Latest news with #secondhomes
Telegraph
3 days ago
- Business
- Telegraph
‘Council charged me a £3k premium for crashing at my parents' home'
Jessica Rose was left 'disgusted' after her council hit her with a £6,000 bill – for a second home that doesn't exist. The first-time buyer, 50, purchased her home in Shrewsbury, Shropshire, in April, after years of 'trying and failing' to get on the property ladder. But after the previous owners left it in a state, she was forced to crash at her parents' house in Wolverhampton for five weeks while work was ongoing. On May 13, Shropshire council charged her double council tax, billing her £6,603.20 for a 'second home', which critics have described as an 'opportunistic cash grab'. Ms Rose told The Telegraph that she feels 'attacked': 'It's a nasty, malicious thing to do. It's extremely greedy.' Thousands of families across the country are being swept up in the punitive clampdown on second homes, irrespective of circumstances. Families with inherited properties, flats needed for work or houses that have been sat on the market for years are being charged exorbitant bills. The premium was introduced by the previous Conservative government to fix the housing crisis, but has instead been used by councils to boost their coffers. The Telegraph is calling for the levy to be scrapped, which has seen the average second home bill rise to £3,672.
Yahoo
4 days ago
- Business
- Yahoo
Second home owners face bigger council fines under ‘two-tier system'
Second home owners could be charged more than people who own one property for falling behind on their council tax bills, government documents suggest. Angela Rayner, the Housing Secretary, has suggested capping penalties for homeowners with one residence, while dishing out bigger fines for those who fail to keep up with the new second homes premium. Campaigners argue the introduction of a two-tier system would be a 'scandal' adding further financial strain on second home owners. The Ministry of Housing, Communities & Local Government (MHCLG), run by Ms Rayner, has put its proposals out for public consultation, as it attempts to redraw the severity of fines issued to those in council tax arrears. As it stands, taxpayers with outstanding debt face additional legal costs ranging from £35 to £172 to cover the fees paid by a council to obtain a liability order. The Government said the discrepancies in charges between authorities are 'not fair', and therefore a cap on the total costs, which can be added to a bill, should be introduced. It pointed towards an existing £70 cap in Wales, but in its public questionnaire, the MHCLG suggested second home owners could be treated differently. The consultation states: 'The Government is interested in views on whether a cap on the liability costs should apply equally to all types of residential properties or whether, for example, it should not apply to empty and second homes which can attract council tax premiums.' Respondents are then directly asked: 'Should the cap apply when seeking a liability order on second or empty homes?' The suggested disparity between the treatment of second home owners and owners of a sole residence has sparked accusations of a two-tier legal system. The vast majority of second home owners already face hefty council tax bills after more than 200 local authorities introduced double taxation in April. Now they face the further threat of a legal fees premium, should the Government opt to exempt them from a fees cap. John O'Connell, chief executive of the TaxPayers' Alliance, said: 'It would be a scandal if those who are forced to pay double the tax for the same or fewer services received fewer legal protections as a result. 'Whitehall needs to recognise the sudden financial difficulties that many residents will face as their properties become unaffordable. 'The premium on second homes is a disgrace of a policy which should never have been introduced in the first place.' A host of second home owners have told The Telegraph of their worries over the affordability of the levy. On average, a second home owner is now saddled with a £3,672 annual council tax bill, but in some cases, the fee surpasses £10,000. Telegraph Money is campaigning for the levy to be abolished. A Ministry of Housing, Communities & Local Government spokesman said: 'Our ambitious plans to improve the administration of council tax will deliver a fairer system for taxpayers while giving councils the tools to recover tax and deliver public services. 'We are currently exploring options on the best way to achieve this, and no final decisions have been made.' Sign in to access your portfolio
Telegraph
4 days ago
- Business
- Telegraph
Second home owners face bigger council fines under ‘two-tier system'
