Many blame second homes for house price rises

The move will see an estimated �4.5m invested in housing and other community projects in the county.

The money, which will be raised by Devon County Council and the county's eight district councils, will be used in a variety of ways.

Plans include eight affordable housing rental schemes in South Hams.

'Major social issue'

Other proposals include encouraging people to let unused rooms to single people in Exeter and buying suitable existing homes for rent to local people in east Devon through a housing association.

Devon's district councils have used their new powers to cut the council tax discount on second homes from 50% to 10%.

County council leader, Councillor Christine Channon, said: "We are delighted to be able to put this money into such an important issue for the people of Devon.

"By working in partnership with the district councils, we are able to make best use of this council tax windfall this year."

Councillor Brian Greenslade, the council's deputy leader, said: "Affordable housing is a major social issue and of great concern to our communities.