Derbyshire council vote to charge second homeowners double in tax slammed as ‘politics of envy’

A Derbyshire Dales District Council (DDDC) meeting last night saw the authority agree to adopt the new extra premium for second home owners for the second time in two years – with Government legislation postponed last year. The extra 100 per cent council tax charge would come into force next April, giving owners a year to plan ahead for the extra fees.

A definition of a second home was specified as being a property which is “substantially furnished but has no permanent residents”, with some exemptions such as for properties which are currently being advertised for sale expected but not yet finalised.

Debate over the issue saw Cllr Gareth Gee declare his firm opposition to the plan, saying it would be the equivalent of charging people who own two cars double in tax for each vehicle.

He said: “This is just the politics of envy as far as I am concerned. This is not a method of providing affordable houses. Why do these people have second homes? Somebody dies and they are left to look after it. People in the private sector invest in homes because that is the only way they can get a pension. They might be renting them out.

“But targeting these people and doubling their housing tax… all these people who own these second homes are paying council tax already. They are contributing to DDDC. They are our customers and we want to nail them for double council tax and I don’t agree with it and I think it is wrong. Do we double car tax people with two cars? No we don’t.

“I am in favour of providing affordable homes for young people, but we don’t do it by robbing people who are good council tax payers who are just looking after themselves and their families.”

Cllr Laura Melstrom said: “This isn’t about the politics of envy as far as I am aware. We are losing housing to second home owners faster than they can build new homes. There is a housing crisis nationally and there is a housing crisis locally.

“We have very few levers which we can use to affect house prices and this is one of them. I do not believe the result of this will be a flood of affordable houses onto the market, I don’t think anyone believes that.

“But it will exert some downward pressure on market prices so that residential buyers will be in with a fighting chance. It is not about punishing second home owners, it is about influencing the housing market to make it fairer for people who want to live here.”

Cllr Lucy Peacock said there were a lot of “over-priced” homes for sale in her area that have been marketed for years, with council officers suggesting the authority could put a limit on the discount it may make available for people who are already marketing their second home.

Cllr Sue Burfoot said: “We have all got to be aware of the impact of second homes particularly on the rural communities and our villages.

“We have got less availability of low-cost homes, we have got inflated house prices, people getting gazumped – I know that for a fact because my nephew was, several times – there are threats to our rural schools and to shops and that leads to unsustainable communities.”

The act of being “gazumped” involves one buyer having their bid accepted but the seller then accepting a second, higher offer from another prospective buyer.

Cllr Burfoot continued: “The facts are that the majority of second homes in the Derbyshire Dale fall in the lower tax bands, these are surely the ones we hope are for people on lower incomes and people who want to live near to their family, friends and their workplace would hopefully be able to purchase.

“I do realise this is not going to be an instant solution, we all have to accept that. It will take some time, years, probably to reduce the number of second homes, it is not an instant outcome. I do accept that this isn’t totally a black and white issue, but I do think it is the right thing to do.”

Cllr Joanne Linthwaite said: “We all know young people struggling to find affordable homes to rent, nevermind buy. Currently there are three two-bedroom homes for sale in Winster. One for £275,000, one for £315,000 and one for £350,000, how many first-time buyers do we know who can afford those prices?”

The second homes premium could bring in an extra £2 million in extra council tax, of which £280,000 would be retained by the district council and the rest distributed to other taxing authorities – with the majority share going to Derbyshire County Council.

Council papers on the issue detail that 8.4 per cent of all residential properties in the Dales are not the primary homes of Dales residents. Out of 35,000 homes, 2,950 properties are either holiday lets, second homes or have been empty for more than two years.

As of January 15 this year, the council said there are exactly 1,000 second homes in the Derbyshire Dales, alongside 1,464 empty homes (577 empty for two years or more) and 1,373 holiday lets.

The council is to approach the county council in the hopes of securing 50 per cent of the new premium, which could see the district receive £560,000 a year from 2025.