Devon: taxing second homes

Following on from the last word of a previous entry 
[In order to protect local residents from the inflated prices, the Affordable Rural Housing Commission had also called for further restrictions on the right to buy in protected areas and a new tax on second homes. Futures Forum: National Park for East Devon and Dorset: next stage pt 2] 
and news reported on the same issue from across the Channel
[...  a change in the French law on... residential taxes. Futures Forum: France: taxing second homes]
there have been similar moves here in Britain [Councils target second home tax discounts - FT.com] and Devon for changes to taxation on second homes:

In South Hams last December:

South Hams Council abolishes second home council tax breaks

Owners of second homes and houses that are empty for more than two years will pay more tax

Council tax breaks for second home owners have been abolished in a part of Devon in a bid to save money.

From April, South Hams District Council will charge 100% council tax on second homes, rather than the current 90%.

Properties that have stood empty for more than two years will be subject to 150% tax.

The council said it hoped the changes would "protect the most vulnerable people in the district" from having to pay more council tax.

John Tucker, leader of the Conservative-led council, said: "We feel that second home owners in particular should contribute fully to our communities at a time when budgets are tight.

"Our poorest residents are already being hit by several cuts in benefits in 2013 and we need to protect them as much as we can."

It is believed there are about 4,200 second homes in the district.

BBC News - South Hams Council abolishes second home council tax breaks

And in Plymouth too:

Plymouth second home tax cut to end

11:00am Wednesday 12th December 2012 in News

Plymouth City Council has scrapped a 10 per cent discount on second homes.

Owners of properties that have been empty for two years will also have to pay more under the new rules.  Empty homes for two years will face a bill of 150 per cent of council tax, the 100 per cent discount on empty and unfurnished properties has been cut from six months to one month and there will be a 50 per cent council tax cut for properties being repaired.

The council blamed the shift on "government cuts" saying there change could raise as much as £1m by targeting those who are more able to pay.

Plymouth second home tax cut to end (From Mid Devon Star)

And in North Devon:

New proposal gives council power over second home tax

Thursday, June 14, 2012

North Devon Journal

SECOND home owners and landlords of empty properties are facing higher taxes under new plans being put forward by the Government.

There are more than 3,400 long term empty and second homes in North Devon and Torridge. But hundreds of people remain on housing registers.

At present, properties are exempt from council tax for the first six months of being left empty, or 12 months if they are undergoing major alterations.

However, under new Government proposals local authorities will be able to levy the standard rate of council tax immediately, rather than wait for six or 12 months.

Councils will decide the levels of council tax discount and will be able to charge full council tax on second homes if they choose.

There are currently 1,559 second homes in North Devon and 492 empty properties.

Laurence O'Shea, revenues manager at North Devon Council, said: "The council has not yet assessed the financial impact of these changes."

Torridge has 1,042 second homes and 329 empty homes. There are 1,203 applications on its housing register.

Council leader Barry Parsons said: "The financial impact in terms of increased council tax for Torridge remains unclear as there are many factors to consider, but it could be around £13,000 per year."

There are more than 735,000 "ghost homes" in England.

New proposal gives council power over second home tax | This is Devon

There's been quite a discussion on the Farming Forum:

30-03-13, 05:46 PM
DaveJ 

Re: Second Home Tax

 Originally Posted by bottg 

So the CPRE are calling for a tax on second homes to protect rural communities from "townies in the countryside". Fairly standard stuff. But one of the Editors Picks comments is this:

214.

Dangerous Dave
2 HOURS AGOThis is the most stupid idea I have seen the BBC publish to date. Rural communities have been in terminal decline since the start of the industrial revolution. There is no longer a purpose for rural communities. All the wealth generation (and therefore jobs) are in the cities. The only rural communities that are surviving are dormitory towns or places that are worthwhile as a holiday retreat.

No wonder rural areas are marginalised with people like this around!

Sad to say but he's largely right. It's all very well to say there would be cheaper housing for locals if the second home crowd were kept out, but if there's no jobs then the only locals who will hang around are the unemployed and unemployable. It's getting like that around here. Unless you've been lucky enough to be born into a farm, generally speaking there's naff all work above minimum wage within a reasonable commute so most young people with aspirations move away to urban areas. I'd suggest that if you kicked the second home crowd out of the likes of the West Country and Pembrokeshire you'd end up with communities that are ghost towns all year round rather than just in the winter.

30-03-13, 06:29 PM
bottg 

Re: Second Home Tax

I think that in the near future more people will be able to (and want to) work remotely. This of course relies on fast internet connections, but if they are in place it means that accountants, IT professionals, designers, writers, customer service staff and all sorts of others will be able to work from home. This in turn bring in revenue to rural areas, which then helps to support shops, tradesmen etc. In addition, the home workers are there all week and so are more likely to become integrated into the community.

But this will only work if the price of houses is competitive with, or lower than, the cities. Which is less likely to happen if they are all snapped up as second homes.

30-03-13, 06:30 PM
MickMoor 

Re: Second Home Tax

I think that in the near future more people will be able to (and want to) work remotely. This of course relies on fast internet connections, but if they are in place it means that accountants, IT professionals, designers, writers, customer service staff and all sorts of others will be able to work from home. This in turn bring in revenue to rural areas, which then helps to support shops, tradesmen etc. In addition, the home workers are there all week and so are more likely to become integrated into the community.

But this will only work if the price of houses is competitive with, or lower than, the cities. Which is less likely to happen if they are all snapped up as second homes.

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