'Without second home owners, we wouldn't have a High Street'

The owners of businesses in a seaside town have said that an increased tax on second home owners could ruin their livelihoods.

North Yorkshire Council introduced the premium last year and affected householders are now charged double rates of council tax.

Last month a public meeting was held in Filey, where traders have called for the policy to be reversed despite it raising more than £14m in revenue this year.

Warren Mills, who runs Kayleigh's Cafe, said: "Without second home owners we wouldn't have a high street. We need them."

The authority said the extra charges were to make the property market more accessible to buyers looking for affordable homes.

Mr Mills said the second home owners who use his cafe say they are being "forced out" of Filey.

"There is a street around the corner where I've noticed two or three up for let and another three or four for sale. That's only in the last month or so - it is having a knock-on effect.

"We need them for business. We need the second homes. One of our customers told me she has to pay an extra £2,000 a year, or she'll have to sell her property."

He believed that the deposits required for first time buyers were more of an obstacle than the supply of properties available.

The council's deputy leader, Gareth Dadd, said the policy was a response to the "disastrous" effect on communities where many properties were not occupied year-round.

"There are some hamlets and villages where you don't see a light on in the properties in January, February, sometimes March. That can't be right.

"It was an incentive to try to turn some of those homes into full-time residential use because we are a living, breathing community and we want that community to thrive."

The revenue generated has been "informally ring-fenced" to support community-led housing projects, Dadd added.

Another cafe owner, Omar Musu, said customers at Bruschetta were often discussing the tax and some were already selling up.

"I am concerned. Winters are very long in Filey, I hope they don't become longer. If they do, I might have to close more than one day a week.

"I am worried there could be repercussions for jobs in the longer term. If people are only here half a year and are paying their council tax, I don't think they should be taxed any more."

Rick Bragg has owned his holiday flat in the town for nearly 20 years and argued that part-time residents were vital to the local economy.

"We are here and spending money, doing all the things that people do where they live."

Mr Bragg said the meeting of second home owners saw several of them question whether their properties would be suitable for young buyers.

"People don't want to live in a two-bedroom ground floor flat with no outside space. The Crescent Gardens in Filey are Grade II-listed, heating and lifts can't be put in, people don't want to live like that.

"They want a garden and space to bring the kids up."

Dadd said he did not accept the traders' claims.

"Surely if you've got somebody living there 52 weeks a year, the spend from that individual and family will be greater than someone who rocks up two or three times a year."

He also disputed the argument that the second homes, including apartments, did not meet local needs.

"We've got a housing waiting list. Local people are having to move out of North Yorkshire because of the lack of availability.

"If you are starting out on the journey of home ownership, a flat is better than nothing."

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