Holiday Homes

I think this policy might need a bit of rural proofing……

Plans for a new levy on tens of thousands of second homes have been drawn up by Labour in a move designed to ease the housing crisis and generate funds to cut homelessness.

Second properties used as holiday homes would be the target of an annual tax should Labour win the next election, with each property facing an average levy of about £3,000 a year. It is the latest sign that Labour is prepared to back radical policies to show it is preparing for government and willing to target new taxes on wealth. The move could hit as many as 174,000 properties in England and raise up to £560m a year.

Labour has earmarked the money to battle homelessness, particularly the growing number of children living in temporary accommodation. Recent figures show that there are more than 120,000 children homeless in this type of emergency housing – up two-thirds since 2010.

The new levy would be based on a property’s council tax band, and represent a doubling of its council tax bill. The extra money would be sent to the Treasury rather than local government.

It would only be applicable to second homes primarily used as holiday houses, and would not include homes that are rented or used for employment, or static caravans. Areas that would be affected include Cornwall, north Norfolk and parts of the Lake District. However, the policy will provoke claims that it would rely on second homeowners being honest about the use of their property. It could also be complicated to collect the money.