Many businesses in the Pembrokeshire town of Tenby welcomed the decision.
Becky Munn, who has been running her shop Cariads since September, described the 200% as “incredibly high” and said she had seen a “huge increase” in properties that are second homes going up for sale as a result.
Owners could avoid paying the premium for up to a year by putting their homes up for sale, which many chose to do as second homes for sale in Pembrokeshire have trebled since 2023.
“The less properties that are available for people to come and visit the area, it takes away the opportunity for people to spend money in the area,” she said.
Ms Munn, who lives in Milford Haven, said she would like to live in Tenby to be nearer her business but could not afford a family home in the area.
As a local person, and business owner, she said it feels like a “Catch-22 situation”.
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