Second home owners could be charged more than people who own one property for falling behind on their council tax bills, government documents suggest. Angela Rayner, the Housing Secretary, has suggested capping penalties for homeowners with one residence, while dishing out bigger fines for those who fail to keep up with the new second homes premium. Campaigners argue the introduction of a two-tier system would be a 'scandal' adding further financial strain on second home owners. The Ministry of Housing, Communities & Local Government (MHCLG), run by Ms Rayner, has put its proposals out for public consultation, as it attempts to redraw the severity of fines issued to those in council tax arrears. As it stands, taxpayers with outstanding debt face additional legal costs ranging from £35 to £172 to cover the fees paid by a council to obtain a liability order. The Government said the discrepancies in charges between authorities are 'not fair', and therefore a cap on the total costs, which can be added to a bill, should be introduced. It pointed towards an existing £70 cap in Wales, but in its public questionnaire, the MHCLG suggested second home owners could be treated differently. The consultation states: 'The Government is interested in views on whether a cap on the liability costs should apply equally to all types of residential properties or whether, for example, it should not apply to empty and second homes which can attract council tax premiums.' Respondents are then directly asked: 'Should the cap apply when seeking a liability order on second or empty homes?' The suggested disparity between the treatment of second home owners and owners of a sole residence has sparked accusations of a two-tier legal system. The vast majority of second home owners already face hefty council tax bills after more than 200 local authorities introduced double taxation in April. Now they face the further threat of a legal fees premium, should the Government opt to exempt them from a fees cap. John O'Connell, chief executive of the TaxPayers' Alliance, said: 'It would be a scandal if those who are forced to pay double the tax for the same or fewer services received fewer legal protections as a result. 'Whitehall needs to recognise the sudden financial difficulties that many residents will face as their properties become unaffordable. 'The premium on second homes is a disgrace of a policy which should never have been introduced in the first place.' A host of second home owners have told The Telegraph of their worries over the affordability of the levy. On average, a second home owner is now saddled with a £3,672 annual council tax bill, but in some cases, the fee surpasses £10,000. Telegraph Money is campaigning for the levy to be abolished. A Ministry of Housing, Communities & Local Government spokesman said: 'Our ambitious plans to improve the administration of council tax will deliver a fairer system for taxpayers while giving councils the tools to recover tax and deliver public services. 'We are currently exploring options on the best way to achieve this, and no final decisions have been made.'
Daily Mail
6 days ago
- Business
- Daily Mail
Families in seaside town dubbed Chelsea-on-Sea celebrate after developer loses bid to scrap rule new builds should be sold to locals only
Families in a seaside town dubbed Chelsea-on-Sea have celebrated after a developer lost its bid to scrap a new rule that new builds should only be sold to locals. The Planning Inspectorate ruled this week that Valentine London can only sell its four new luxury apartments in Salcombe, Devon, to people planning to live there full-time. The developer had appealed South Hams District Council's 2019 rule that any new homes in the coastal resort town must be primary residences. The firm said this strict condition made its £1.2million flats 'unsellable' - but its pleas were rejected by the national planning body on Monday. Salcombe earned its nickname, punning on the affluent London area of Chelsea, as almost half its dwellings are owned by outsiders. They often use their properties as second homes or holiday lets. It means property prices in the town have soared to an eye-watering average of £826,000, pricing locals out of the market and forcing many out of the area. So, natives of the picturesque sailing town are overjoyed at this latest decision - which they said sets an important precedent for all coastal areas affected by second home ownership. Salcombe's mayor, town coucillor Jasper Evans, said: 'Salcombe's housing stock is under pressure from the number of second homes which is absolutely not a criticism of second home owners. 'They have invested massively in the town and we are tremendously appreciative of everything they contribute. To be clear - we welcome everyone who loves Salcombe. 'In Salcombe, the permanent resident population has been in decline. We don't want that to continue. 'We want young people to stay in the town, work here, be part of the local economy and community. 'The town's year-round vitality depends on its permanent residents of all ages. So, the policy is that if you buy a new house, it has to be your main home. 'That doesn't apply to houses already built. 'This policy is certainly well-supported in Salcombe. It is in our Neighbourhood Plan and it's been introduced in many coastal towns, especially in the south west, who have also been closely watching this appeal. 