A plan to double council tax bills on second homes in North Yorkshire has been delayed.
The proposal was going to be discussed by the county council as a response to a surge in people buying holiday homes in the county, putting pressure on local housing markets.
Executive member for finance - Councillor Gareth Dadd - says the idea isn't dead, but needs more research and a steer from central government.
The proposal is part of the authority’s response to a surge in people following the pandemic buying holiday homes in the tourism destination county, increasing demand for housing and prices so that local families cannot afford to stay in the communities.
The proposal to be ready to levy the extra tax should expected government legislation be approved has been warmly some councillors as a “statement of intent” by the council to get to grips with the escalating issue which has already seen some villages, particularly on the Yorkshire Coast and in the Dales, be compared to ghost towns for much of the year.
The council’s officers have highlighted that although uncertainty surrounds possible loopholes in the forthcoming government legislation, a law to apply a 100 per cent premium on second homes was introduced in Wales in 2017/18 which last year was paid on more than 23,000 properties there.
However, critics have claimed the premium could even lead to council tax receipts falling as second home owners could simply transfer the property to being a holiday cottage business or swap the named owner’s details for someone who does not own property.
A meeting of the executive last week heard given that council tax rates for second homes mirror those of main residences there may also be issues that need resolving with how properties are classified for council tax.
The County Council's Executive member for finance - Councillor Gareth Dadd - says there were concerns the plan had legal loopholes which would enable second home owners to avoid the charges - he's now asked for more research to be done.
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