The owner of six loss-making holiday lets near the Pembrokeshire coast wants permission to turn them into full-time homes after being hit with ‘second homes’ tax bills of more than £2,000 a month.

In an application to the Pembrokeshire Coast National Park Authority, Mr M Gregory, through Worcestershire-based agent The Rural Planning Co, is seeking permission for a change of use of six self-catering holiday units to full-time residential use at Talbenny Hall Holiday Cottages, Talbenny, near Haverfordwest.

The application is supported by local community council The Havens.

The properties are one-bedroom homes Tree Cottage, Bywthn Bach, Buzzard and Abaty, plus three-bedroom Ruffin and two-bedroom Sands.

A supporting statement says the cottages were converted from farm buildings after national park approval in late 1992 for holiday letting only.

The statement says Mr Gregory bought Talbenny Hall Cottages in September 2022 and listed the self-catering units with ‘Sykes Holiday Cottages’ and ‘Coastal Cottages’.

The statement says the business “very quickly became completely financially unviable to operate as a holiday cottage lettings business and is now operating at a loss”.

“In addition to the seasonal-related challenges of coastal holiday accommodation (reliable bookings only being made during the spring and summer seasons with very little interest during the colder and wetter months), from April 1, 2023, the Validation Office Agency (VOA) re-classified the subject holiday cottages as ‘second homes’ rather than as a holiday lettings business.

“That is, despite the holiday cottages operating as a genuine holiday lettings business and having never been used as ‘second homes’.”

The statement added: “Despite the applicant appealing the VOA’s re-classification on the basis that the holiday cottages are not ‘second homes’ and never have been, the appeal was unsuccessful. This judgement saw the holiday lettings business plunge into a loss-making spiral which has continued to the present day.

“Indeed, having originally paid monthly business rates of £54.90 per month for the holiday lettings business, the VOA’s re-classification of the holiday cottages to ‘second homes’ introduced council tax payments exceeding £2,000 per month.

“This has left business overheads and the ‘second homes’ council tax payments far exceeding any revenue generated by the holiday lettings business.”

A viability report says the business made net losses of more than £30,000 in 2023-24 and more than £50,000 in 2024-25.

The proposal includes a contribution towards off-site affordable housing worth 20 per cent of the properties’ value.

The application will be considered at a later date.

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Pembrokeshire County Council’s Cabinet backed retaining a 125 per cent premium on second homes, with most of the income funding affordable housing and sustainable local communities.