Campaigners lobbying against new rules requiring people to get planning permission for second homes are facing a setback to their legal bids.

Cyngor Gwynedd was the first local authority to introduce what became known as the Article 4 Directive to tackle what it described as a “major housing crisis”.

This week a judge rejected a campaign group’s request for a judicial review of the decision.

The judge concluded that the council made the decision after “robust and comprehensive study”, invalidating the group’s grounds for objection.

Welsh government changes to planning regulations have introduced three new classes of use: main home, second home and short-term holiday accommodation.

Gwynedd’s decision to use these measures to control the use of homes as second homes and holiday homes It came into force in September.

Campaign group Gwynedd People Against Clause 4, which has raised more than £70,000 to launch a judicial review, said the measures would reduce the value of every property in the area and make homes harder to sell.

One group member told BBC Wales that legal advisers are “currently deciding whether they have the right to appeal” and that this must be started within seven days of the judge’s decision.

Independent councilor for Abersoch and Llanengan, John Brynmor Hughes, said he was aware of the group’s latest setback.

He opposed Article 4 and said there had been a downturn in local trade since its introduction.

“I was speaking to the owner of a takeaway earlier today and business is bad,” he said.

“People coming here now are saying: ‘If they don’t want us, why should we support them?’

“Every business in Abersoch is experiencing a downturn.”

Cyngor Gwynedd said it was aware of the judge’s decision, adding that the purchase of homes to be used as holiday homes and second homes had driven prices higher than locals could afford and also reduced the number of properties available.

Eryri National Park also plans to introduce Clause 4 in June 2025, which applies to the counties of Gwynedd and Conwy, for which it is responsible for planning.