Gwynedd house prices plunge as council acts on second homes

Home costs in a north-west Wales county have fallen by greater than 12% year-on-year, in response to new figures from the Principality Constructing Society.

Cyngor Gwynedd, the native authority in Gwynedd, not too long ago launched a requirement to acquire planning permission to show residential properties into second houses or vacation lets.

Additionally it is one in every of a lot of Welsh councils which costs a 150% council tax premium on such properties.

Cyngor Gwynedd stated its purpose was to “enhance the provision of high-quality, inexpensive houses for native individuals”.

The autumn in worth represents the most important annual drop of any area within the Wales Home Worth Index, overlaying residential property gross sales within the closing three months of 2024.

The common home worth in Wales has remained broadly flat year-on-year and is now £233,194, in response to the constructing society.

Tom Williams and his household, who stay in Lancashire, are struggling to promote the second residence they personal in Morfa Nefyn, Gwynedd.

“I’ve 4 grandchildren who had an exquisite time there each summer season and it has been nice, we have beloved it,” stated Mr Williams, who has owned the home for 20 years.

Mr Williams and his spouse put the home available on the market in April 2024 however stated that they had had little curiosity from potential patrons, regardless of dropping the value by £40,000.

“I put it all the way down to all the opposite properties within the village which might be up on the market in the mean time,” he stated.

Mr Williams believes among the interventions by the native council have prompted lots of people to promote up, whereas additionally pushing aside potential patrons.

Cyngor Gwynedd has been making an attempt to deal with the scarcity of housing for native individuals in vacationer areas and has greater than doubled the council tax cost on second and vacation houses.

The council additionally not too long ago launched Article 4, which requires property homeowners to acquire planning permission to show residential houses into second or vacation houses.

“I’ve spoken to a whole lot of households who’ve had houses there for generations and so they’re saying the identical factor – how can we stock on with this?” stated Mr Williams.

North east Wales property agent Dafydd Hardy described the housing market in Gwynedd as “combined”, with native interventions on second houses resulting in “extra properties coming onto the market”.

However he stated the value of a second residence was usually “exterior the affordability of the native purchaser”.

“What we have to see is steadiness available in the market,” he stated, together with “extra home constructing so far as first time patrons are involved”.

In response to the Wales Home Worth Index, Pembrokeshire noticed the second largest annual fall in costs at 8.9%. The council there not too long ago voted to scale back the council tax premium on second houses from 200% to 150%.

By comparability, Carmarthenshire noticed the most important year-on-year enhance in home costs at 9.2%. The council there’s introducing a council tax premium of 100% on second houses from April.

Iain Mansfield of the Principality Constructing Society stated the housing market throughout Wales had proven “resilience” over the previous 12 months.

Gross sales have been up by 28% year-on-year, which Mr Mansfield stated demonstrated “better client confidence” with decrease rates of interest making mortgages extra inexpensive.

“I feel we’re seeing a extra optimistic outlook for these individuals who need to purchase a home in 2025,” stated Mr Mansfield.

Mr Mansfield stated the “sizeable” drop in costs in Gwynedd over the previous 12 months was mirrored in “among the different coastal areas in Wales”.

He stated the drop might “probably” be defined by “among the interventions which have been made within the space round second residence possession”.

Cyngor Gwynedd stated that “over 65% of Gwynedd’s inhabitants was priced out of the housing market” and tackling the housing scarcity was a “key precedence”.

The council stated it launched Article 4 to “achieve higher management over the present housing inventory” and so they have been “repeatedly monitoring its results”.

They added that among the cash raised by the council tax premium was used to allow “the event of latest houses, the creation of supported lodging for these dealing with homelessness and grants and loans to assist native individuals safe housing, amongst many different initiatives”.