A PROPOSED tax on ‘land banking’ – when developers speculatively buy land without plans to build on it – could discourage large house builders from investing in Wales, a Gwent AM has said.

The vacant land tax is among a list of four new rates which could be introduced in Wales when powers over taxation are devolved in April next year.

But, speaking during First Minister’s Questions this afternoon, South Wales East AM Mohammad Asghar said he was concerned about the impact on investment in Wales.

“Last year the Home Builders Federation stated that poor planning and the higher costs associated with building homes in Wales have compromised investment,” he said.

“Now, house builders express concern that the lack of detail over the potential new tax on vacant development land could further discourage larger developers from investing in Wales.

“Does the first minister agree that increasing the burden of tax and regulation on housebuilders will not increase the supply of new homes that Wales desperately needs at this moment?”

Carwyn Jones replied: “We look to strike a balance between appropriate regulation and encouraging housebuilding.

“We've done it with the social housing grant, we've made sure that we are not losing council houses through them being sold to make sure that they're kept in the public housing stock.

“We've made sure, as well, of course, that, through Help to Buy Wales, there are options open for people to buy houses that they otherwise wouldn't have the option to do.

“So, we have a good record when it comes to housing, and we are on track to meet our target.”

The Welsh Government has committed to building 20,000 new affordable homes during the current Assembly term.