing scheme for renting properties through companies such as AirBnB to control the amount of properties that can be used as a cash cow in popular holiday destinations where house prices are high.
• Proposals to empower councils to build houses with a local conditions on them, make it easier to bring empty properties back into use and redefine the term ‘affordable home’ (which currently includes properties worth over £250,000).
There were 4,000 in Pembrokeshire in 2018 (source PCC). In 2016 in Tenby, 35% of all homes were second homes/holiday lets (source PCC).
Lexden Terrace off St Julien Street, Tenby has six dwellings, five of which are second homes; in Harding Street, eight of eleven houses are second homes; in yet another street in central Tenby, 22 out of 31 houses are second homes.
Across West Wales, there are considerable fears that one of thecoronavirus pandemic has fuelled a housing ‘bubble’ due to the disease’s relatively low rate of infection and transmission in the locality.
“The proliferation of second homes in seaside towns and villages has been driving up property prices and driving away our young people for some time,” said Pembrokeshire County Councillor Mike Williams of Tenby.
“Unless action is taken to regulate the second home market, out coastal communities will become a playground for people who are rich enough to own more than one home. What use is the Future Generations Act if young people have no chance of having a future in their communities?”
Speaking to another local councillor last week, The Herald was told of one house which went on the market on a Friday this month and was sold to buyers from outside Pembrokeshire by the following Monday for £70,000 over its asking price.
When we spoke to a county councillor in Ceredigion, we were told a similar story: properties going onto the market are being snapped up over their asking price as second homes by outsiders attracted by the county’s excellent record handling the coronavirus pandemic.
Speaking about the publication of the report and ahead of the Senedd debate, Plaid Cymru’s shadow housing minister Delyth Jewell MS said: “People all over Wales have heard the cry of pain coming from the North West over the past few months, as the already unsustainable holiday homes situation spirals further out of control.
“The main purpose of devolution was so that we in Wales would have the powers to fix our problems ourselves, but the situation isn’t improving with over a third of homes sold in Gwynedd and Ynys Môn in the last financial year being purchased as second properties.
“12% of Gwynedd’s housing stock consists of second homes owned by people outside the county, this is among the highest in Europe and the subsequent price inflation in a low-wage area means that people are simply unable to buy a home within their own community.
“The series of measures proposed by Plaid Cymru today are designed to bring the situation under control and empower communities through targeted, proportional interventions and I hope the Welsh Government will consider them seriously.”
Ms Jewell added: “Countries all over the world have taken action in the face of similar circumstances, for example New Zealand and Denmark have simply banned property sales for non-citizens, and the Bolzano region is Italy has restricted the sales of holiday homes to people outside the region.
“We can’t go on like this, it’s not fair that people who are living in areas already disadvantaged in terms of a lack of work opportunities have to see their communities slowly being transformed as locals have to move away in order to find a house to live in.
“I am deeply concerned about the effect this will have on the Welsh language, it will be a stain on the conscience of the nation if the language is allowed to wither away in its heartlands simply because the Welsh Government doesn’t want to act.
“But this is an issue that affects the whole of Wales as house prices keep inflating – the measures on affordable housing, LTT rates and the localism clause would benefit first-time buyers all around the country.”

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Community

Social housing plans for Cleddau Bridge Hotel site backed

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A SCHEME to build 38 affordable and social housing units on the site of a fire-ravaged former Pembrokeshire hotel has been backed by senior Pembrokeshire councillors.

Pembrokeshire County Council’s Cabinet, meeting on April 22, supported a contract with developer Castell Group Ltd for the mix of affordable homes and social housing units at the Cleddau Bridge Hotel site, Pembroke Dock.

Members, in a report presented by Cabinet Member for Planning & Housing Delivery Cllr Jon Harvey, heard Castell had approached the council’s housing service to determine whether there is an interest in working with them to bring forward the development as a social/affordable housing site.

Castell Construction Ltd specialises in the construction of affordable / social housing, typically for registered social landlords across south Wales, and hopes to build 12 one-bedroom flats, 15 two-bed houses, five three-bed, two four-bed, and four two-bed bungalows.

The development package would be part-funded from the housing revenue account, the remainder from the Social Housing Grant and/or second homes premium for affordable housing if it becomes available for the Housing Service to use in this manner.

Cllr Harvey – who moved approval – said the scheme was expected to provide £230,000 a year in rentals income, describing it as “an excellent opportunity to work with a proven developer for extra social housing in an area of proven need.”

Deputy Leader Cllr Paul Miller said he was supportive of the scheme, as was local member Cllr Joshua Beynon, saying: “It’s a bit of an eyesore at the moment, if we can bring this site back into meaningful use, and in an area where there is a need, I’m all in support of this.”

Members backed senior officers be delegated powers to enter into the works contract, and to have powers to proceed with the land acquisition.

If a subsequent planning permission is secured for the site, the homes could be built by autumn 2026.

