Second Home owners doing sad faces in the press about council tax increase

[CornishTickler]

Just read an article online about the second home council tax increase and there are couples with sad faces saying it was without warning and is against their human rights! It wasn't, its been in the press and talked about by councils for over a year. It wasn't a surprise, areas with high levels of second homes knew it was coming.

I for one am glad about the tax. Our village has been destroyed by second home owners for years. A lot are badly maintained and empty for 80% of the year.

The argument that they bring extra income is also misleading. Most true second home owners who only visit a couple of times a year don't contribute much to the economy but are very vocal in interfering in local issues to the detriment of actual residents. One example (I'm not joking on this) was to oppose the planning of a local business that would benefit the community with jobs and tax revenue because of the endangered newts! luckily common sense prevailed but honestly they got very vocal and aggressive about it. It was mainly because they didn't want it to impact their second home.

Holiday makers bring revenue. Absentee second home owners do not.

Hopefully the second home tax increase will increase council tax revenue and help to support our community and vulnerable people.

Yes, both are equally part of the problem but you seem to be lacking the same derision to those who sell as to second home owners. Perhaps the sellers need a financial penalty as well?

The situation is different in London where much second home ownership is from developers selling offplan to overseas investors, before the property has even made it into the local market.

90% of council budget is spent on statutory services, primarily social care for both children and adults.

The rest goes to the frills and fripperies like libraries, parks, swimming pools etc.

People are incredibly ignorant about what councils spend money on.

In what way is it not a business. Just because you don't perceive it to be one because of your reasons doesn't mean it's not. You're still transacting for money.

That's the problem with these things. Everyone has a reason why they shouldn't pay.

I don’t disagree with your figures but describing libraries and swimming pools as frills and fripperies is a bit off.

I live in an area blighted by holiday homes but I’m not interested in ‘ire’ or blame.

I just want pragmatic, fair solutions that will free up under used homes for growing families and people who want to take up employment in the area but cannot find a place to live in.

Currently, businesses struggle to recruit skilled workers from out of the area due to the severity of the housing shortage. Hospitality businesses cannot recruit enough because workers cannot live in.

I think the poster is being ironic.

Ime, not in England. The double council tax applies after I think 3 months, regardless of whether the property is up for sale.

Agree.
80% of Devon’s budget is spent on adult care.

We have a home in Wales used for holidays and I’m fine with the tax. I don’t think it’s going to magically make houses more affordable for locals, though. The main problem where we bought is getting mortgages on seasonal MW jobs.

Oops! 😬 my bad.

That was my point.

They're not statutory services but reduced council budgets mean that parks and pools are now luxuries.

Councils are not in the business of "vanity projects" when even providing a library is something unnecessary that is perpetually in line to be cut.

Premier Inn?

Right, got you - yes, agree. Head full of cold today, that’s my excuse!

I am not against increased tax on second homes. But I think it is naive to assume some of the recent changes are going to overall have a positive impact on the communities concerned.

If you look at Wales where this started in the UK, the locals are all impacted by reductions in house values and the change has impacted locals with extra space in an annex or cottage on family farm land that they use to generate additional (needed) income. The second homes flooding the market tend not to be the types of housing that locals struggling to get on the housing ladder can or want to buy. I'd be interested to see an analysis of the overall impact in a few years' time as I would prefer these kinds of decisions to be based on economic analysis and not just politics.

For me there is definitely a distinction to be made between a) properties that are “true” second homes (not let out as holiday homes) and those that are holiday lets and also (b) areas that are in locations (eg Cornish and Welsh coasts) that are built around tourism, as opposed to those that are picturesque but in locations within easy reach of large towns and cities with a whole range of industries and job opportunities - such as the Cotswolds and London(!). Largely empty second homes and any second properties in the latter type of location should absolutely be discouraged through additional taxes/regulations .

