Plans to convert tourist accommodation near Brecon into affordable homes have been thrown out Powys county planners.

In June, Mr and Mrs Hopkins submitted a planning application to Powys County Council. They wanted to convert three holiday chalets and a manager’s accommodation off the A438 between Bronllys and Pont Ithel into four permanent affordable homes.

Of the four properties, three have two bedrooms and one has three bedrooms.

Planning agent Sam Organ explained that the move had been prompted by changes of Welsh Government policy around the taxation of self-catering accommodation.

In 2023, a new tax came into force stating that holiday properties must be available to let for 252 days a year and used for at least 182 days.

The properties at Beacons Edge had fallen short of the threshold to qualify for business rates, having only achieved a maximum of 156 letting days.

Mr Organ said “As a result, the Valuation Office Agency removed the business from the non-domestic rating list on April 1, 2023, and the properties are now subject to domestic Council Tax.

“The annual Council Tax liability across the four units is now £10,433.88, a dramatic increase from the previous £372.99 a year in business rates, making the holiday letting model unviable.”

While Beacons Edge is outside a “formally” defined settlement boundary, the site is close to both Bronllys and Pont Ithel.

Mr Organ believed that as the site is near “Talgarth, Bronllys, and Brecon – all of which offer services, schools, and employment – this makes it ideally situated for households with a strong local connection.”

However, county planners refused the application on three points.

Head of Planning and Regulatory Services Gwilym Davies said: “The grounds for the council’s decision to refuse permission for the development are insufficient information has been submitted to support the principle of the loss of the tourism assets, or the proposed affordable housing.

“As such the proposal fails to accord with policies.

“Insufficient information has been submitted to demonstrate that the proposed affordable housing is of suitable quality to meet the Welsh Development Quality Requirements.

“As such the proposal fails to accord with the Powys LDP (Local Development Plan) policies.”

Mr Davies continued: “The proposed development fails to demonstrate that it would not cause further deterioration of the River Wye SAC in terms of phosphate input contrary to policies in the LDP.”

The Welsh Government is currently conducting a consultation on new proposals have been suggested to adjust the way tax rules for self-catering holiday let owners are applied.

The Welsh Government is seeking views on two key changes to the way the rules are applied, to give the sector extra stability.

These are:

• Allowing holiday let owners to use an average of 182 days let over several years.

• Allowing up to 14 days of free holidays donated to charity to count towards the 182-day target.

The consultation runs until November 20.