Gwynedd house prices plunge as council acts on second homes
Published On Feb 16, 2025, 4:51 PM
In Gwynedd, Wales, measures aimed at regulating second homes and holiday lets have led to a significant 12% decline in house prices over the past year. The local council has introduced a requirement for property owners to obtain planning permission for turning homes into second residences and increased the council tax premium on such properties from 100% to 150%. This decline is the largest recorded across Wales, coinciding with broader challenges in the housing market, where many locals feel excluded due to rising property prices. Overall, while house prices in Wales have remained stable, the interventions in Gwynedd aim to increase the availability of affordable housing for residents.
Stock Forecasts
AVB
Negative
The ongoing regulatory changes in Gwynedd to address the shortage of affordable housing could lead to further declines in property values in tourist areas, affecting related sectors such as real estate investment trusts (REITs) focused on vacation rentals. Investors should be cautious of companies heavily exposed to markets similar to Gwynedd, which are facing similar regulations.
Related News
More people in late 20s still living with parents
Jan 10, 2025, 7:40 PM
The rising cost of buying or renting home has led more to remain in the family home, a think-tank says.
How ‘perfect storm’ blew away planned social homes England needs
Oct 6, 2024, 8:11 PM
Housebuilders say they have thousands of social homes ready to be built but no customers to buy them.