But some residents of Abersoch, a village on the Llŷn Peninsula which sees about 30,000 visitors during peak summer months, said the knock-on effects from the legislation - known as Article 4 - had been tough.
They described tradespeople needing to look for work further afield and long-time visitors feeling unwelcome.
How does a tourist town look when the tourists go?
The People of Gwynedd Against Article 4 campaign group took legal action against the council, Cyngor Gwynedd, and in November 2025 Article 4 was quashed .
Cyngor Gwynedd had a request to appeal this decision rejected last month, and said it was "extremely disappointed" and considering its next steps.
Jeff Smith, from Cymdeithas yr Iaith, the Welsh language society, said "early signs" suggested house prices had fallen following the introduction of Article 4.
"This is a good thing, as it allows local people to remain in the area, in a county where 65% of the population are priced out of the housing market," he added.
Laura Alliss, 38, who lives in Abersoch, said she initially threw away a council notice about Article 4 before she said she realised it affected everyone in Gwynedd.
The two solicitors helped get a judicial review commissioned after £105,000 was raised by a fundraising group.
Enlli said her friends and family were initially "quite angry" after she put her name down as a claimant against the policy, until they came to understand its impact.
Enlli described it as a stressful time, saying she was "ecstatic" at the decision to scrap the policy, adding: "I'm proud of the community, actually.
"I think it's shown how much community there is left here.
"We can't live without the tourism here."
Llŷr Wyn Williams, 26 and from Abersoch, works for his dad's construction business and said the construction sector had been "hit the hardest" following a decrease in demand for property redevelopment.
Now, Llŷr and others from the village claim tradesmen are looking for work in different areas.
Figures published in February 2025 showed house prices in Gwynedd had fallen by more than 12% year-on-year.
But average house prices in the county had increased by 0.6% in the 12 months to December 2025, according to the ONS House Price Index .
Llŷr said policymakers misunderstood what kept Welsh‑speaking communities alive.
"If that job wasn't here with a competitive salary, I wouldn't have stayed," he said.
Llŷr said he hoped the council would now implement more "pro-business" policies.
Cyngor Gwynedd said it had provided more than £3m in funding for local companies in the past three years to help them invest for the future.
Robert Middleton, 60, has lived in Abersoch for 25 years and used to visit every summer as a child with his family.
"Ultimately it's the jobs that are being hit," he said.
He said it was "becoming tougher" for residents to make a living and believed overturning Article 4 was a "little David and Goliath moment" for campaigners.
Leigh Hookes, 52, has owned Mexican restaurant Mañana in Abersoch for 31 years and his family has lived in the village for generations.
Leigh remembers his grandfather renting his house out to holidaymakers in summer, adding: "He'd live in a little shed in the bottom of the garden with his wife and kids.
"Everyone did that in the village, that's how the village works."
He said Article 4 unfairly gave away control over "what you do with your property" and had devalued his house.
Even though the policy has been reversed, he added: "It still caused a huge effect on the housing market here and that's very, very frustrating for us."
Estate agent Rhys Elvins, 35, said Article 4 restricted the market and saw a "handful" of properties have their prices dropped, but since it was overturned he said there had been "a bit of an uplift".
But Cyngor Gwynedd councillor Craig ab Iago said Article 4 being quashed was "disappointing".
He said Cyngor Gwynedd was working on "changing the narrative around self-empowerment".
"That's what we, in the end, the thing that's going to get us out of all these crises we're in at the moment is resilient, sustainable communities," he said.
"There is a lot of negativity, especially coming from like the people of Gwynedd, which is a shame, because that's not healthy for anybody," he added.
'Vibrant and sustainable communities'
A judge ruled Cyngor Gwynedd's cabinet had not been given the full details before making their decision, and quashed Article 4.
The council's request to appeal was rejected in February of this year.
Cyngor Gwynedd said it was "extremely disappointed" with the recent Court of Appeal ruling, but remained "committed" and was "considering our next steps to achieve this aim".
Research from the council found, on average, 65.5% of Gwynedd households were being priced out of the housing market.
Jeff Smith, from Cymdeithas yr Iaith, the Welsh language society, said he was "pleased that Gwynedd is determined to introduce an Article 4 measure".
"Early signs suggest that house prices have been falling following its introduction," he added.
"This is a good thing, as it allows local people to remain in the area, in a county where 65% of the population are priced out of the housing market.
"It also sends a message to other councils that have been waiting to see the outcome of the judicial review before taking action.
"If Gwynedd proceeds even after the decision, there is no reason for other councils not to start the process of introducing it."
A spokesperson added: "We are taking radical action using the planning, property, and taxation systems to achieve this, as part of a joined-up package of solutions to a complex set of issues."
Plaid Cymru said there was a "housing crisis in Wales" and said it had outlined plans to increase the supply of social and affordable housing.
The Welsh Conservatives said the measures in Gwynedd would "instead hit the very people they should support such as local trades, small businesses and families at the heart of the community".
A Reform UK Wales spokesperson said it was "vital" for people to access housing in their communities and the best way to ensure this is to "expand supply".
The Welsh Liberal Democrats, Welsh Labour and the Welsh Green Party have been approached for comment.
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