A new housing development on the island of Anglesey in Wales faces a significant sales slump, with 14 completed homes remaining unsold for years. The issue stems from an occupancy restriction that limits sales to individuals with a specific connection to the island, making them unattractive to the broader market.
Despite substantial price reductions over two and a half years, the properties at Parc Delfryn have seen only two sales. According to planning documents, the owner is willing to accept a restriction limiting sales to those from Anglesey or with a demonstrable link to the island. However, this restriction has rendered the homes unmarketable for their intended use as second residences.
In contrast, at least 37 families, many of whom are local to Anglesey, have expressed interest in purchasing these properties as full-time residences. The planning report highlights that these modern family homes are ready for occupation but are unattractive in the market due to the restricted occupancy clause.
This situation arises as Anglesey grapples with a housing shortage. In late 2023, approximately 10% of the island's housing stock was classified as second or holiday homes, a figure higher than in other parts of Wales and the UK. In June 2023, the BBC reported that Anglesey had experienced the most significant increase in holiday home usage in England and Wales over the preceding decade. In 2022, Welsh authorities announced that some second home owners could face council tax increases of up to four times their current rate starting in 2023, as a measure to improve housing affordability for local residents. Currently, second home owners on Anglesey pay 200% council tax, unless the property is rented out for at least 182 days a year.
The impending arrival of a nuclear power station on Anglesey, projected to create up to 3,000 jobs, is expected to further strain the local housing market. Experts predict this will exacerbate the imbalance between employment opportunities and housing availability, potentially leading to increased long-distance commuting if not adequately addressed.
Estate agents Beresford Adam and Dafydd Hardy noted that Parc Delfryn is not an isolated case. They stated that many new developments designated for second homes in the area have attracted minimal interest, leaving completed units vacant. Anglesey Council confirmed that the application regarding the Parc Delfryn development was under consideration as of July 24. A spokesperson for the Welsh government declined to comment on the matter.