Construction has started on twenty-six new affordable homes in Hunmanby and Shipton by Beningbrough, funded by a council tax premium on second properties.
Local families will benefit from twenty-six new affordable properties as construction gets under way on the first housing schemes funded by a council tax premium on second homes.
Fifteen affordable homes will be built on land south of Sands Lane in Hunmanby, offering a mix of one, two, and three-bedroom properties. The homes will be available for social rent and shared ownership, with priority given to people who have a local connection to the area.
A further eleven properties have been earmarked for land at Station Lane in Shipton by Beningbrough, near York. This development will provide four three-bedroom, five two-bedroom, and two one-bedroom homes, which will also be available through social rent or shared ownership for those with a connection to the village and surrounding area.
Buyers and tenants can expect to move into the completed properties by the autumn of 2027. All the homes are set to include energy-efficient features and low-carbon heating systems.
The new developments have been unlocked by almost £900,000 raised through a one hundred per cent council tax premium on second homes. The charge was introduced in April 2025 to help address the need for more affordable housing across the county, particularly in coastal and rural areas.
The premium effectively doubled council tax bills for second homeowners in a bid to bring more properties back into use for local families. The policy generates up to £10 million a year to support affordable housing and other key community projects.
North Yorkshire Council is contributing £435,000 to the Hunmanby development and £440,000 to the Shipton by Beningbrough scheme to support Broadacres Housing Association in delivering the sites.
The Hunmanby site represents a total investment of £4.2 million, which includes £2.4 million from Broadacres and £1.42 million from Homes England. Meanwhile, the Shipton by Beningbrough scheme will see £3.3 million invested, backed by £1.9 million from Broadacres and £905,000 from Homes England.
North Yorkshire Council’s executive member for housing, Councillor Simon Myers, said:
"Providing enough affordable housing is one of the biggest challenges facing North Yorkshire.
When we introduced the second homes premium, we promised that the funding would be reinvested to provide more social and supported housing for local people, with an emphasis on social rent. We are the only council in England to ring-fence this money and reinvest it exclusively in housing-related projects.
These are the first homes to be funded through the scheme, and without the grants from the second homes premium, they would not have been possible. The developments will help local people and families remain in the communities where they want to live.
We are pleased to be working with Broadacres, Homes England and our partners to bring these developments forward."
The chief executive of Broadacres Housing Association, Claire Townson, said:
"These developments will provide much-needed affordable homes in the communities that need them most.
We know that many rural villages and coastal communities are facing significant challenges when it comes to housing affordability, with local people and families often finding it difficult to secure a home close to their support networks, employment and schools.
These schemes will help address that need by ensuring homes are prioritised for people with a strong local connection. They also show how funding raised locally can be reinvested to create lasting benefits for future generations across North Yorkshire."
Revenue raised through the second homes premium is also supporting a number of other council priorities, including further housing schemes and regeneration projects across the county.
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