“Cash from doubling council tax on second homes in Devon should be used to address local housing issues and not go elsewhere, that’s the view of local councillors.” [North Devon District Councillors]
The Levelling Up and Regeneration Act 2023 means that councils can now charge double council tax on properties that are “substantially furnished” but no one’s sole or main residence. It is hoped the changes will allow more properties to be brought back into use for the local community.
Councils in the south west of England that have increased council tax on second homes are missing out on £55m of income due to the ‘broken’ business rates system, real estate experts warn. However, Colliers has found that this policy is backfiring because many homeowners have responded by ‘flipping’ their properties, so they are classed as small businesses. As small businesses they do not have to pay council tax and as holiday lets they are eligible to claim 100% tax relief on business rates.
Cash from doubling council tax on second homes in Devon should be used to address local housing issues and not go elsewhere, that’s the view of local councillors. North Devon Council along with other local authorities in the county have agreed to increase property tax on second homes from next March which could bring in as much as £5 million countywide.
A report by the Devon Housing Commission recommends that this money is earmarked for addressing housing challenges and infrastructure needs across Devon. The county’s housing crisis is believed to be exacerbated by the 11,000 second homes, as well as the rising number of empty homes and not enough affordable housing.
Councillors were told of a letter being sent from Devon County Council to all district council leaders which said the extra revenue would be spent on highways. Denise O’Callaghan, Liberal Democrat, said using the second homes tax to fix potholes would amount to “a betrayal” of people in Devon.
Devon County Council should put some of the windfall it expects to get from a forthcoming extra tax on second homes to provide affordable housing for key workers and people leaving care, a councillor has said… Cllr Brazil frequently raises the issue of unaffordable properties being particularly problematic for key workers such as teachers and NHS staff who want to live in the communities they work. Although district councils collect council tax, much of it is passed to the county council.
How do we in Sidmouth think this extra should be spent?
