Housing leaders’ support for council tax premium on second homes across North Yorkshire

Members of North Yorkshire County Council have backed plans to introduce a 100% premium for council tax bills on second homes in the county within the next two years.

The new scheme will effectively double council tax bills for second home owners, and means that North Yorkshire is one of the first areas in the country to progress with adopting the Government’s new measures.

The proposals are ultimately aimed at bringing second homes back into use for local communities after many people have been priced out of the housing market in some of North Yorkshire’s most desirable locations.

It is also expected that the decision to introduce the premium will provide a multi-million pound boost to finance key council priorities, including a central aim to use the funding to help introduce more housing in areas particularly affected by the affordability crisis.

A lack of affordable housing across North Yorkshire has been a long-running issue, accentuated in many of the county’s rural and coastal locations that are among the most desirable places to live in the country.

House prices in the Yorkshire Dales, for instance, are about a third higher than the county’s average. The average cost of a property in the Dales is nearly £400,000.

There is a high demand for second homes, increasing the strain on an already limited housing stock. According to the National Housing Federation, there are 8,199 second homes in North Yorkshire - the highest number in the Yorkshire and Humber region.

The National Housing Federation’s chief executive, Kate Henderson, voiced her support for the move, which is particularly prevalent in North Yorkshire’s vast rural areas.

She said: “I’m pleased to see decisive action being taken to address the housing crisis in North Yorkshire. There is a chronic shortage of truly affordable homes in rural areas, and where people can’t afford to live, they can’t afford to work, which ultimately damages rural growth and productivity. I’m glad to see that the revenue raised from these measures will be directed to providing the homes that communities sorely need.”

Analysis has shown that the introduction of a 100% premium on council tax bills for second homes in North Yorkshire could generate in excess of £14 million a year in additional revenue.

The chief executive of the Northallerton-based Broadacres Housing Association, Gail Teasdale, said: “As the only housing association with its headquarters in North Yorkshire and with the vast majority of our homes being in the county, we have a vested interest in ensuring our communities remain sustainable for future generations which means having the right mix of homes.

“By working with partners such as North Yorkshire County Council, the Yorkshire Dales and North York Moors National Park authorities we are committed to providing quality, highly energy-efficient homes that meet the needs of a range of people across North Yorkshire, whether that’s younger people, families or those with complex needs who require specialist housing and support.”

North Yorkshire County Council’s leader, Coun Carl Les, said: “This decision is a major step forward to helping tackle what has been such a long-running issue that has affected communities across North Yorkshire.

“To ensure people can live in the places they want to is vital to ensure that these communities remain sustainable for the future, and the council tax premium is a critical tool in achieving that.”