An estate of 16 newly constructed homes in Anglesey, north Wales, has remained largely empty for over two years, with developers turning away 37 local families due to a planning restriction mandating their use as holiday homes rather than permanent residences. The construction firm behind the development is now considering an appeal to the Welsh government after its application to overturn the rule was rejected by the local council.

Since the estate's completion more than two years ago, only two of the 14 available three-bedroom properties have been sold. Prices have been reduced multiple times, most recently to £250,000, but the occupancy restriction continues to deter permanent buyers. The developer, Parc Delfryn, has stated that the current market conditions and tax changes on second homes have led to a slump in demand for holiday accommodations.

The restriction, initially imposed in 2007, was not an issue for the first phase of the development, which saw 20 properties completed and sold quickly in 2022. However, subsequent local opposition to a lack of residential housing, combined with changes to tax rules for second homes, has impacted sales.

Second homes in the area are now subject to a 100% council tax premium unless they are registered as holiday lets and rented out for at least 182 days a year. This has made properties designated solely for holiday use less attractive.

Marketing agents for the developer noted that at least 37 families who inquired about purchasing the homes as full-time residences were turned away. A planning agent indicated that the owner would be amenable to conditions restricting sales to individuals with ties to the island, but the council's refusal was based on the grounds that the change was not justified and insufficient information was provided to demonstrate that it would not negatively impact the Welsh language, which is widely spoken in the region.

An assessment by estate agents Dafydd Hardy and Beresford Adams questioned the practice of leaving "valuable housing stock lying idle" when there is a recognized need for family housing. They concluded that marketing efforts had yielded minimal results, indicating a weak market for second or holiday homes in the area.

The developer is expected to appeal the council's decision to the Planning and Environment Decisions Wales (PEDW), a body under the Welsh Government.