In a prime location at one of the entrances to Pembroke Dock, the former Cleddau Bridge Hotel has been derelict since a fire in March 2019, which brought emergency services from as far afield as Ammanford, Aberystwyth and Swansea.

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Community

County Hall to offer space for community banking

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A CALL for Pembrokeshire County Council to potentially change its banking arrangement with Barclays, after it closed its Haverfordwest branch has been turned down, but County Hall is to offer space for community banking.

Barclays Bank, on the town’s High Street, is to close on May 10.

The council has had a banking services contract with Barclays since 2013.

Councillor Huw Murphy, in a notice of motion heard by Pembrokeshire County Council’s Cabinet meeting of April 22, asked the council to review its banking arrangements with Barclays following the announced closure.

e said the loss of a branch “not only impacts upon town centres and businesses but also disproportionately impacts the elderly who are less likely to embrace on-line banking options”.

A report for Cabinet members said, in terms of the impact on Pembrokeshire residents, Barclays has said that it is “not leaving Haverfordwest and [will] continue to provide face-to-face support for those who need it” via community locations.

Two options were presented to Cabinet: to retender the banking services contract, and, the favoured, to work with Barclays to ensure a community location is set up in Haverfordwest.

Members heard the costs associated with moving to a new banking service provider could be in excess of £50,000.

For the second, favoured option, members heard Barclays was in discussions with the council about a location for potential community banking.

Cabinet Member for Corporate Finance Cllr Alec Cormack, after outlining the risks in the report for members, and moving the notice be not adopted, said he had “considerable sympathy” with Cllr Murphy’s notice.

He told councillors there was a glimmer of light for banking arrangements in the county, with an agreement now signed for two ground floor rooms at County Hall, Haverfordwest, to be used for community banking.

From April 25, the rooms will be available on Wednesdays, Thursdays, and Fridays, members heard.

Cabinet Member for Planning & Housing Delivery Cllr Jon Harvey also said he had “a lot of sympathy” for the motion, adding: “It’s excellent news a deal has been struck to occupy the ground floor rooms three days a week; hopefully this will mitigate, to a certain amount, the closure.

“If we can work with the respective banks to get a community-type approach let’s move forward.”

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Politics

Next stage of £19m Haverfordwest interchange backed

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THE SECOND stage of building Haverfordwest’s near-£19m transport interchange has been backed, with senior councillors hearing it could cost the council more to not support it.

The transport interchange, which includes an integrated bus station and construction of a new multi-storey car park, is part of a wider series of regeneration projects in the county town.

The total cost of the scheme in the approved budget is £18.881m, £1.987m from Pembrokeshire County Council; the remainder, £16.894m, from an already-awarded Welsh Government grant.

To date, £3.425m has been spent on advanced works, including the demolition of the old multi-storey car park and a temporary bus station.

Members of Pembrokeshire County Council’s Cabinet, meeting on April 22, were recommended to approve the award of the Stage 2 construction contract for the Haverfordwest Transport Interchange.

The report for members listed two simple options for Cabinet, to authorise the award of a contract, recommended, or to not.

For the latter it warned: “It is envisaged Welsh Government will withdraw the funding awarded and the council would need to repay grants received to date; £10.322m has been received to date of which £3.376m has been offset against expenditure.”

It added: “Cost to cease this project could cost PCC more in terms of grant repayment and any capital work required to make good. PCC match contribution for the project is forecast as £1.987m of the £18.881m.”

Planning permission for the interchange was granted in 2022, with a temporary bus station constructed that year and the old multi-storey building demolished in 2023.

That year, members of the county council’s Cabinet agreed a temporary car park will be sited on the demolished remains of the old multi-storey car park until the Haverfordwest Public Transport Interchange – delayed as no compliant tender had been found at the time – is built.

Speaking at the meeting, Deputy Leader Cllr Paul Miller said: “The interchange is an important part of the regeneration of Haverfordwest, it will not regenerate Haverfordwest on its own, it is part of a wider process. The alternative to us being engaged is we simply allow it to decline and fail.”

He said the interchange was about “making it easier to visit Haverfordwest,” making parking provision “really straightforward, making it easy and convenient as possible”.

Cllr Miller said not progressing with the scheme would risk the grants already obtained, meaning the council could potentially foot the bill for costs to date, at a greater level than progressing.

He said the cost options were a near-£2m subsidised council involvement for the whole scheme or the £3m-plus spent to date if the scheme was ended, which would leave the car park as it is now.

“It’s pretty reasonable that if they give us the money and we don’t build a transport interchange they’ll be looking for that money back,” Cllr Miller said.

He said previous figures from parking revenue – back in 2019 – amounted to £100,000 a year; and could be expected to at least double on a “like-for-like” basis following the increase in parking charges.

Members, after a private and confidential session over the actual contract details, agreed to proceed with the scheme, awarding the contract to Kier Construction Western and Wales.

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