I AM sure that like me there are a large number of second home owners re-evaluating the viability of their property in Pembrokeshire.

Despite the likelihood of popular local support for the council tax premium it will be viewed by most who own such properties as punitive and a breach of trust.

So what you may ask? Well it’s a gamble, the council are aware of this, and are hoping for an outcome where everybody pays up, because other possible outcomes are not so good.

The first outcome is that because the premium is not universally applied it will result in a fall in the number of people choosing to buy property in the county.

This may be perceived in the long term as good for local housing opportunities, but it also means that people currently trying to sell will experience a fall in potential purchasers, particularly in prime areas.

They will not be able to sell unless they substantially reduce their price. This applies to all people trying to sell.

The second outcome is that some second owners will seek to limit their exposure to the tax by letting their property out for a maximum of 70 days. These people do not want to be tied to onerous contracts or commission charges by holiday letting companies so will make use of airbnb and similar platforms.

As well as offering them the opportunity to make use of their property for the rest of the year it also covers their costs and may mean that their net payments to the council actually goes down.

The third outcome is that people will sell up and move their property investment to a more benign taxation area.

People employed by these owners will be out of pocket and out of work.

From my perspective I have yet to decide on what to do, ( I would happily pay a premium of 10-15 per cent) but having spent about £250k in the local economy in the past 14 years in terms of building restoration, holidays, entertainment and council tax, I thought I had already made a significant contribution.

This figure does not include the expenditure of all the other people, extended family and friends who have spent time in the house visiting restaurants and pubs etc.

Fortunately, I have choices and will move on. The inconvenient truth is that for people who rely on second home owners for their livelihoods they may not be able to.

BAB

Manorbier