Will Second Home Council Tax Hike Help Yorkshire Coast Housing Market?

There are differing views in the Scarborough Borough over the effectiveness of a 100 per cent second homes council tax premium.

In an attempt to deal with the affordable homes crisis, North Yorkshire County Council has approved the introduction of a 100 per cent council tax premium on second homes.

At a meeting of North Yorkshire County Council on Wednesday, November 16, a plan for the introduction of a 100 per cent council tax premium on second homes was approved in an effort to tackle the affordable homes crisis affecting the county.

There are more than 8,000-second homes in North Yorkshire, the highest number in the region, many of which are located on the coast, including in Whitby and Scarborough.

However, there has been some disagreement locally over whether the second homes tax plan is the most effective way of dealing with the lack of affordable homes.

Phil Trumper, a Conservative councillor representing Whitby West on North Yorkshire County Council and the Esk Valley ward on Scarborough Council, said that though the plan was “not perfect”, it was “a step in the right direction.”

Speaking to the Local Democracy Reporting Service, Cllr Trumper said:

“I think we need to introduce further policies regarding private residency occupancy and new developments to go with it.

“And maybe the Government needs to start looking at the legislation regarding the need for planning permission for changing use from a residential [property] to a holiday let.”

Speaking at the NYCC meeting on Wednesday, Cllr Janet Jefferson, an Independent councillor on the county and borough councils, also raised the issue of holiday lets, stating that people in her ward had been evicted so the properties could be converted.

She said:

“I have houses within my division, not necessarily really near the sea but central, being turned every day into holiday homes or AirBnBs. And we don’t need planning in our area, they can do that.”

“I think we have a more serious situation with the incoming AirBnBs and holiday homes,”

Estimates predict that the Scarborough district alone could bring in almost half of the estimated annual second homes tax revenue of £14m, with plans for that to be reinvested into building more affordable homes.

The Scarborough and Whitby Constituency Labour Party (CLP) said that while the issue of housing scarcity should be “urgently addressed”, whether the plan “will make some or any positive impact on the core problem remains to be seen”.

A spokesperson for the CLP added:

“In reality, there are other things that need to happen to rebalance the housing situation here on the coast. Local Labour policy is to ensure more home building, and SBC cabinet on Tuesday agreed to a joint venture with Lovell which will build more affordable homes to a high standard.”

Speaking to the Local Democracy Reporting Service, Moira Cunningham, Scarborough and Whitby Labour chair, said:

“Time will tell whether this measure alone will achieve any significant results.

“What remains clear is that more decent quality, truly affordable housing – to both rent and buy – is desperately needed in our area. A Labour Government will prioritise making that happen”.

Asked whether the second homes tax policy, introduced by a Conservative-led council, might be seen as “un-Conservative” by some, Cllr Trumper said:

“I think a house, and getting people on the ladder is really important, and young people are finding it really difficult in places like Whitby.

“So I would say it is a very Conservative policy, I think it’s giving the opportunity to younger people to get on the ladder. But right now, it’s just about impossible.”

The second homes council tax premium is set to be brought into effect from April 2024 if Royal Assent is given to the legislation that will give local authorities additional powers.

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