The Welsh Government is set to promise a “three pronged approach” to tackle a second homes crisis which has plagued much of rural Wales.

Following calls from politicians, language campaigners and local authorities, Tuesday will see housing minister Julie James announce “a summer of action” including plans to shut a tax “loophole.”

Also likely to be revealed are planned changes to planning regulations and a statutory regulation scheme for holiday accommodation.

Inspired by a report compiled by Porthmadog-based academic, Dr Simon Brooks, the Welsh Government is expected to set up a pilot area where such measures can be trialled and evaluated before being considered for wider roll-out.

While many authorities have already implemented a council tax premium on second and empty homes, evidence that some are “exploiting a loophole” that allows them to avoid paying not only any council tax but also business rates, has held back all but two from charging the full 100%.

It is possible to “flip” such a property from paying domestic to non-domestic rates if it’s proven to be available for up to 140 days in a year and actually let for at least 70.

But with most self-catering holiday accommodation being eligible for Small Businesses Rates Relief, it often results in no contribution at all being made into local authority coffers.

The Welsh Government’s announcement, however, is expected to outline measures to ensure that second home owners “make a fair and effective contribution to the communities in which they buy.”

The “three pronged approach” will include:

Support – addressing affordability and availability of housing,

Regulatory framework and system– covering planning law and the introduction of a statutory registration scheme for holiday accommodation

A fairer contribution – using national and local taxation systems

The housing minister, Julie James, said ahead of her statement on Tuesday: “The continuing rise of house prices mean people, especially younger generations, can no longer afford to live in the communities they have grown up in.

“A high concentration of second homes or holiday lets can have a very detrimental impact on small communities, and in some areas could compromise the Welsh language being spoken at a community level.

“We have already taken strides on some of these issues – last year we became the only nation in the UK to give local authorities the power to introduce a 100 per cent council tax levy on second homes.

“But the urgency and gravity of this situation calls for further intervention, which means real and ambitious actions are delivered at pace, to inject fairness back into the housing system.”

Dr Simon Brooks’ report “Second Homes – Developing New Policies in Wales,” made 12 recommendations, including a trial of new planning laws that would see a new use class for second homes.

This would echo already established calls requiring planning permission to be in place before converting a main residence into a second home or short-term holiday accommodation.

Also recommended is varying the higher rates of the land transaction tax – or stamp duty – potentially adding a further rate to the tax of up to 4 per cent of the value of the second property in some parts of Wales, or devolving such decisions to the relevant local authority.

Ms James concluded, “Taking recommendations from Dr Brooks’ report, our new three-pronged approach will kick-start a summer of action which will determine how we tackle this issue now and into the future.

“I am calling on all political parties across the Senedd to get involved in this, as we look to empower our communities to exercise their right to live in good quality homes, wherever they are in Wales.”

Ahead of the announcement, Ynys Môn MS Rhun ap Iorwerth described the measures as “better late than never.”

“I’m pleased that the Government is finally finding that this is an area that needs action, having been far too slow to acknowledge that we are facing a housing crisis,” said the Plaid Cymru deputy leader.

“This is better late than never – for many years, houses in our communities are slipping further and further out of the grasp of our local population.

“There is mention here of more research and so on, but really, there is no need to delay, and while this is a step in the right direction, we must urgently take practical steps.

“I’ll do what I can to hold the Government to account on that.”

The island’s MP, Virginia Crosbie, was critical of the lack of homes built under the Welsh Labour Government’s watch, a record she described as “woeful.”

“The key question here is why has it taken so long to have a plan at all when communities are crying out for places to live?,” she said.

“Second homes are one piece of the jigsaw and it must be highlighted there are more empty homes in Wales than holiday homes – I would like to see action on that.

“The housing crisis will not be solved without more and better paid jobs, something that is offered by a Freeport.

“However, the biggest jigsaw piece in all this and the biggest failure is the lack of action for 20 years to build social and affordable homes across Wales and that’s firmly at Labour’s door.”