The Welsh government has increased its equivalent of stamp duty on second homes by 1%.

The change means second homebuyers now have to pay a surcharge of 4%, up from 3%.

People could now pay up to 16% for homes worth up to £1.6m.

The increase to the Land Transaction Tax surcharge will raise an estimated £13m, which will be spent on social housing.

At the same time there’s been a 50% increase in the nil-rate band for non-residential (or mixed) transactions from £0-£150,000 to £0-£225,000.

Sean Randall, a partner at law firm Blick Rothenberg, said: “the measures are a proportionate response to the effect of the pandemic in Wales.

“Pressure will now be on the UK government to pass similar measures.”

IDX Real Estate