Councillors in a bid to double-tax second homes

York’s Liberal Democrat councillors will seek the support of the city’s councillors at a meeting of Full Council for plans to introduce a 100 per cent premium for council tax bills on second homes in the city.

The motion, set to be debated next week, could see tax bills for second home owners double as soon as legislation has been implemented in Westminster.

Second home ownership in York was estimated at 429 in 2020/21, according to the National Housing Federation, and is recognised to have a negative impact in terms of the supply of homes available to meet local housing need.

It is expected that, if implemented, the premium could provide over a £740k boost to council’s finances to deliver crucial local services, including provision of affordable homes. The motion also urges the Government to address concerns over any tax avoidance loopholes.

In 2018, City of York Council introduced a policy to charge an extra 50% (bringing it to a 100%) in Council tax on long-term empty homes in an effort to bring empty homes into proper use.

Councillor Tony Fisher, who will propose the motion at the meeting, commented:

“Access to affordable housing continues to be a major issue locally, and whilst delivery of affordable homes has ramped up significantly over the last few years, it’s clear that York is not immune to the national housing crisis.

“The considerable number of second homes in the city is undoubtedly adding to the issue, and we’re keen to do everything in our powers to ensure that York has the right mix of homes, so our communities remain sustainable for future generations. The proposals are ultimately aimed at bringing second homes back into use for local communities after many people have been priced out of the housing market in York.

“If approved by councillors, the premium would see council services receive a direct boost from the extra income. At a time when a decade of Government cuts combined with the impact of covid and inflation is leaving the delivery of local services on the brink, this extra support would be absolutely crucial.”