'It was very important for us and I am sure other communities who adopted the principal residence condition will be equally pleased with this decision.' The properties are no longer listed for sale and the estate agents said they could not comment on why. MailOnline has contacted Valentine London for comment but the company appears to have gone into receivership as of May last year. Its directors are listed on Companies House as Andrew and Samantha Manning-Smith, with both appointed in May 2016. Mr Manning-Smith's LinkedIn page reads: 'Currently developing 15,000 sq ft on the water in Salcombe.' Meanwhile, Mrs Manning-Smith's describes her as a 'property owner in Salcombe' with the development 'now concluded and in the sales phase' - and her profile picture bearing the tag 'open to work'. Their accounts also show them both also currently working as co-founders of Targa Club as of August 2019, a private members' club for car lovers. Mrs Manning-Smith has regularly featured as a 'panellist on political and current affairs' on Radio 4, Radio 5 and Channel 4 with Anita Anand and Cathy Newman. She was asked to speak at the Conservative Party Conference by then-Prime Minister David Cameron in 2009. And she was put forward to stand as a candidate for the party in London's Richmond Park in 2007, missing out to Zac Goldsmith, who was MP from 2010 to 2016 and from 2017 to 2019. He served as Minister for Overseas Territories from September 2022 to June 2023 and is now a life peer. Mrs Manning-Smith has also won various business accolades, as a finalist in Business Woman of the Year 2006, invited to Buckingham Palace to meet the late Queen in 2007 as one of the 100 Most Influential Women In Business. Planning inspector Oliver Marigold said the drawbacks of letting Valentine London sell the flats without the primary residence condition would 'significantly and demonstrably outweigh the benefits'. South Hams District Council brought in this rule in its 2019 Salcombe Neighbourhood Plan as the town reached breaking point over the second homes issue. Salcombe had become the second most expensive seaside location after Sandbanks. This was no mean feat, given the Dorset seaside town has long been the playground of celebrities like football manager Harry Redknapp and chef Rick Stein. Permission for the four flats in Salcombe and a commercial unit at ground level below them - known collectively as the Brewery Quay scheme - was granted in 2020. The council says the developers were aware of the primary residence restriction throughout. Developers managed to flog the commercial space to a marine business. But the white elephant flats have still not sold, despite efforts to variously market them off-plan, after completion and at 25 per cent under market value. Valentine London has claimed this is because buyers see it as a risky investment, fearing the principal residence rule would make it hard to sell the flats on. But Mr Marigold did not agree: 'The main reason that the flats are not occupied is because of the marketing strategy, which I have found has not sufficiently explored all potential opportunities.' He said as far as he was aware, new dwellings granted permission in the South Hams area since the rule was implemented in 2019 have sold without any problems. The inspector added a lower price may yet pull potential buyers in. He also remarked: 'I do not accept the contention that the planning system entitles developers to expect a reasonable return from development or that the need for a return justifies non-compliance with planning policy.' Mr Marigold also said not upholding the rule would undermine its function - to 'redress the balance of an unquestionably high proportion of second or holiday homes in Salcombe'. 'Tourism is important to Salcombe, but the level of second homes and holiday lets is harming its vitality', Mr Marigold wrote. 'Policy H3 clearly sets out that new unrestricted market homes will not be supported, to meet the housing needs of local people and to strengthen the community and economy.' District councillor Mark Long has previously said, after the appeal was submitted: 'We need people living here full time. 'What we're looking for is to try and balance things out so that we actually have a vibrant, viable community.' If Valentine London won, all areas with principal residence conditions would be at risk 'right across the South West and around the country', he warned. 'And so I think it's important that we try and hold the line here.' Salcombe Town Council has previously echoed this sentiment: 'Nothing in any document submitted persuades us to waver from upholding the principal residence Policy SALC H3 which is and has been very clear: "New unrestricted market homes will not be supported at any time"... 'Many other parishes are protected by similar policies and any deviation would set a dangerous precedent in and beyond Salcombe. This policy must be vigorously upheld.' Salcombe is one of 12 parishes in the South Hams district, on Devon's south coast, which have adopted principal residency conditions 'to achieve sustainable communities'. Such policies have been adopted in other parts of the country too, like the coastal town of St Ives, Cornwall. A spokesperson for Salcombe Town Council has now commented, after this week's decision: 'This is more than just a planning decision. It's about keeping Salcombe a lived-in town throughout the year... 