Gwynedd council in Wales is preparing to launch an appeal after losing a legal challenge to its clampdown on second homes and short and holiday lets.

The High Court ruled last week that the council’s decision to adopt an Article 4 direction – which meant planning consent would be required for changing the use of housing to second homes, short lets or holiday accommodation – was ‘reached on a false basis’.

The local authority in Gwynedd has operated a virulent anti-landlord and anti-second home operation for some time. 

It already imposes a 150% council tax premium on additional homes, while across Wales additional homes attract a 5% surcharge on top of the normal Land Transaction Tax – the Welsh equivalent of stamp duty. 

On top of that, to register a holiday let as a business – and thus receive less punitive taxation – the property in question has to be made available to let for at least 252 days of the year and actually let for at least 182 days. And for the past year Gwynedd has adopted the Article 4 direction, meaning owners have top win planning consent to turn a primary home into a holiday let or second home.

The High Court last week found that the council’s cabinet members were wrongly told that Article 4 gave it a ‘blanket measure’ controlling all changes to holiday homes, when it only covers “material” changes of use – not the casual change of an individual owner’s home into a second property for their own holiday use, for example.

The People of Gwynedd Against Article 4 campaign group raised £73,000 to challenge the council’s policy, and now wants the authority to reimburse it for legal costs.