Wales could face a tourist crisis in some of its seaside towns after the number of second homes up for sale in one county surged following a 200 percent council tax increase.

New rules were brought in by the Welsh government in a bid to make it easier for people to make housing more afforable for people who want to settle down in the area they grew up in.

Local authorities were given powers to charge a premium of up to 300 percent in addition to the normal council tax rate for those who own a second home in the country.

Estate agents told BBC Wales they were seeing a big impact from the council tax change, especially in the country's most popular seaside areas.

Figures obtained by the news outlet revealed that in July were 135 homes on the market in the southwest county of Pembrokeshire - where a 200 percent premium was introduced in April - more than triple the 38 seen last year.

Property owners can avoid having to pay the premium for up to a year by putting their houses on the market.

Council figures showed 3,271 properties are now registered as second homes, a decrease from 3,364 in 2023. Those listed as self-catering holiday units have also dropped to 2,425 from 2,621 last year.

One estate agent told the BBC they were seeing the highest rate of homes being put up for sale in decades and it's having a negative impact particularly in areas like Newport and St Davids.

Neil Evans, the owner of West Wales Properties estate agents said: "We're seeing properties come on the market at such a volume that I've never seen in 30 years.

"Second home owners can purchase a property on the other side of the Severn Bridge and have none of this. I think what we're finding generally is that it's affected the holiday trade as well."

Emma Downey, owner of Tides Kitchen and Wine Bar in Newport said the town had seen visitor numbers fall over the summer.

Speaking to BBC Radio Wales Breakfast, she said: "People who have second homes here are desperately angry at the charges they're now facing, and a lot of them simply are putting them on the market because they’ve had enough."

She argued that a mixture of local people, tourists and second home owners was needed for local businesses to be successful.

But housing market reform campaigner Hedd Ladd Lewis said the uptick in second homes on sale was "encouraging", though he questioned whether they would be affordable for local people.

"What we have is an open market and local people who earn wages - on average around £28,000 a year - will not be able to compete [for houses]," he said.

Mr Ladd Lewis lives in Newport, one of Wales most popular tourist destinations, where 30 percent of the properties are holiday lets or second homes.

He added: "There is a huge injustice when it comes to the housing market and we need to see some sort of property act which will ensure that the local community has a legal right to a house."

Pembrokeshire County Council has been approached for comment.