Pembrokeshire Council Reduces Second-Home Tax After Tourism Concerns

Local authority responds to pressure from tourism and housing stakeholders

Pembrokeshire County Council has voted to reduce the council tax premium on second homes, reversing part of the increase introduced earlier this year.

The premium — initially tripled from the baseline rate to curb holiday-home speculation — has now been cut from 200% to 150% following debate among councillors.

Council members expressed concerns that the higher rate was deterring investment in the local tourism industry, which remains vital, particularly in coastal towns like Tenby and Saundersfoot.

Supporters of the reduction argued that while the premium is an important tool for managing the housing market, too steep an increase could negatively impact local businesses that depend on holiday lets and visitor accommodation. Opponents warned about the implications for long-term residents facing rising housing costs.

The move reflects ongoing tensions in many Welsh coastal counties around balancing tourism, housing affordability, and community sustainability — an issue that remains high on the agenda as Pembrokeshire heads into 2026.