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    Home»Property»UK housing estate largely unsold two years on as holiday home rules bite
    Property

    UK housing estate largely unsold two years on as holiday home rules bite

    June 17, 20264 Mins Read


    The development has been complete and on the market for two years, but only two of the 16 properties have been sold due to holiday home planning restrictions

    A housing estate sits almost empty despite building work being completed and the properties going on the market two years ago. The homes are located in the small village of Brynteg – close to the popular seaside resort of Benllech in Anglesey.

    They are advertised as “turnkey” properties that arrive furnished and ready to move into. Yet at Parc Delfryn, positioned next to Storws Wen golf club, only two of the 16 completed homes have attracted purchasers.

    The developer puts this down to a planning condition attached when permission was given in 2007. This stipulation stated that the three-bedroom houses could only be used as holiday properties.

    This limitation had not affected sales during an earlier 20-property development that was completed in 2022. That first phase by the same developer sold out exceptionally quickly, reports Wales Online.

    However, the situation has changed in recent years with growing concerns about inadequate local housing.

    This has led to restrictions being imposed on holiday homes, with second properties facing a council tax premium (currently 100% on Anglesey) unless they meet the criteria as holiday lets that are rented out for at least 182 days annually.

    This has reduced appetite for second homes on the island. While the policies have been welcomed by many, it has proved damaging for the developer of Parc Delfryn.

    With just two of the 16 homes sold – the developer wants to take a different route. They are urging Anglesey council to lift the planning restriction and allow the properties to be sold as residential dwellings.

    A planning agent says the applicant and owner Collette Cartwright has signalled she would be prepared to accept conditions restricting sales to people with connections to the island.

    The properties are currently listed at £250,000 after multiple price cuts.

    Agent Simon James, from PLanD, said: “A phase one scheme, also built out by the applicant, comprised 20 holiday homes under a separate planning permission, and was commenced in February 2020.

    “This was completed by Easter 2022, the dwellings were marketed and were sold very quickly, however, this took place prior to the tax changes brought into place by the Welsh Government to deter the growth in holiday and second homes in favour of primary residential uses, and which, in line with their objectives, have dramatically affected the local property market.”

    He added: “To date, the applicant, notwithstanding the extensive efforts expended in seeking to sell the dwellings over two years, has only sold two properties.

    “This in particular has occurred at a time when there is both clear government policy pressure to discourage the creation of holiday homes, in preference to full residential dwellings, and demonstrably, a good level of demand for family homes, itself increased by declining delivery of family homes and a likely rise in demand as both interest rates fall and recently announced significant economic investment in the area.

    “There are therefore 14, fully completed, modern family homes ready to be occupied, but which, because of the particular occupancy restriction imposed, are unattractive in the market for the consented, restricted use, even though the price has been reduced quite substantially over time.

    “At the same time, in the view of the marketing agents, the dwellings would have been very attractive in the general housing market as family dwellings.

    “The applicant has turned away at least 37 families who enquired about the potential purchase of the properties as full time family homes, i.e, these were not general searches, but specific enquiries made of the properties.”

    Estate agents Dafydd Hardy and Beresford Adams were commissioned to prepare a report examining the site’s marketing history.

    It found: “We have, we believe, demonstrated that a comprehensive, wide-ranging and sustained marketing campaign has been carried out with a very engaged client/owner who has responded to the marketing advice we have given.

    “This has yielded very little positive results, and this indicates that the market for second/holiday homes, at the very least in Brynteg, is simply not there at this time.

    “The question therefore is, is it right to leave valuable housing stock lying idle when it can be put to a positive and sustainable use, and meet the acknowledged need of local families seeking attractive and long-term family housing.”

    The proposal is currently being assessed by planning officers at Anglesey Council.



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