Campaign Group Plans Ombudsman Complaint Over Second-Home Tax

A campaign group is threatening to complain to the Local Government Ombudsman over North Yorkshire Council's implementation of a 100 per cent second homes tax, alleging maladministration.

A campaign group opposed to ‘unfair tax’ has accused North Yorkshire Council of ‘maladministration’ over the introduction of a 100 per cent second homes levy.

The campaign group SHOUT (Second Homeowners Opposed to Unfair Taxation) claims to have grounds for a complaint to the Local Government Ombudsman over North Yorkshire Council’s “imposition of the second homes double council tax”.

The group claims there are grounds to allege “maladministration” in how the council introduced the premium, but officers maintain the authority followed proper decision-making processes and has continued to assess the policy’s impact since its introduction.

SHOUT also called on the council to halt the policy until it has carried out a full assessment and consultation on the measure, which was introduced in 2025 and was re-approved this year.

The levy has raised millions of pounds for the authority’s housing projects but SHOUT – which was founded in Filey and has around 150 members – argues that councils should consider the impact on businesses, local services, the wider economy and which properties should be included before implementing such a premium.

A spokesperson said:

“This is not a campaign by second-home owners seeking to avoid higher council tax. It is a call for North Yorkshire Council (NYC) to examine whether its second-home premium is achieving the outcomes the council says the policy is designed to deliver.”

They added:

“SHOUT is not asking councillors to ignore the housing problem.

“We are asking them to consider whether the policy is producing the intended benefits and whether all significant consequences have been properly assessed.

“If the council is confident in the policy, it should be able to demonstrate that with evidence.”

A 1,000-signature petition by the campaign group will be debated by councillors at a meeting on Friday, September 25.

NYC has issued detailed rebuttals to points raised in the petition, and officers have recommended that councillors note the points raised instead of supporting the petition or recommending further consideration of the levy.

In a report, officers highlighted that in 2025, the council agreed to make £20 million of second homes council tax income available through a dedicated Second Homes Council Tax Housing Fund.

The petition requests that NYC suspend the second homes council tax premium pending a further review of its social, economic and housing impacts.

It also raises concerns regarding consultation undertaken prior to implementation of the premium, and the need for additional impact assessment work.

The council report states:

“The petition refers to Government guidance published in November 2024 and officers note that the council’s decision was taken more than eight months before publication of the Government guidance.”

A spokesperson for the campaign told the Local Democracy Reporting Service (LDRS):

“A key question remains: has the council assessed whether the properties it is taxing as ‘second homes’ are actually suitable for meeting the housing need it cites — and if not, why should councillors simply ‘note’ our concerns rather than request that assessment now?”

They added:

“SHOUT Filey looks forward to putting these questions directly to councillors on September 25, when the campaign group will present its petition and make a personal appeal to the council.”

Cllr Carl Les, leader of North Yorkshire Council, recently said:

“This is one of the solutions that we have come up with to address a problem that has been around for a lot of years.

“In some areas it’s becoming a crisis for young families who can’t afford not just to buy their own property, but even to rent their own property.

“We know that there are communities, not just in Filey and not just on the coast, but in other parts of North Yorkshire where if you go on a Wednesday night in the middle of winter, you won’t see a light on in the majority of houses because they are not lived in, so we’re trying to address the problem.

“And we’re the only council in England that has pledged that the money that we raise through the second homes premium — and it could be up to £12m a year — we will spend it on housing initiatives.”