'We want our streets to stay alive all year round, the school well-used, neighbours sharing a coffee and local shops and services supported by residents who call Salcombe home. 'Other coastal communities which have a substantial visitor economy and many houses not permanently occupied have been closely watching this appeal. 'This decision helps reinforce the shared importance of protecting space for permanent communities in areas under intense second-home demand.' It added: 'We welcome everyone who loves Salcombe, whether you're here all year, some of the year or just visiting. 'What matters is that we work together to ensure Salcombe stays vibrant, resilient, and inclusive. 'Supporting principal residence new homes is not about exclusion - it's about keeping the heart of Salcombe beating year round and for generations to come.' Valentine London co-director Mr Manning-Smith, has previously been quoted as refuting the council's claims developers knew about the restriction when the homes were built. He said: 'This was the first primary occupancy restriction in Devon. 'When we applied for preplanning and planning the primary occupancy restriction did not exist. 'It also did not exist in the statement of common ground agreed with the council a month before the appeal. 'The point we were aware the restriction was requested to be applied by South Hams Council was on the day of the appeal. 'We have applied to remove the condition as the apartments are unsaleable at a proper price with the condition, which we told the inspector on the original appeal, and highly unlikely to be mortgageable. 'Despite numerous reductions in price and offers of incentives, the apartments have failed to find a buyer in the last three and a half years due to the condition on this site.'
The Sun
21-06-2025
- Business
- The Sun
Our posh village is now ghost town strewn with empty homes – we've slashed asking prices by £100k but no-one wants them
STUNNING homes in a charming riverside village are now unsellable, with demand "falling off a cliff" after a tax blitz on second homes. One homeowner was forced to slash £100,000 off the value of her waterside cottage in Cornwall - and still can't sell it. 6 6 6 Debbie Pugh-Jones lowered her asking price three times in 10 months and says the picturesque two-bed home is now priced the same as a small flat in a run-down area of some cities. She lives in the quaint Cornish village of Goland, near the millionaire's playground of Fowey - where Dawn French and Gordon Ramsay have previously owned homes. The 69-year-old listed the home for sale for £400,000 last August believing it would sell quickly as similar homes nearby sold for £425,000 during Covid. She says increased stamp duty brought in nationwide combined with Cornwall Council's decision to double council tax rates on second homes has scared off potential buyers. Tourist hotspots like Cornwall and Wales, a favourite for charming seaside getaways, have been embroiled in a "tax war" in recent years. Residents say they can't afford to buy houses where they grew up as city dwellers snap them all up, only to stay there a fraction of the time when they fancy a get-away. But local businesses say they can't survive without the revenue second home owners and holidaymakers bring in. Debbie warned that the area is in danger of becoming a 'ghost town' due to unsold properties that are now lying vacant. She told The Sun: 'When you come down that much in price you would expect to get a viewing but I've had three in nearly a year. "Nobody at all looked around between November and April. The seaside town of Newlyn in Cornwall has been dubbed as one of the 'coolest' places to relocate 'Double council tax won't affect the very wealthy but it will affect the middle class people wanting to buy a second home.' She added: 'The community is at risk of changing because some of the second home buyers in this village aren't happy to be paying double council tax. 'Around half of the houses in this village are second homes and the rest are retired people, there are very few people working in this village. 'It's making them struggle but even if they wanted to sell they wouldn't be able to. 'People living here used to work in farms and on the boats but all those industries are gone and the village doesn't have a school, it's not near a bus route and it doesn't have any amenities. 