A holiday lettings agency has taken the unusual step of speaking out in favour of higher council tax for second home owners.
Finest Retreats says it applauds the recent vote to double council tax for second homeowners in North Yorkshire and wants other local authorities to follow suit - chiefly because it believes this will push owners to make their properties “economically productive and boost local areas in the UK”.
North Yorkshire’s vote is in anticipation of the Levelling Up and Regeneration Bill passing in to law, and allowing the doubling of council tax for certain properties.
This will only apply to those owners who do not let out their property and contribute to the local economy. By letting out the property for minimum periods, they can avoid the penalty and the decision by the council can hopefully boost local areas by encouraging properties to open up more to guests.
Finest Retreats founder Richard Bond says: “Unlike second homes, often left empty for weeks on end, full-time holiday lets generate a year-round footfall for those who eat, drink and shop in the local area. Second home owners should view their additional properties as an opportunity to run them as a business that will be central in creating new jobs across the UK as well as income for the community.
“Professionally run, full time holiday lets can contribute six times more to a local economy than unoccupied second homes. We hope the decision will bring many of these second homes into the lettings market and help the local economy,” Bond adds.
The company claims that fully-managed holiday lets are of valuable economic benefit to the communities where they are located, generating up to six times as much spend per property per year as a second home and up to three times as much as an owner-occupied property.
Bond continues: “There are clear differences between holiday lets and second homes. Second homes that are only used a couple of times a year are different from holiday lets that are rented out year-round generating income for the community.”
The company cites forward bookings for 2023 as evidence of how such properties can benefit communities - based on internal booking data, forward bookings are 191 per cent up year on year, compared to forward bookings 12 months ago, and bookings for six guests or more up are 274 per cent for 2023 over the previous year.
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I see what they are doing…. 👍🏻👍🏻 Get those who don’t want strangers taking holidays in their lovely seaside cottage to reconsider 💰💰 Smart move.
Empty second homes rob the community of income and life. A succesful holiday brings in a higher spend than a long term let as holiday makers splurge on pubs and restaurants and kiss me quick hats.
So what happens if they say a property had to be rented for 70 days but the property does not attract a holiday makers for that period, maybe only 50 days rented?
Valid point, but I'm sure most people would have a "friend" who would rent it for a few weeks in the winter for a special winter rate of £50 a week.
Even including their booking agent fees it would be massively cheaper than the extra Council Tax.
That's exactly the situation I have been in.
Legislation is made based on the sunny south but frozen Scotland has a much shorter tourist season.
Second home owners are vilified but I have brought two derelict fishermen's cottages back to life and given six figure amounts of business to local tradesmen over the last few years.
Absolutely disgusting. Why not force people with a second car to give free rides to neighbours or face double car tax. Most second home buyers will have already paid an extra 3% stamp duty. If I. Choose to spend my money on a second home the I will already be paying council tax on two properties, unlike many dropouts who get council tax exemptions.
Well said!
I suppose the way to get around this would be for husband and wife to separate and have one home each, claiming the 25% discount on each property of course, then go visiting, that would likely spice the old sex life up as well !
I know people who tried that but it didn't wash with the local councils unless they were legally separated.
Non married couples have campaigned for the same rights as married couples but it doesn't work the other way around with married couples penalised if they each have a home and don't live together.
Owning a second property under any guise rental, air bnb or second home isn’t advisable these days….. you simply become a government cash cow
Not time to think today.
Watch ITV shortly 6.30 pm about landlords.
Yes just have 1,000,000 evictions, no surprise there then, well done government, Grove and the likes of Shelter the blame is squarely at their doors
Ridiculous and for those who didn’t see ITV News @ 6.30 watch it at 10.00 pm to night.
We weren’t represented or asked to tell it the way it really is, what a stitch up.
Half a story Michael, nothing new there .
Andrew yes said 1’000’000. face eviction no mention of actual reason why, Mr Michael Gove housing Secretary at his stupid THE WHITE PAPER and the Removal of Section 21 he should resign immediately. Causing 200’000. Landlords to exit creating a shortage and homelessness obviously driving up rents, While hundreds of thousands more landlords teetering on the edge of quitting, including me after 42 years.
Well said, Michael! Great to have somebody telling the truth.
Socialist communism is being ushered in bit by bit. There is constant taxation squeeze. Time to deploy capital overseas in a more tax friendly environment.
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