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After councillors voted to change planning rules, property owners have lost the right to choose whether to treat homes as short-let holiday rentals or second homes.
The landmark ruling comes into force in Gwynedd, North Wales, which covers miles of famous beaches and the Snowdonia National Park.
Councillors argue too many local homes have changed to holiday lets or second homes, making property unaffordable for people living locally.
Gwynedd is the first council to change planning rules to curb the spread of investment properties.
From September 1 (2024), property owners must apply for planning permission to:
Owners do not need planning permission to make a holiday let or second home their main home.
The new rules require planners to consider the number of second homes and holiday lets in a neighbourhood before granting permission for similar properties.
The latest Welsh Government housing statistics show 4,720 homes in Gwynedd paid council tax as second homes or holiday lets in the county during 2022-23.
Homeowners who can show their properties were used as holiday lets or second homes before the September 1 deadline do not need to apply for change-of-use approval.
Some homeowners are concerned that the planning restrictions will impact house prices in Gwiynedd, pushing down the value of investment property.