Councillors in Cornwall are eager to raise the tax for second homeowners even more and are asking the UK government for the powers to do so.
Second homeowners in Cornwall will see their council tax doubled from April 2024 after the decision was approved unanimously by the council’s cabinet.
Holiday lets and second homes are thought to be pushing locals out of their towns, due to a lack of housing and unaffordable rents, contributing to the current housing crisis.
Supporters of the tax raise say higher council tax rates could not only help to fund essential local services, but also fund the creation of more affordable housing.
Cornwall Council believes it’s current proposals of doubling tax for 13,000 properties could raise an extra £25 million.
Cllr Olly Monk, portfolio holder for housing, said at the time of the tax approval: ‘This is great news, it is something we have been calling for since before we formed this administration.
‘It means that, together with the registration scheme of all holiday lets and the planning changes which the whole council has been calling for around private residences, this will start to give Cornwall much greater control of housing moving forwards.’
The government’s Levelling Up and Regeneration Bill has allowed the change which must have Royal Assent by April 1, 2023, for the tax raise to go ahead.
Cllr David Harris said he had asked Cornwall MP’s to ‘do their damnedest to make sure this Bill does get Royal Assent before 1st April’.
‘£25 million a year for this council is a lot of money, and to lose it for the sake of a Bill not going through for a month or so is something that would certainly be annoying,’ he added.
An Independent councillor Julian German has called for Cornwall to go even further and follow Wales’ lead by tripling tax on second homes.
The 300% council tax premium begins in April 2023 in Wales and has been set up to prevent second property owners from avoiding council tax by applying for business rates.
In some instances, second homeowners in Wales are selling up due to the tax hike, allowing first-time buyers to get on the property ladder.
Cornish councillors say this is having other benefits too, as the rules requiring second homeowners to show evidence their property is being let is leading them to avoid applying for business rates and to pay council tax instead.
Photo by Rob Keating