Wales has raised property taxes for landlords by 1% today (11 December), in line with earlier moves in England and Scotland.

The Welsh government said land transaction taxes on higher residential rate deals, which are imposed on second homes, will go up by 1% across all price bands.

This moves the tax for second homes to these new levels:

• Zero to £180,000 – 5%
• More than £180,000 to £250,000 – 8.5%
• More than £250,000 to £400,000 – 10%
• More than £400,000 to £750,000 – 12.5%
• More than £750,000 to £1.5m – £15%
• Above £1.5m – 17%

Welsh finance minister Mark Drakeford said the measure would raise an additional £7m in 2025-2026.

No changes have been made to land transaction taxes for main residential homes.

Overall, the Welsh government expects land transaction tax to raise £338m in 2025-2026.

Drakeford said the “Budget offers a real opportunity to start to rebuild and reinvigorate our public services.

“It delivers increases to all departments and a significant boost in capital funding, meaning more investment in the very fabric of our nation – in our school and NHS estate, in housing and in public infrastructure”.

In housing, Drakeford also set out an extra £81m to build more homes for social rent as well as £3.7m to accelerate planning decisions and digitise planning services.

National Residential Landlords Association chief executive Ben Beadle said: “This move by the Welsh government will do nothing to help renters who are already struggling to find a home to rent.

“To discourage investment in the market with punitive taxation, at a time when Wales needs many more homes for rent, is a frankly baffling move.”

Propertymark policy and campaigns 0fficer Tim Thomas added: “Propertymark is disappointed that land transaction tax for additional properties has increased by 1%.

“The investment in affordable and social homes is welcome, but until social housing supply keeps up with demand, we called for the surcharge on additional properties to be cut to stimulate supply in the private rented sector.”

Earlier this month, the Scottish government raised its additional dwelling supplement would go up to 8% from 6%, while in the October UK Budget, Chancellor Rachel Reeves also increased the stamp duty surcharge on second homes from 3% to 5%.