Entrepreneurs with a second home in the United Kingdom are likely to be hit in the pocket with more tax.
The government is poised to hand local authorities the power to double council tax on second homes, in England, as early as 2025.
Policy on trial in Wales
Labour has introduced the policy in Wales and a quarter of English councils have voted in favour of the idea that will bring hundreds of millions of pounds into civic coffers.
Councils say they will use the money to help finance the building of affordable homes for the people in a questionable scheme.
The “hollowing out” of home towns.
The idea is to prevent the so-called “hollowing out” of small communities in rural England from Devon and Dorset to Cornwall.
At the heart of the problem, is the fact that the UK simply hasn’t built enough houses in the last 30 years. The pull of growing demand has sent prices skyrocketing.
Working people forced to live away
On top of this, rich people from the big cities have poured money into buying seaside and riverside homes in the last three decades, leaving prices in these areas at a premium..
It means working people who have lived in attractive beauty spots in England for generations complain they can’t afford a home in the town or village where they were born. Youngsters are often forced to live far from their families and jobs.
The issue has prompted heavy discussion on social media.
“I cannot stand second home ownership, it is destroying communities. Either come and live here or holiday in a hotel or guest house,” says Stephanie Bailey, who lives on the coast in Devon.
If you can’t afford to live here – move !
“Who ever said being a local gave anyone a right to a home? It doesn’t, we have a thing called freedom of movement in the UK. If you can’t afford to live in one place, then move to somewhere where you can! “ replies Ian Hughes.
There is also a political angle. Cornwall is a stronghold of the ruling Conservative party and returns MPs in six safe seats. Here there is growing anger about the purchase of second homes that people complain are turning their areas into ghost towns.
Double the tax and bring millions.
If Cornwall were to double the council tax on the estimated 13,000 weekend homes in the county it could raise up to £25 million for the council.
How practical pouring those millions into building new,affordable, houses is another question. Construction is becoming ever more expensive and planning permission takes an age – objections to building near beauty spots are many and hold up the process.
”I don’t think it will deter.”
Plus, cash strapped councils have a tendency to absorb its income into other budgets.
Besides, would doubling the council tax really stop people from buying second homes?
“I don’t think it will deter people. I think all it could do is to make people go for something less expensive,” says Sophie Dear, who owns a second home by the sea in Broadstairs, Kent.
