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.
