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Last Updated: Tuesday, 28 October, 2003, 08:55 GMT
Holiday homes face tax hike
House signs
Second homes are partly blamed for pushing up house prices
South Hams District Council in Devon could be one of the first authorities in the country to charge second home owners an increased amount of council tax.

Currently second home owners pay only 50%, but under new powers councils will be able to charge as much as 90%.

In the South Hams area of south Devon, 11% of properties are second homes, one of the highest proportions in the UK.

It is one factor which has helped to push up house prices, making it difficult for local people to be able to afford homes.

It is estimated that if all Devon councils followed suit it would raise an extra �7m a year.

I don't think people buying second homes will be too worried if they have to pay an extra 40% on their council tax
South Hams leader Richard Younge

South Hams leader Richard Yonge said the extra money will be spent on providing more housing for local people.

He said: "We would spend the money on housing, not just at the social rented level, but also the middle band for people who are young professionals who have to live in these places for their work.

"I don't think people buying second homes will be too worried if they have to pay an extra 40% on their council tax."

Businessman Simon Hume from Hindhead in Surrey has just bought a second home in Noss Mayo.

Special motion

He said: "We will be doing holiday lets from it, which I think is very important because otherwise you end up with holiday home owners who are away for weeks on end and take all the life out of the village.

"I would comfortably pay 100% because I don't see the justification for the half rate."

A special motion on raising council tax for second home owners is being put before the local authority on Thursday.

North Devon Council is also considering raising council tax for second homes.

Council deputy leader Dave Butt, said: "We are losing the type of housing that first-time buyers would buy, which go to holiday lets.

"We have a serious problem retaining staff in the authority and also in schools and in the medical profession."




WATCH AND LISTEN
North Devon Council deputy leader Dave Butt
"The county council and the fire authority and the police authority would have to ring-fence the money for housing"



SEE ALSO:
Anger grows over second homes
27 Oct 03  |  Cornwall
Second homes tax call
09 Jun 03  |  Cornwall
Housing plans opposed
09 Jun 03  |  Devon
Holiday homes send prices soaring
20 Dec 02  |  England
The House Price Trap
06 Aug 02  |  The Money Programme


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