Campaigners expected to drop judicial review bid against Welsh council’s second home premium

A campaign in Wales to fund a judicial review into Gwynedd Council's decision to double the council tax charge on holiday homes appears to have been dropped, according to a report from the Local Democracy Reporting Service.

The campaign group has raised over £8,000 - beating their original target of £6,000 - to pay for legal advice on the merits of applying for a judicial review. But according to the Local Democracy Reporting Service, the campaigners recently told their supporters in an email that the risks of a legal challenge outweigh the chances of success.

The email also said that the campaigners' prospect of securing a judicial review was "at between 50 and 60% – but with a risk of incurring substantial legal costs in court," the Local Democracy Reporting Service reported.

Gwynedd voted to increase the premium on the council tax of second homeowners to 100% on 4 March 2021.

The man who set up the crowdfunding campaign, Anthony Chancellor, called Gwynedd's policy "unfair and discriminatory" and said he believed the decision was based on "anti-English sentiments".

According to Mr Chancellor, some residents will have to pay around £3,600 a year in council tax for a two-bed property.

"Little consideration was given to the impact on older people, those who suffer from disabilities or those who are on fixed incomes," Mr Chancellor added.

"Some of our group are pensioners and will genuinely struggle to pay. Furthermore, the decision disproportionately affects those who aren't Welsh."

Earlier this month, the council called on the Welsh Government to adopt the recommendations of a report that proposed strategies on curbing second home-ownership in Wales. One recommendation in the report encouraged county councils to raise the council tax premium on second homes to 100% if the council considers second homes to be a serious social problem.

Eleven per cent of the housing stock in Gwynedd county is classified as a second home, the highest percentage in Wales.

Cllr Dyfrig Siencyn, Leader of Gwynedd Council, said that a significant number of local residents are facing a situation where they "cannot afford to buy a home within their local community".

Cllr Siencyn added: "We believe this is unjust. Gwynedd Council's clear and firm desire is to ensure that every possible measure is used to try to respond to the housing crisis facing the county's residents in their communities today."

According to the crowdfunding page, Anthony Chancellor received advice from 30 Park Place Chambers.

A Gwynedd Council spokesperson said: “Recent research shows that 60% of Gwynedd residents are priced out of the housing market. At the same time, Gwynedd has the highest percentage of second homes in Wales and is amongst the highest in terms of long term empty properties. The Council was given specific powers by the Senedd to set a Premium of up to 100% on the Council Tax in relation to both these types of properties.

“The Council has made it a priority to address this situation and to help ensure a suitable supply of affordable housing for local people to live in their communities through our Housing Strategy.

“After a careful discussion and deliberation, and having considered and balanced all relevant factors including the results of a public consultation exercise and implications of the decision, Gwynedd councillors decided at a full Council meeting on 4 March, to increase the Council Tax Premium on second homes and long term empty properties from 50% to 100% for the 2021/22 financial year. This decision is expected to generate an additional £3 million of additional tax yield to be earmarked for the delivery of the Council’s Housing Strategy.”

Adam Carey