'I'm not depriving a first time buyer of a place to live because it's not the sort of house that would suit them.' Travel writer Debbie said she fell in love with the house in the village of Golant at first viewing in 2013 and bought it for £240,000. She used it as her main home and spent £30,000 on renovations. Our beauty spot paradise is being clobbered by '£35 tourist tax' – it's utter insanity & will kill all trade By Maleeha Katib LOCALS in a beloved UK beauty spot have voiced their fears over plans to introduce a nightly tourist tax. The picturesque mountains, limestone caves, and cascading waterfalls of Brecon Beacons have long been a magnet for visitors from around the globe. The Welsh government is planning to roll out a new 'tourist tax' across the nation, which has sparked fears over driving away visitors and the knock-on impact on local trade. The charge, which would be £1.25 per person per night for hotels, B&Bs, and self-catering accommodation, and 75p for campsites, could add £35 for a family of four staying a week in Wales. Critics say this will drive visitors away, crippling the rural economy. Ashford Price from National Showcaves Centre told Sky News: 'In an area like this, all we've got is tourism and farming – there is nothing else. It will be an absolute catastrophe.' But following the death of her mother last year, she decided to move closer to her son and two-year-old grandaughter in Bath, Somerset. She said: 'It had always been my dream to retire to the coast. 'It was the view that attracted me, the river view is nicer than the sea view because it is always changing. 'I paid a premium for it because I paid for the views but straight away I fell in love with it.' At the village pub - The Fisherman's Arms - landlord Nick Budd said second homes were just a fact of life in the village. The 32-year-old said: 'It's a hard one because not all second home owners are the same. "You have the holiday lets which are great for us, because when people come on holiday they want to eat out and drink in the pub. "Then you have the lock up and leave its and they are the ones that kill us. 'The overwhelming outcome of property price rises is young people cannot afford to buy a house in the village and that situation needs addressing. 'But I don't know whether double council tax is the way to do that.' Cornwall Council said it expected double council tax on second homes would raise £24million this financial year. Another UK holiday hotspot warns of tourist tax on all visitors – and urges its neighbour to do the same By Summer Raemason HOLIDAYMAKERS travelling to a major UK destination have been warned they may have to pay a 'visitor tax'. A debate has been sparked over whether or not to introduce a 'Tourist tax' in Cornwall and Devon - but officials say they can "certainly envision" it implemented. It comes as protests were held in Venice after the country imposed a similar fee on short stay visitors. Day-trippers will be charged €5 (£4.30) if visiting the historical Italian centre, the first to bill holidaymakers an entry fee, from today until May 5. Similar talks have also been held in Cambridge, Edinburgh, Bournemouth, Christchurch and Poole as tourists continue to flood the popular hotspots. Now Malcolm Bell, who heads up the tourism board in Devon, said there is a serious conversation to be had over introducing the same policy. As reported by Devon Live, he said: "It is a time to have the debate, not rush into action, engage with people and look at the art of the possible." He added: "We must make sure it is not burdened with administrative costs and helps to manage the situation we are facing and improve it." The same talks are already underway among various organisations in Cornwall from south west coastal paths to National landscapes. It agreed to charge an additional 100 per cent Council Tax premium on second homes from April 1 2025. Neighbours have even been encouraged to dob in those they suspect are second homeowners trying to dodge the extra tax. Cornwall - famous for its stunning coastlines, tranquil views and quaint villages - is the second home capital of England. Last year, it was reported that it has 9,425 properties used as second homes. But soon after the tourist tax introduction on April 1, Cornwall estate agents warned demand for second homes had 'fallen off a cliff' with more people looking to sell than buy. Bradley Start, from Start & Co estate agents in Newquay, said: "They've received these demands for twice as much council tax and that's prompted a lot of people to think about selling.' But Mr Start told the BBC he feared former holiday homes would not be attractive to people trying to get on to the housing ladder. He added: "A two bedroom apartment on a cliffside with a sea view but no amenities is not going to suit a first time buyer for price or what it can offer.' Last year, it was reported that people staying overnight in Liverpool will have to pay the "tourist tax" - which could raise millions each year. Another unlikely city considering a tax on visitors is Nottingham, where the council reckon bringing in a tourist charge could raise £1.7m a year. It says this could be invested in attractions to make Nottingham less about the night-time economy and more of a tourist destination during daylight. The City of Edinburgh Council is also introducing a five per cent visitor levy for overnight guests in paid accommodation from July next year. Meanwhile Manchester adds £1 per room per night for stays within the Accommodation Business Improvement District (ABID) zone. The Sun has approached Cornwall Council for comment. 6 6 6
