Sun, Sea, Sand and Article 4 Directions

A persistent need for housing in Wales’ holiday hotspots has led to the Welsh Government introducing new measures for authorities to manage pressures. We dive into the challenges and opportunities for housing and holiday accommodation in Wales.

Across Wales, second homes and short-term holiday lets constituted 2.5% of all dwellings in 2023, with holiday hotspots including Gwynedd (13.4% of all dwellings), Pembrokeshire (10.9%) and Anglesey (9.9%).

In August-September 2023, Gwynedd Council consulted on proposals for an Article 4 Direction, which it hopes will help the Council manage the number of second homes and holiday lets in its area through the planning system. If implemented, this would be the first Article 4 Direction of its kind in Wales. Other authorities in Wales will be no doubt considering the merits of doing the same.

In this Insight focus, we explore a number of assumptions regarding the impacts of second homes and short-term holiday lets in Wales. We also review the potential consequences of the introduction of Article 4 Directions for the housing market, the tourism industry and for local authorities.