What impact would introducing rules on who can buy new houses in the Scarborough Borough have on house builders?
That's one of the questions explored in the Borough Councils new report in to the practicalities of a primary residence scheme for the area.
The plan would seek to limit the number of second homes and holiday lets by giving local people priority over buying new homes.
The Borough Council's Planning Policy Manager - Steve Wilson - has been speaking to housebuilders as part of a study in to the plans.
Steve says the feedback from house builders that are active in the local area including Persimmon, Vistry (Linden Homes), Wharfedale, Barratt, and Thomson Homes had a number of consistent themes:
Some of the feedback from housebuilders included in the report states:
"As a house builder we would have to consider future works in the Scarborough Borough area and t his policy would most likely lead to a withdrawal from this area;"
also
"Certain schemes that we have completed in recent years in Scarborough Borough would have not been delivered. We would not have bid for the sites with this restriction attached due to increased levels of risk;"
As well as potentially leading to a fall in the number of new homes being built in the area there are also concerns that introducing a primary residence Scheme in the Scarborough Borough could reduce local house prices.
Many national parks run similar, but more far reaching local occupancy schemes, where houses can only be sold to people who reside in the park.
Steve Wilson says that does affect house prices.
There is a difference between the national park local occupancy schemes and the primary residence scheme being looked at for the Scarborough Borough.
The local occupancy scheme is more restricted and allows only persons passing a local connection test the ability to purchase a property. To pass a local occupancy test you generally need to provide evidence that you have been living in the area for a set period prior to purchase (2-3 years), working in the area or caring for a relative in the area.
The primary residence scheme requires the property to be occupied only as the main residence and cannot be a second home. There is no local occupancy restriction on primary residence dwellings. Subject to occupying the property as the main residence, the purchaser can relocate from any part of the country or wider.
The idea that house prices would fall as a result of the introduction of a primary residence scheme is not universally supported. Some of the feedback received from housebuilders suggested that introducing restrictions on who can buy new homes might actually cause prices to rise as more buyers from outside the area would be chasing older properties. One housebuilder said:
"This would be catastrophic to the local housing market and push up prices of the second hand homes market"
The Borough Council's report into the issues around primary residence schemes was presented to the council's planning committee last week and can be read in full here Second Homes and Holiday Lets
- RELATED STORIES : Should a Primary Residency Scheme be Introduced in the Scarborough Borough?
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