Hitting homes

The Government denies waging a war on second-home owners but it is hard to see a succession of recent decisions as anything other than a concerted attempt to make people sell up. As we disclosed yesterday, nearly half of all local authorities in England will charge double council tax on second homes from next year.

Their power to do so was granted under new rules introduced by Michael Gove, the Housing Secretary, and will be exploited by at least 153 town halls, affecting around 130,000 homes. The charge will raise at least £215million and lead to owners paying thousands of pounds extra a year in tax.

Mr Gove introduced the plans at the behest of councils and MPS who said that second homes were pushing up house prices in holiday areas, pricing local people out of the market. But they also bring investment and money to seaside and rural communities. If they are vacated will they suddenly become affordable for local people?

This latest blow follows decisions in the Budget to remove the tax relief from those who run short-term holiday lets such as Airbnb and scrap stamp duty discounts. New regulations also mean that people wishing to rent out wa short-term holiday home for more than 90 days a year will need planning permission for the first time.

Sir Iain Duncan Smith, the former Tory leader, said the measures “will just get people angry and annoyed… we should not be attacking those people who have worked hard and tried hard”. Indeed not. But it is evidently the Government’s intention to push second-home owners to sell up since capital gains tax was eased in the Budget to act as an incentive. Second-home ownership will soon become the preserve of the wealthy and do little to help ease the housing crisis for young buyers.