Lawyers back plan for retirement 'hot-spots' if market distortion can be proved
People who are not welsh are likely to be barred from buying new homes in large parts of Wales, under a proposed change to the principality's planning system.

The Welsh Assembly has been told by civil service lawyers that it can restrict new homes to "local" buyers – provided it can prove that they are being priced out of the market by wealthy incomers.

If implemented, the proposals could permit planning authorities to earmark new housing solely for local people – effectively barring prospective second-home owners and retired people.

The assembly's environment, planning and countryside committee proposed the change in its review of planning policies for affordable housing and sustainable rural communities.

Areas likely to be affected include the coast between Tywyn to Porthmadog, the north and south coasts of the Lleyn peninsular and inland "hot-spots" in the Snowdonia National Park.

Minister Carwyn Jones – who is a member of the committee – pointed out that existing homes would remain open to purchase by anyone.

Jones said: "We have evidence that 60% of the houses along the coastal strip of Meirionnydd are bought by people from outside this county and Anglesey.

"The same has happened for some time in the southern coastal strip of Lleyn and the same is now happening to the northern strip.

"The newcomers are by and large retired people from areas where the average wage is very much larger than here. The result is that local people – even essential workers such as teachers and nurses – are being priced out."

The committee heard evidence from North Devon and South Shropshire councils, where housing policies favouring buyers with local connections are already in operation.

Assembly lawyers said planning authorities could apply housing restrictions, as long as they "reflect the needs of the particular locality and are as transparent as possible".

The committee's review states that in areas where there is "acute pressure" on the housing market, the assembly can empower councils to adopt "locals-only" policies for new housing.

The power will only be available in those areas where a formal housing needs assessment has been carried out, "to ensure they [are] not in conflict with human rights or other anti-discrimination legislation".

The draft review will be debated next month. The assembly cabinet is expected to give its formal response to the change within six weeks.

Source

Housing Today