Owners of second homes in North Yorkshire have been given a clear warning that a strict council tax premium will be enforced, starting in April, to help address the region’s critical shortage of affordable housing. North Yorkshire Council has confirmed that it will introduce a 100 per cent premium on council tax for second homeowners, effectively doubling their council tax bills. The move is expected to generate more than £10 million annually, which will be used to fund housing initiatives aimed at easing the pressure on local housing markets.
The policy will particularly target rural and coastal areas where second home ownership and holiday lets have pushed up house prices and rent, making it even harder for locals to afford a home. North Yorkshire has the highest number of second homes in the Yorkshire and Humber region, with over 8,000 properties registered. Despite an annual average of 800 new affordable homes being built across the county in recent years, the demand for affordable housing still far exceeds supply.
The council’s executive is set to meet on 18th March to discuss plans for the funding generated by the premium. This will include creating an affordable housing delivery fund and a rural housing delivery fund to target the areas that need affordable homes the most. The aim is to deliver approximately 540 new affordable homes over the next four years, alongside other housing schemes such as supported housing for people with complex needs and a dedicated project for disabled residents.
Cllr Gareth Dadd, Deputy Leader of North Yorkshire Council, said: “The county is such a wonderful place to live and visit, but this creates very significant pressures on the availability of housing, especially affordable homes. We will work closely with the Government to ensure properties are properly assessed as second homes and that the premium is enforced.”
The funds will be allocated in a variety of ways, with £12 million set aside for the affordable housing delivery fund, £4 million for rural housing, and £4 million to support community-led housing initiatives. Another £4 million will go towards developing bespoke affordable homes for disabled people and supported housing projects. Additionally, £2 million will be earmarked for regeneration projects, and £4 million for a supported housing scheme for people with complex needs who have experienced rough sleeping.
Cllr Carl Les, Leader of North Yorkshire Council, emphasised the importance of the policy: “One of the biggest challenges we face in the county is a lack of affordable housing, and we are committed to doing all we can to allow people to live in the places that they wish to. This is a vital means of raising much-needed funding that will allow us to develop hundreds of new affordable homes.”
The £42.4 million expected to be raised over the next four years will not only address housing shortages but also support the development of a comprehensive framework for supported housing, as well as funding to help improve housing conditions in the private rented sector.
As North Yorkshire continues to grapple with its housing crisis, the new council tax premium aims to bring second homes back into use for local communities and provide a much-needed boost to the affordable housing sector.
