Council Reaffirms Commitment to Spending Second Homes Tax Revenue on Housing Projects

North Yorkshire Council has reiterated its pledge to utilise the revenue generated from a soon to be introduced second homes council tax premium to tackle the pressing housing issues facing local residents.

The 100% premium on Council Tax for second homes in North Yorkshire, to be implemented in April, is projected to generate approximately £10.6 million annually, amounting to £42.4 million over the next four years. The council tax premium will mean owners will pay double council tax on properties not used as their sole or main residence.

The council has agreed that this additional income will be dedicated to funding housing initiatives across North Yorkshire. 

Councillor Simon Myers, says despite recent cuts to the council's overall funding the authority remains committed to spending the new revenue on housing projects.

Councillor Myers says the county faces a challenging situation in terms of the affordability of housing and says it's right that the council commits to spending the extra funding from second homes on solving the local issues.

The council's Second Homes Council Tax strategy aims to address a range of complex issues, from the scarcity of affordable and social rent housing in areas like the national parks and the coast, to the deficiency in supported housing.

Councillor Myers admits that the sums involved are not going to fix all the county's housing problems but believes it will enable the creation of over 500 new affordable homes and a new "Place of Change" for Scarborough, a supported housing facility which aims to help individuals with a history of rough sleeping and complex needs.

A significant portion of the funds will be directed towards increasing the supply of affordable homes. This includes:

• £12 million for an Affordable Housing Delivery Fund to help unlock stalled development sites and prioritise social rented homes.
• £4 million for a Rural Housing Delivery Fund to support affordable housing in rural exception sites.
• £4 million for a Community Led Housing Fund to empower community groups in delivering affordable homes.

Furthermore, the council is allocating £4 million as capital funding over four years to support the development of bespoke affordable homes for individuals with high support needs, including specially adapted homes and supported housing. An additional £2 million is earmarked for schemes that typically do not qualify for Homes England funding, such as area-based regeneration for key workers.

Up to £12 million will be invested in a new four-year Commissioning Strategy for Supported Housing, aiming to increase the availability of such accommodation countywide and alleviate pressure on statutory services. This includes an aim to provide an additional 150 supported housing placements.

In addition to capital projects, the council will also allocate £100,000 per annum to bolster its enforcement activity within the private rented sector, particularly in areas like Scarborough where housing conditions require improvement. This is in anticipation of increased responsibilities under the Renters’ Rights Bill and proposed licensing of exempt supported housing.

Councillor Myers emphasised the council's focus on residents, highlighting that in some other areas of the country where a second homes surcharge has been introduced, that money has gone into general council funds rather than being ring fenced for housing projects.

The council acknowledges the significant need for affordable housing, especially in rural and coastal communities where second home ownership has put considerable pressure on the availability and affordability of homes for local people. With approximately 8,500 households on the local housing waiting list, these initiatives are being seen as crucial steps towards addressing the housing crisis in North Yorkshire. 

The council anticipates that this additional funding, combined with investment from Registered Providers and Homes England, will support the development of around 540 additional affordable homes over the next four years, alongside the supported housing facility.