People living in holiday home hot-spots have welcomed a move to slash council tax discounts for second-home owners.

People with second homes could lose their 50% discount on council tax under proposals being put forward by the government.

Local authorities in England are being given the power to cut the discount to as little as 10% and use the extra money for public services.

The government estimates that the changes could raise an extra �65m nationally for councils to invest locally.

Price pressure

In Devon, Cornwall and other popular holiday home areas, demand is helping push house prices up.

Garage sale: Yours for �135,000 in Devon

Campaigners hope the government's move will ease some of the pressure on prices.

Prue Breyley, of the Exeter-based Homeless Action Group, said the council tax move was long overdue.

She said: "All our lovely local young people haven't got a chance on the property ladder because the prices are absolutely astronomical everywhere.

"I think as a Devonian that all local people should be given first choice."

Secluded, but not excluded from council tax

Official figures showed the price of the average house in the region rose to �146,150 in the three months to September, up from �123,856 in the same period last year.

The increase of 23% was one of the biggest in the country.

A double garage has just been put up for sale in the sought-after South Hams area for �135,000.

Average house prices in the South Hams are nearly 10 times the average salary for the area.

People living in the Lake District have also welcomed the move.

'Ethnic cleansing'

South Lakeland councillor Stan Collins said the discount encouraged more people to buy holiday homes.

He said: "We have got a very serious problem here.

"Local people are being forced out in a kind of genteel ethnic cleansing, they are being forced out of the communities they have lived in all their lives."

'Pretty miffed'

But Bill and Barbara Marshall, whose main home is in Bedfordshire, but who spend about eight weeks a year at their second home in North Norfolk, object to the changes.

They currently pay 50% in North Norfolk which Mrs Marshall says she feels is "a reasonable share".

She would feel "pretty miffed" at having to pay the full charge.

Her husband adds: "We don't feel we're not contributing here because the rates aren't required to provide any schooling for our children.

"We're not likely to be dependent on them (the local authorities) at the moment for old age or sickness.

"And our refuse collection is pretty minimal."

The change will form part of the Local Government Bill to be introduced in this session of parliament.