The number of second homes for sale in Pembrokeshire has tripled since the local council introduced a 200% council tax premium, new figures reveal.

In July, 135 second homes were on the market, a sharp rise from 38 the previous year. Estate agents say the surge in listings marks the highest rate of sales this century, with some warning of negative effects on the region’s vital tourism industry.

The increase follows new rules aimed at addressing housing affordability in Wales, particularly in popular coastal areas. The Welsh Government granted local authorities the power to charge up to 300% more in council tax on second homes in an effort to help locals purchase homes in their communities.

In Pembrokeshire, the introduction of the 200% premium in April has caused bills to triple for second-home owners, prompting many to sell. Owners are able to avoid paying the premium for up to a year by listing their properties on the market, contributing to the sharp rise in available homes.

The issue has become particularly contentious in beauty spots like Newport, where 30% of properties are second homes. Campaigners have long called for further reforms, including legal measures to give local residents priority when purchasing homes.

“There is a huge injustice when it comes to the housing market,” said Hedd Ladd Lewis, a housing campaigner from Newport. He questioned whether local people, with an average income of £28,000, could afford the rising house prices. “We need a property act to ensure the local community has a legal right to a house.”

While some residents welcome the policy, others in the tourism industry are voicing concerns. Neil Evans, owner of West Wales Properties estate agents, said the tax premium has had a “huge impact” in towns like St Davids and Newport.

“We’re seeing properties come on the market at a volume I’ve never seen in 30 years,” Evans said. “It’s also affecting the holiday trade.”

Business owners have noted a downturn in visitors over the summer months. Emma Downey, owner of Tides Kitchen and Wine Bar in Newport, said many second-home owners are leaving, frustrated by the tax increase.

“Visitor numbers have fallen, and people with second homes are angry,” Downey said. “We need a mixture of locals, holidaymakers, and second-home owners to run our businesses successfully.”

Meanwhile, some local councillors are calling for alternative solutions. Aled Thomas, a Conservative councillor who opposes the tax premium, said the policy is hurting the local economy. “Tourism brings money into the economy, but people are going out of business because of these policies. What we really need to do is build more homes,” he said.

In contrast, Cyngor Gwynedd, another local authority, has taken an even stronger stance, imposing a 250% council tax premium on second homes and introducing planning restrictions for new holiday properties. Other counties, such as Anglesey and Conwy, charge 100% premiums, while Ceredigion plans to increase its rate to 150% by 2025.

Despite the rise in homes for sale, it remains unclear whether local residents will be able to afford them, even as the number of second homes across the county slowly declines. Pembrokeshire currently has 3,271 registered second homes, down slightly from 3,364 last year. Properties listed as self-catering holiday units have also dropped, from 2,621 to 2,425.

As the debate continues, some warn of the unintended consequences of the new tax regime. “What we certainly don’t want are homes sitting empty,” Downey said. “That’s not going to help anyone.”