Second homeowners in UK seaside town to pay double council tax

North Yorkshire County Council says move will raise £14m to tackle affordable housing crisis

People who have a second home in North Yorkshire will pay double council tax in new plans aimed at raising additional revenue and tackling affordable housing shortages, it has been announced.

North Yorkshire councillors hope the move will encourage second homeowners to sell or rent their properties to help tackle a “chronic shortage” of affordable housing in the area.

Council members on Wednesday backed the proposals to introduce a “100 per cent premium” for council tax bills on second homes “within the next two years”.

Gareth Dadd, North Yorkshire County Council deputy leader, said the policy, due to start on 1 April next year, brought him "deep pride". “I see the real challenges for real people to find affordable housing,” he said.

Half of £14m will come from second homes on the coast in popular seaside towns such as Whitby (pictured) and Runswick Bay (Getty Images/iStockphoto)

In a statement, the Conservative-run council said the changes would help to provide a “multi-million-pound boost to finance key council priorities”,  including affordable housing.

The move has been welcomed by housing bosses.

Kate Henderson, the National Housing Federation (NHF) chief executive, said: “I’m pleased to see decisive action being taken to address the housing crisis in North Yorkshire.

“There is a chronic shortage of truly affordable homes in rural areas, and where people can’t afford to live, they can’t afford to work, which ultimately damages rural growth and productivity.”

Ms Henderson added: “I’m glad to see that the revenue raised from these measures will be directed to providing the homes that communities sorely need.”

Gail Teasdale, chief executive of the Broadacres Housing Association, based in Northallerton, said: “As the only housing association with its headquarters in North Yorkshire and with the vast majority of our homes being in the county, we have a vested interest in ensuring our communities remain sustainable for future generations which means having the right mix of homes.

“By working with partners such as North Yorkshire County Council, the Yorkshire Dales and North York Moors National Park authorities we are committed to providing quality, highly energy-efficient homes that meet the needs of a range of people across North Yorkshire, whether that’s younger people, families or those with complex needs who require specialist housing and support.”

The council said its analysis showed that the move could generate in excess of £14 million a year in additional revenue.

Around half of the £14m would come from second homes on the coast in popular seaside towns such as Whitby and Runswick Bay.

According to NHF figures, there are 8,199 second homes in North Yorkshire - the highest number in the Yorkshire and Humber region.

Band D council tax for a property in Whitby is £2,116 for the 22/23 year. Under the new policy that would double to £4,232.

There were just 12 permanent residents living in the village of Staithes and 11 in Runswick Bay, councillor David Chance said. The rest of the properties in the villages were second homes or holiday lets, he added.

Council leader Carl Les, welcomed the decision in Wednesday’s meeting of the full council to pursue the council tax premium on second homes, which he claimed is a “critical tool” in helping provide more affordable housing.

He said: “Today’s decision by the full council is a major step forward to helping tackle what has been such a long-running issue that has affected communities across North Yorkshire.

“It is heartening to have support from leading organisations involved in the housing sector, and the importance of trying to provide more housing for local communities should never be overlooked.

“To ensure people can live in the places they want to is vital to ensure that these communities remain sustainable for the future, and the council tax premium is a critical tool in achieving that.”