Two North Yorkshire towns are among the first towns to double council tax bills on second homes to help locals get on the property ladder.
The tax hike will start from April 2024 if and when parliament grants levelling-up legislation to grant local authorities more autonomy.
It is planned that the increase will help tackle a housing crisis by discouraging people from owning second homes. North Yorkshire has the highest concentration of second homes in England (23%) which inflates property prices in the region.
David Chance, the Conservative councillor, said the extent of second home owners was “tearing the heart out of our communities” as “Whitby people cannot afford to purchase a home in their own town”.
It is hoped the tax increase will either discourage second-home owners, force existing owners to sell up, or raise more in funds to help increase house building.
However, opponents to the plans said the tax hike would “penalise achievers”. Stuart Parsons, an independent councillor, warned the council could be “cutting its own throat” as second-home owners could convert the homes to holiday lets to avoid the tax. He suggested the council should create a housing trust to buy local homes and sell only to local residents.
This is not the first measure of this kind to be introduced as the Welsh government have also introduced plans to allow local councils to charge 300% premiums on second homes from April next year in order to discourage second home buying in Wales. The plans will also mean Welsh speaking buyers will get the first priority when purchasing a new house.
