Spend Second Homes Premium on Local People says Filey MP

Filey's MP is calling for the funds raised from the council tax premium on second homes to be spent on providing affordable homes in the local area.

North Yorkshire Council introduced a 100% council tax premium on second homes last year, effectively doubling the standard council tax rate for these properties. This premium applies to substantially furnished homes that are not a person's sole or main residence.

Kevin Hollinrake, who also the Conservative party Chairman, says he thinks North Yorkshire Council has done a good job of keeping the funding raised from the premium on second homes ring fenced for local housing needs.

The MP says he hopes that will continue.

The second home premium. , That's controversial with certain individuals, usually individuals who own second homes to be fair. But nevertheless, you do understand those people, many of whom do put a lot back into the local community.

I'm not against it. I've never spoken against it, but I do think that the monies raised need to be dedicated to where they were meant to be dedicated to, which is the provision of affordable homes for local people.

And North York's got a good record in terms of that. 'Cause not every council has done that, some other councils have used it , to support other spending commitments.

But but I think the more that we push for that to remain the case, the better. 

However, some other local politicians have expressed concern about how the money raised from the council tax premium on second homes is being spent.

North Yorkshire council introduced a 100 percent premium on second homes last year, it has committed to spending the money on housing projects.

But Filey councillor - Sam Cross - is concerned that money raised from properties on the Yorkshire Coast is being spent elsewhere in the county.

"There were over a hundred people on the 22nd of November, attended a meeting in Filey about how unjust it was.

And some of them wouldn't have minded if the money had been spent. The 4 million is not spent in Filey, and building affordable homes or homes in Skipton is not local to the Filey area, not one penny of the 4 million collected has been spent in Filey, and that's what people are objecting to. "

The 100% premium on Council Tax for second homes in North Yorkshire was implemented in April and is projected to generate approximately £10.6 million annually, amounting to £42.4 million over the next four years. 

The council has agreed that this additional income will be dedicated to funding housing initiatives across North Yorkshire. 

The Council says that a significant portion of the funds will be directed towards increasing the supply of affordable homes. This includes:

• £12 million for an Affordable Housing Delivery Fund to help unlock stalled development sites and prioritise social rented homes.
• £4 million for a Rural Housing Delivery Fund to support affordable housing in rural exception sites.
• £4 million for a Community Led Housing Fund to empower community groups in delivering affordable homes.

Furthermore, the council is allocating £4 million as capital funding over four years to support the development of bespoke affordable homes for individuals with high support needs, including specially adapted homes and supported housing. An additional £2 million is earmarked for schemes that typically do not qualify for Homes England funding, such as area-based regeneration for key workers.

Up to £12 million will be invested in a new four-year Commissioning Strategy for Supported Housing, aiming to increase the availability of such accommodation countywide and alleviate pressure on statutory services. This includes an aim to provide an additional 150 supported housing placements.

In addition to capital projects, the council will also allocate £100,000 per annum to bolster its enforcement activity within the private rented sector, particularly in areas like Scarborough where housing conditions require improvement. This is in anticipation of increased responsibilities under the Renters’ Rights Bill and proposed licensing of exempt supported housing.