SECOND HOMES CRISIS NOW AT ‘TIPPING POINT’
TACKLING second homes and holiday lets is an issue that has divided opinion in Wales in recent years. Over the past few months, the Welsh Government has announced plans to crack down on second homes, which will come into force next year.
Their plans include an increase to the maximum level of council tax premiums for second homes, as well as new local tax rules for holiday lets.
The maximum level at which local authorities can set council tax premiums on second homes and long-term empty properties will be increased to 300%, effective from April 2023.
On top of this, there will be stricter rules for holiday homes that are exempt from council tax.
Currently any holiday house that is let out for more than 70 days a year – and is available to be let out for more than 140 days a year – can pay business rates instead of council tax.
Under the new rules holiday homes will have to be let out for more than 182 days a year and be available for let for upwards of 252 days a year to qualify for the exemption.
But it seems that an increase in second homes is having a devastating impact on some communities in England, leaving some areas sparsely populated for much of the year.
Recently, councils in areas such as Whitby in Yorkshire and Brighton in East Sussex have announced their proposed plans on tackling the issue.
The UK Government has also announced a review into short-term accommodation in England.
The review will look at the market, as well as the opportunities and challenges presented for consumers and tourism communities.
The statement announcing the launch of the review also acknowledged that steps in regards to the issue had already been taken by the “devolved administrations” of Scotland, Northern Ireland and Wales.
According to the Government, Airbnb listing data showed a 33% increase in UK listings between 2017 and 2018. Although an Airbnb report in 2018 revealed that a typical UK host on their platform earns an average of £3,100 a year, the Government said that it understood “there can be an impact on housing supply and price in these areas”. The UK Tourism Minister Nigel Huddleston said: “We want to reap the benefits of the boom in short-term holiday lets while protecting community interests and making sure England has highquality tourist accommodation.”
In mid-June, the people of Whitby in Yorkshire voted to ban new houses being used as holiday lets and second homes. The seaside town is one of the most popular tourists towns in northern England, and more than 500,000 people were said to have visited the area in the summer of last year.
In a parish vote, 2,111 people wanted all new-build and additional housing to be restricted to “full-time local occupation” as a primary residence – 93%.
Speaking following the vote, borough councillor Phil Trumper said a threebedroom house right in the heart of the tourist area would have been £25,000 to £30,000 in the early 1990s but will now sell for in excess of £500,000.
He added: “I think we’re at a tipping point. We’re losing a lot of the housing stock to holiday lets, which is driving up the prices of the properties, so it’s becoming unaffordable for young people who were born here and live here and want to work here.”
The ballot could not force through policy. Scarborough council explained that it was “no more and no less than an expression of the views of the electorate of the parish who have voted in the poll, and is not binding on any organisation”.
Last week, Brighton, on the south coast of England, said it would become the first UK city to take action against second homeowners and holiday lets. It comes after a wave of buyers during the coronavirus pandemic pushed house prices to more than £500,000.
Councillors have voted to ask officials to draw up proposals which will ban new-build second homes and holiday lets in some areas of East Sussex.
A report found that more than 3,000 properties in the city could be being used as short-term holiday lets.