Revenue from a doubling of council tax on second homes in North Yorkshire is set to be used to build more than 500 affordable homes.
North Yorkshire Council chiefs hope the 100 per cent council tax premium will raise £10m a year when it comes into effect from April.
Members of the council’s executive will discuss a range of schemes to create more affordable housing when they meet on Tuesday next week.
The plans include using £12m from the premium for the council’s affordable housing delivery fund to build 400 new houses.
The funds would be used by registered housing providers and housing associations, with priority given to social rented homes and affordable rents, as well as schemes in areas with high levels of second home ownership.
A further £4m would be allocated to the rural housing delivery fund and another £4m would be earmarked to support the development of community-led housing.
The council is also proposing to set aside £4m as capital funding to develop bespoke affordable homes, including properties adapted for disabled people.
In total, it is hoped the premium will help deliver 540 homes over the next four years, as well as a 20-bed supported housing scheme on the North Yorkshire coast for people with complex needs who have a history of rough sleeping.
According to figures from the National Housing Federation, there are more than 8,000 second homes in North Yorkshire – the highest number in the Yorkshire and Humber region.
It is hoped the council tax premium will bring second homes back into use for local residents who have been priced out of the housing market in some areas.
Council leader Carl Les said:
“One of the biggest challenges we face in the county is a lack of affordable housing and we are committed to doing all we can to allow people to live in the places that they wish to.
“This is a vital means of raising much-needed funding that will allow us to develop hundreds of new affordable homes, targeting the areas of North Yorkshire where the properties are needed the most.”
Council chiefs have warned that checks will be done to ensure second home owners pay the new premium.
Deputy leader Gareth Dadd, whose responsibilities include finance, said:
“The county is such a wonderful place to live and visit, but this creates very significant pressures on the availability of housing, especially affordable homes.
“We will work closely with the government, whose valuation office agency is responsible for assessing if a property is a second home, to keep a close check on properties that are second homes and therefore qualify for the council tax premium.
“This is a new policy, but it is one we are totally committed to, and we will be making sure that those homeowners who have to pay the premium actually do so.”
As well as being used to build new homes, council officers are recommended that £100,000 a year be allocated to bolster the council’s enforcement work to help improve housing conditions in the private rented sector.
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