Construction has officially started on the first affordable homes funded through a council tax premium on second homes in North Yorkshire.
North Yorkshire Council is partnering with Broadacres Housing Association to build 26 affordable homes across two sites in Hunmanby, near Filey, and Shipton by Beningbrough, near York.
The council became one of the first authorities in the UK to introduce a 100 per cent council tax premium on second homes in April 2025, effectively doubling bills for second homeowners. Almost £900,000 raised from the scheme is helping unlock these initial projects alongside funding from Broadacres and Homes England.
The Hunmanby development on Sands Lane will provide 15 one, two, and three-bedroom homes (£4.2 million total investment), while the Station Lane site in Shipton by Beningbrough will deliver 11 homes (£3.3 million total investment). Offered through social rent and shared ownership, all properties will be prioritised for people with a local connection to the areas and are due for completion by autumn 2027.
“When we introduced the second homes premium, we promised that the funding would be reinvested to provide more social and supported housing for local people,” said Cllr Simon Myers, Executive Member for Housing at North Yorkshire Council. “We are the only council in England to ring-fence this money and reinvest it exclusively in housing-related projects. Without these grants, these developments would not have been possible.”
Claire Townson, Chief Executive of Broadacres Housing Association, added: “These developments will provide much-needed affordable homes in the communities that need them most. They show how funding raised locally can be reinvested to create lasting benefits for future generations across North Yorkshire.”
