Second home owners in Wales could face a huge tax hike next year, according to the Welsh Government. 

The proposals are part of a move to tackle the negative impact vacant houses, holiday lets and soaring property prices are having on local communities.

Local authorities can set council tax premiums on second home and long-term empty properties to a maximum of 300 percent. 

This means that from April 2023, councils can set the tax at any price up to that level. 

South Wales Argus: The measures are part of a wider commitment to address the issue of second homes and lack of affordable housing facing many communities in Wales (PA)The measures are part of a wider commitment to address the issue of second homes and lack of affordable housing facing many communities in Wales (PA)

Currently, the maximum premium councils can charge is 10 percent, therefore the new policy constitutes a possible tax rise of 20 percent.

Climate change minister Julie James said: “We want people to be able to live and work in their local communities, but we know rising house prices are putting them out of reach of many people, exacerbated by the cost-of-living crisis we are facing.

“There is no easy answer or quick-fix solution. This is a complex problem that requires a wide range of actions.

South Wales Argus: Climate change minister Julie James (PA)Climate change minister Julie James (PA)

"We continue to carefully consider further measures that could be introduced, and these changes are the latest steps we are taking to increase the availability of homes and ensure a fair contribution is made.”

Ministers are implementing the change to ensure secondary properties are being let regularly as part of holiday accommodation businesses which are contributing to the local economy. 

Finance minister Rebecca Evans added: “These changes will give more flexibility to local authorities and provide more support to local communities in addressing the negative impacts that second homes and long-term empty properties can have.

"They are some of the levers we have available to us as we seek to create a fairer system.”

The measures are part of a wider commitment to address the issue of second homes and lack of affordable housing facing many communities in Wales, as set out in the Co-operation Agreement between the Welsh Government and Plaid Cymru in 2021.