But there are certain regions, Cornish coastal villages, as an example, that have become thriving and well maintained because of tourism - people want to visit and retire there not just for the amazing scenery but also because of the fantastic restaurants, cultural offerings, shops etc. None of those things would be there if tourists did not come and spend money on them, it’s a symbiotic relationship that has developed over decades. Prior to which, the region’s industries would be fishing and mining, mostly long gone. What is happening now is that the property owners are facing higher costs and passing these on to holidaymakers, making the cost of coming prohibitive - bookings are down massively in the last year or so - impacting local businesses, not just shops and restaurants but rental agents, cleaners, builders etc. Also loads of properties are for sale and not moving - as a PP said, prices are not within reach of locals, even if the properties appeal, which often they don’t, being impractical for full time family living (not many families want a two up two down fisherman’s cottage with no garden or parking and far from local transport). In areas like these, the additional taxes create a lose lose.

I think locals in areas such as Cornwall should consider that if they were locals from other areas of the country that were previously mining towns/industrial areas - eg South Wales valleys - then they would have plenty of affordable housing but none of the opportunities that tourism provides with regard to ways to make a living.

I don't agree its a red herring. In the areas of the West Country that I know best the vast majority of "non resident" homes and AirBnBs are locally owned (from local government stats on registered owners). Many are former tied cottages still belonging to the landowning families which once provided local housing before deregulation of the agricultural labour market in the 80s (which not only cost housing but for many it meant the loss of regular income needed for mortgage or tenancy agreements).

Many more are "gran's house" kept by local families to make a few quid in the season and to keep as a long term growth asset. In both cases they capitalise on the main tourist season but spend most of the late Autumn to early Spring empty. In some cases I know the local owners are also complaining that their kids can't get on the housing ladder 🙄

In terms of local community participation, pupil numbers in village schools etc these locally owned holiday homes are little better than the proverbial second home empty for 40 weeks a year. Commercially second home owners already contribute financially - they pay full or double tax and scarcely use the services. Both second homes and holiday homes are not new and this argument has been going on since long before the housing crisis.

I suspect the second home tax will make limited difference overall to true second home owners who in most areas are a minority. Some will sell up but most will have factored this into run costs and capital growth. The real issue in most rural areas is the same as always - employment. People have moved for work and affordability forever and that won't change because a small number of home owners sell up due to extra tax on what is already a luxury product.

The other problem is catering for variation. The extra tax is a very blunt instrument for a problem which is hugely variable and much more complex than "Londoners buying our houses".
Its clear that there are villages which are empty in winter in some areas because they are by the proverbial pretty beach but most places are not Rock-Malibu and emptiness results more from lack of good employment opportunities which enable people to get a mortgage. Without the good employment people will still not get on the property ladder, with good employment in most area its possible to compete with outside interests. For Cornwall specifically better transport links would make a lot more difference than a few extra grand a year on second homes.

And there speaks the problem.

Property prices are based on supply and demand. Locals can't afford to buy because of their low salaries and people from outside can outbid them and cheerfully pay double tax.

No-one should have 2 homes until everyone has one.

You’re right, there is a business transaction taking place but I don’t make money, quite the opposite, I rent it out when possible and friends and family stay. I do not make a profit. I did not say I object to the increased CT, I don’t and I have paid it. I am a Londoner born and bred and no one cares when we are priced out and surrounded by people who just come here for their own benefit.

My heart bleeds for them.

Not being able to afford to buy your first home is a nationwide problem. In our village a 2 bedroom terrace is 450k. You need to earn a 100k+ and have a sizeable deposit.

You are missing the point I think. Locals on MW zero hours jobs will still not be able to buy - employment is the issue first and foremost which opened up the market to second home owners from other areas.

I have every sympathy for Londoners especially in terms of housing and where it's the ordinary workers in the support sectors whose salaries are fixed.

That said, just because you've been priced out doesn't mean it's right for it to happen elsewhere.

No, I see the point. I just disagree with you.

If noone was allowed to buy a second home, property prices would drop to the point that they could be afforded locally.

As long as you can buy a second home, you are part of the problem pushing prices up.

Is this new? My borough has been taxing them heavily for some time.
There's also no empty home exemption, which folks are always aurprised/offended by. Our exemption list is quite restricted.

If no one was allowed to own any kind of second home at all, there would be no rental properties available, is that desirable?