EXCLUSIVE: Housing campaigners issue warning over rise in holiday homes and call for 5% tax on short term lets

12 September 2024, 14:52

A leading housing charity says the money can be used to build or renovate affordable homes in coastal and rural areas suffering with a lack of families, workers and a so-called brain drain.

The new Labour government is being told it urgently needs to come up with an affordable home strategy to solve the UK’s housing crisis.

High interest rates, inflation, wage stagnation and entrenched economic inequality are part of the mix.

Declining rates of owner occupation especially among the under 35s, growing mortgage stress and rising rents complete the picture.

According to Action for Homes, one in every 18 homes in Cornwall is empty for more than six months of the year.

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Now a leading housing charity is asking the powers that be to bring in a 5% tax on the overall total bill when we buy a stay or break at a holiday let or Airbnb.

Three Seas Trust in Cornwall says that cash can be used for projects to build or renovate empty homes for local people.

They’re looking for a quarter of a million pounds to help restore 11 coastguard cottages for local people to live in.

Manager Simon Ryan says unless something is done to stop the spread of holiday homes, there will be more ‘ghost towns and villages’ across the UK.

“The tourist industry is really the heart of Cornwall’s community; the government need to tell Airbnb and the rest of the industry: WE will put a 5% tax on every sale - and that money will be ploughed back into affordable housing solutions for each community.

“This plot here, with this view is worth multiple millions of pounds - that’s the truth - we are not going to permit that to happen we are going to keep this for the people of Looe and in perpetuity.”

The rise in no-fault evictions in Devon and Cornwall means more than 30 thousand people are now on the social housing waiting list.

According to the local government association, more and more people are turning to local authorities for help.

In January this year LBC had disclosures from around 100 councils across England show that the spend on temporary accommodation in 2023/24 is projected to be 20% higher than last year’s £1.74bn, taking the total to just shy of £2.1bn.

After 5-years living in a property with no heating Abbie Fisher has moved into new social housing in the South Hams are of Devon.

With a low affordable rent, she is now contributing to the shops, pubs and keeping the local economy going especially during the quieter shoulder months.

She’s paying around £400 a month in rent but the security, physical and mental health of living in a house she and her two children aged 11 and 6 is improving and now feels she has a good future ahead of her.

Back in Looe, LBC spoke to Anne, a pensioner who has lived in the coastal town for 12-years, she agrees about the benefits of the Three Seas Trust project.

She says, “The town is not like it used to be because of the number of second homes here.  “Cause there’s nowhere for the locals and they can’t afford to buy here anymore, it’s ridiculous.”

“I’m a pensioner, I can’t afford £800 a month (in rent) and the rest, and if you’re a youngster you’ve got no chance to have a home, because wages aren’t that good down here.”

LBC contacted the Department of Housing about Simon Ryan’s proposal, and they responded with a written statement.

“We understand the frustration people feel when properties that could be someone’s house are used as second properties and holiday lets.

“We’re giving councils powers to charge a council tax premium of up to 100% on second homes and introducing a registration scheme for short-term lets to protect the spirit of our communities.”

Until a strategy is produced and tighter control on second homes and holiday lets is introduced Simon believes no fault evictions and available housing stock will continue to reduce.

He’s hoping that his small part in trying to provide ‘local housing for local people’ will gain momentum with time and hopefully reverse the current trend, which is tearing the very heart out of communities that the holidaymakers love so much.