What disincentives could discourage people from buying second homes?

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What disincentives would work to stop people buying second homes?

Inspired by a different thread. It seems a number of people share my abhorrent of second homes.

I have seen the place I grew up turned into a ghost village by selfish idiots buying second homes. Now there is no local shop, no local school, no doctors surgery, no pub, no busses nothing. There were not enough people using them consistently for them to make money.

So what would make people stop killing local communities. Financial penalties I guess but how high? Wales has introduced a 100% local tax increase on second homes but it doesn't seem to be enough.

Maybe a law that says any property must be inhabited 6 months a year or suffer a penalty? That might at least make people split their time and contribute to the community? Empty or near empty properties are shameful when there's a housing shortage, which forces us to destroy more natural habitat to build more houses.

Locals could stop selling the houses to them.

Alternatively ramp up stamp duty and council tax even further

I'm not sure disincentives are what's needed- by definition second home owners are rich so financial disincentives have limited use, and the idea of authoritarian rules about who is allowed to live where is abhorrent.

The solution is more fundamental- investment in infrastructure in the regions and incentives for businesses to be based throughout the country, not just in cities (and London in particular). If we want thriving villages, we need good employment opportunities throughout the country rather than concentrated in a few smaller areas. Simply removing the second home owners won't bring back local schools and buses if there aren't opportunities locally for the people who might live in those houses instead. You just end up with properties standing empty.

I have seen it in action where we live in rural Suffolk- the energy coast. There is a huge amount of money being spent on infrastructure and energy assets, which has brought great employment opportunities across a wide range of roles, which in turn means opportunities for businesses serving those people- a virtuous circle. This is in part of the country where we've previously had lots of issues with loss of services due to both second home owners and abandoned houses, because there simply weren't jobs for people to do outside farming/casual labouring.

Quadruple council tax, proceeds of which are pumped into the community

Yeah but you would need everyone in a chain to agree to that which will never happen.

Would you be happy to give a 50 - 100k discount when selling your house?

There are areas that have banned second home ownership. It really does need a centralised approach. There is also the issue in big cities of overseas investors buying up loads of properties. I would ban non-dom's from buying new properties. Anyone who emigrated should be able to keep their property.

A non residents service levy that could be redistribute locally via a council tax/business rates reduction.

The problem is it would probably still not stop rich people. The only way would be to somehow ban simultaneous ownership of two or more properties or something.

If you’re a local and happy to accept an over inflated price from a second home owner, you can’t then moan about locals being priced out of the market when you’ve benefited considerably!
Thinking about Cornwall in particular- who sold their properties to second home owners?? Could it possibly be locals?

I think that would be too difficult to monitor.

I think it would have to be something like increased stamp duty and council tax.

There are two sorts of homes which cause problems in my community.

Second homes owned by individuals who only use them for themselves/friends, and then AirBnB style places which are let out and typically have people staying more often (but usually empty most of the winter).

Both types cause similar issues, but the ones which are occupied more often at least do support some local services, such as shops and restaurants. Neither type supports vital services like healthcare, education, care homes etc, and actually actively harm them due to pushing up prices for local workers and decreasing the availability of long term lets. Both types actively harm community cohesion too.

I would ban them in any area where:

• people doing critical roles in healthcare/education are unable to take up these roles due to housing pressures
• house prices are too high for two people doing locally based jobs (a formula based on two median incomes vs starter house price)

In other areas I would cap second homes at 5% of total housing stock AND stipulate a minimum annual occupancy.

I'd allow a period of grace for people who inherit the home of a deceased relative, to allow them to decide whether to sell, move in, or keep as a high occupancy second home if there is spare capacity in their area.

I think homes should have e a legal classification of a primary residence only and be occupied by living and working there - including no houses in spouse names

There should be specific classification for holidays homes like lodges on designated sites that do not detract from local residential housing stock. These would also protect buyers from scam holiday park home schemes

Maybe having to pay a hefty monthly housing tax to the local authority, which goes towards funding permanent housing for local people. That sum would only be offset if it was rented out at full capacity. That wouldn't deter extremely rich people from having second properties, but it would at least mean that they were contributing to the local area via the housing tax. And it would deter people from buying a house for holiday let income.

No, only the person selling the house decides who can buy it. The other people in the chain don't get a say in it and wouldn't even know anyway.

This is a good idea.

I like the justice of people paying for supporting the community they are damaging but I doubt the council would subsidise things like the local shop.

Maybe the council could reduce rates for the local businesses with the funds 🤔

How an earth do you police that?

I don’t agree with second homes either but freely use Airbnbs. Would you suggest that people don’t holiday in the UK?
Village shops and activities are declining anyway. People shop online because it is more convenient and usually cheaper. Activities used to be staffed by empty nesters who are now busy looking after their grandchildren.

There are also lots of locals that welcome the home counties buying second homes.

Yes but you need enough to buy another local property and if others are inflating their prices and happy to sell to second home owners then you need to be able to complete against them.

You need house price inflation to stop dead, so that people don't see property as a good investment. That might have wider consequences though!

Sink holes.
Earthquakes
Sellafield meltdown
Riots
Antisocial behaviour

This has already happened in the south.

It’s kind of radical but Î’d ban second home owning and airbnb. Ok to own a second property if you rent it out long term. Ok for holday rentals of your own home ( that you live in the rest of the time)

Oooo! Let's ban non-Londoners from buying in London!