There’s been something of a love-in on a local authority in a popular tourist area of the UK – with second home owners and those who let their properties paying the price.

South Hams council has formally adopted proposals for second homeowners to pay double the council tax amount for the area. 

The council does not actually have the power to implement such a decision but says it will do so “as soon as legislation allows.”

The vote was unanimous with the leader of the Liberal Democrat opposition actually congratulating the Tory council leader on her work on the issue.

South Hams council declared a housing crisis in September 2021 and launched what it calls “a 12-point action plan.” 

One of those actions included lobbying the government to allow local councils to be able to charge 200 per cent council tax on second or holiday homes to ensure they contribute fairly towards the services they receive. 

The Levelling Up and Regeneration Bill, which is currently going through Parliament, included proposals along those lines. But it is unlikely to become law until April 2024 at the very earliest.

South Hams Tory leader Judy Pearce says: “The level of second home ownership in the South Hams has detrimentally affected the long-term viability of our communities. House prices are pushed upwards by the sheer quantity of second homes. Local residents can be denied a home as prices are pushed outside of what they can reasonably afford, a problem that is especially acute for the younger generation and first-time buyers.

“In November, I went to Westminster to speak to a House of Lords Select Committee to discuss the challenges around short-term lets and the impact that has in the South Hams. It’s truly concerning that with just under 4,000 second homes in the District, this means that nearly 1 in every 12 homes is a second home.

“We have taken this action to level the playing field for our local residents, making it easier for them to find somewhere to live, let alone somewhere to buy. It’s not an attack on second home owners, but us standing in solidarity with our residents, because they all have a right to have somewhere decent to live.”

And Lib Dem opposition leader Julian Brazil adds: “I’d like to pay tribute to the Leader of the Council. She has worked incredibly hard lobbying MPs for them to understand the issues. I’ve been campaigning for this over 15 years – it’s the right decision.”

He continues: “This is absolutely the right way forward. It will make a massive difference to us. To people who say it is an attack on second homeowners, it is not. What it is, is asking them to pay a fair share to our communities. They’re in the lucky position to own not one, but two houses, when many of our local families here struggle to own just one.

“The fact that they pay a little bit more should be compared to the increase in value of their second homes. Before the latest hiccup in the economy, house prices in the South Hams increased by around 25 per cent in the last year. Increases of hundreds of thousands of pounds. We are asking them to pay a little bit extra to support the services that we struggle to deliver.”