Campaigners call for levy on second homes

The Craven Housing Forum estimates that there are 733 house owners in the area who do not pay full council tax because the properties are used as a second home or as holiday accommodation.

Under current legislation, owners of second homes are entitled to a 50 per cent rebate at the second address, and people who run holiday accommodation pay business rates instead of council tax which goes straight to the Government and not the local community.

The forum, made up of representatives of local organisations interested in housing issues, has started to lobby MPs to support an increase in tax for second home owners.

The forum was hoping that the issue would be included in the Government's white paper which came out in July but was disappointed. Its intention now is to raise enough interest in the issue that the 80 rural MPs will include it in the green paper due in early September.

Campaigners are asking second home owners to pay a levy the equivalent to the standard council tax amount which will be kept separate and given back to the local community to use towards building or renovating affordable houses.

Ian Cuthbert, chairman of Kettlewell Parish Council, is in favour of the campaign.

He said: "Historically, when all homes were rated, holiday homes paid full rates and parish councils got a share of the precept for the whole community. When poll tax came in, businesses paid business rates which went straight to the Government meaning parish councils lost out on the tax paid by holiday home owners.

"Now, under council tax, second homes can claim a 50 per cent rebate on their tax, and holiday accommodation pay business rates and there is no means by which the parish council can get a part of that."

In Kettlewell, 40 per cent of homes are either second homes or holiday accommodation.

Mr Cuthbert said: "If these people can afford a second home, they can afford to pay council tax."

The forum would like to see second home owners paying up to treble the amount of tax, a move which has been supported by local councillors.

Mary Russell, from Craven Housing Forum, pointed out that young people who had been brought up in the area could no longer afford to rent or buy properties and are therefore moving away.

"The wages in Craven are below the national average," she said. "Yet house prices are above. Local young people are being forced to move away from where they were brought up and then travel back to work. Second home owners are buying property and pushing prices up, depriving local people. They should give something back."

Chairman of Craven District Council, Coun Peter Walbank said: "Living in the Dales myself it is apparent that young people can't get homes and it is noticeable that many homes are being sold and used as second homes.

"It is not reasonable that people can enjoy owning a second home when people who need a home can't get one. Everyone who lives here is paying for them, subsidising the council tax which they're not paying. The services are still there even if they are not using them."

However he pointed out that there were other factors to consider in providing affordable housing, and felt the money would be better coming from an increase in council tax rather than a separate levy.

"There is no such thing as an affordable house in the Dales, there simply aren't the plots. We need to look at alternative solutions," he said.

The council cannot impose a levy until the Government removes the restrictions. Richmondshire District Council has already resolved to pass the levy and is also lobbying the Government to debate the issue.

MP David Curry is one of the members who has been approached by the forum. His reply states: "Personally I have doubts as to whether or not amending local tax will have much impact upon people's willingness to buy second homes.

"The provision of affordable homes in the centres of population is, I believe more important than believing that significant structural changes will come about through the adjustment of council tax."