More than 800 second home owners in Pembrokeshire have avoided paying one of Britain’s highest council tax premiums — by using a legal exemption that allows them to list their property for sale or rent.
Figures published in a council consultation show that of the 4,328 second homes in the county, 3,503 — around 81% — were subject to the 150% premium in June. The remaining 19% were exempt, with many owners believed to be using a legal workaround that grants a 12-month reprieve if the property is publicly marketed.
The exemption, permitted under the Local Government Finance Act, does not require owners to sell or let the property — only to list it at a reasonable market price. Critics say this allows some owners to avoid thousands in council tax without any real intention of parting with their second home.
Carol Peett, a buying agent at West Wales Property Finders, said:
“There’s no question they are doing it. People are finding ways to get out of paying the tax. They are being forced into ways of avoiding it, as it’s crippling for the lower-end properties.”
Pembrokeshire’s premium was first introduced in 2017 at 50%, rising to 100% in 2022 and peaking at 200% in 2024. Councillors voted to reduce the rate to 150% in April this year, acknowledging concerns that the policy had gone too far.
Despite the reduction, Pembrokeshire still shares the highest second home premium in Britain with Gwynedd and Denbighshire. A Band D second home owner in the county now pays £4,130 annually — compared to the standard rate of £1,651. Those in the highest council tax band face bills approaching £10,000.
Cllr Aled Thomas, a Conservative member of Pembrokeshire Council, questioned whether the exemption was being abused:
“I don’t think people are using it to game the system. I think people are generally trying to sell their properties because they’re fed up of being treated like a martyr here in Pembrokeshire.”
The council confirmed that there are seven types of exemptions that account for the 19% figure, including the sale or rental listing clause. A spokesperson said:
“To receive this time-limited exception, the homeowners must provide evidence that the property is being marketed for sale. For example, they must provide a copy of the sale particulars and listing on a website at a reasonable price.”
Pembrokeshire Council raised £10.6 million in 2024–25 through the premium, though the money is not ring-fenced for housing and instead goes into the general fund. A public consultation is currently underway to determine rates for 2026–27.
