The second home tax rules in Tenby are sparking concerns among locals and businesses as they report a tough summer. The impact of the policy in Wales’ popular tourist destination is significant, with second home owners selling up at a rapid pace. Matthew Ronowitz, a local restaurant owner, warns that unless the Pembrokeshire county council reconsiders the 200% second home tax premium, Tenby may face a decline in trade.
Since councils gained the authority to increase the council tax premium on second homes by up to 300% in 2023, Pembrokeshire county council implemented a 200% premium earlier this year. Approximately a quarter of housing in Tenby consists of second homes or holiday lets. Second home owners have options to avoid the high tax, such as meeting commercial letting thresholds or putting their properties up for sale.
Property expert Carol Peett notes a surge in properties for sale in Pembrokeshire, impacting various individuals, including pensioners and farmers. The issue extends beyond tax burdens to the inaccessibility of second homes for local residents. Pembrokeshire council is reassessing the premium following concerns from residents about unaffordable tax bills and a significant rise in properties up for sale.
Business owners in Tenby, like Matthew Ronowitz, express reliance on second home owners and tourists for sustaining year-round trade. However, decreased occupancy and changed clientele are evident this summer, affecting local businesses. The potential loss of contributions from second home owners could have lasting repercussions on the town’s economy and employment opportunities.
While some appreciate efforts to address housing market inequalities, others argue that the premiums are excessive and driving contributors to local economies away. Jeremy Cargill, a guesthouse owner, shares how this summer has been quieter than usual in Tenby. The shift in clientele and decrease in overnight stays reflect the broader impact of the second home tax rules on the town’s hospitality sector.
As stakeholders await a decision on future council tax premiums, concerns remain about the long-term effects on local businesses, employment, and community sustainability in Tenby. Efforts to balance housing market dynamics and local economic viability are ongoing as stakeholders navigate the evolving landscape shaped by second home tax policies.