Rural home protection scheme
In response to yesterday’s entry about the proposals to put measures on those who own second houses, the Commission for Rural Communities has come back with its rational behind making those suggestions and what is to happen next.
“In the Commission for Rural Communities evidence to the Affordable Rural Housing Commission we noted that there are significant pressures exerted on rural housing markets, in particular on our most picturesque villages and hamlets, from those seeking to retire or buy a second or holiday home there.
“High demand from more affluent households has helped to create an
inaccessible and unaffordable housing market, for households on low to average and even high local incomes.We called for action in four main areas; better rural proofing of housing policies at all levels; a real increase in and targeting of resources to meet rural needs for affordable housing; planning policies which enable villages to grow and adapt to meet their changing economic and social circumstances; and empowerment of local communities to have a stake in their future and to help shape their own solutions.
“We welcomed the Government move to allow local authorities to reduce the council tax discount on second homes, and to keep the additional revenue raised. The policy has not been without its successes, however, overall it is largely failing to address, in any significant way, the impacts on rural communities of high numbers of second homes. The Commission recommended in March to local authorities that they should use all the additional resources raised to mitigate the impacts of high levels of second home ownership on local rural communities and to identify the effects in local strategies.
“The Commission has not put forward a plan for a new, ‘absenteeism’ tax to Government, which includes, the doubling or trebling council tax rates for all owners’ of second homes, nor creating a national register of second homes and introducing a new business rate tax for second homes.
“We have instead, suggested that the Lyons review, currently inquiring into the funding basis for local government, considers the case for removing Council Tax on second homes from the domestic Council Tax base for each local authority. It would then become a completely separate source of local revenue, rather like the various fees and charges levied by local authorities (such as resources raised from parking charges and enforcement).
“We do not pretend to have all the answers on the technicalities of this proposal. Although we are not proposing raising taxes for second home owners there would be consequences for the balance of funding for local government between local taxation and from income from central government. This is why it is important that this proposal is looked at in the wider context of the review being conducted by Sir Michael Lyons.”
So there you have it. Let’s hope it goes some way to make affordable homes (and council tax) a norm not an exception.
Many thanks to the Commission for Rural Communites for the speedy reply.
Cptn
If you liked this story, you could buy us a coffeeApril 19th, 2006









