Jump to content
House Price Crash Forum
Sign in to follow this  
SarahBell

Holiday Lets To Be Next Target Of Chancellor?

Recommended Posts

If war has been declared on BTL with the stamp duty excess going to communities blighted by second homes then surely (Does it only benefit second home owners?) - will second homes be targeted in a future budget?

What will they do next to make sure that holiday homes do not swamp out real communities? And is it too late for many parts of the country?

Share this post


Link to post
Share on other sites

The money raised from the 3% stamp duty hike (£60million a year) will go to local authorities in areas with large numbers of second home owners from outside of the area. This is for the councils to tackle the problem.

I read it in the autumn statement details.

Edited by workingpoor

Share this post


Link to post
Share on other sites

The money raised from the 3% stamp duty hike (£60million a year) will go to local authorities in areas with large numbers of second home owners from outside of the area. This is for the councils to tackle the problem.

I read it in the autumn statement details.

"tackle the problem"

What problem? It's lovely for second home owners and people who want to go on holiday there.

It's only crap if you live there all year and have to put up with noisy tourists changing over every weekend.

And what can they do?

Make better shops or schools? Better broadband?

Very few things will actually get local people back living there.

Edited by SarahBell

Share this post


Link to post
Share on other sites

I'm somewhat cautious of Osborne's motives. I don;t think he gives a toss about those on the sharp end of BTL(no mention of rental sector contracts reform), I think he is just doing some electoral maths and realises that the Conservative party runs out of road quite quickly if home ownership continues on its present course. Of course, the ease with which BTL can be taxed with impunity won't exactly be discouraging either. After all, it's not some piece of paper hidden under the bed, it's bricks and mortar. :D

In short I do not expect any holiday let stuff because I don't think he really cares much.

Share this post


Link to post
Share on other sites

"tackle the problem"

What problem? It's lovely for second home owners and people who want to go on holiday there.

It's only crap if you live there all year and have to put up with noisy tourists changing over every weekend.

And what can they do?

Make better shops or schools? Better broadband?

Very few things will actually get local people back living there.

Build more starter homes in these areas? Limited to Ftb's.

Share this post


Link to post
Share on other sites

I'm somewhat cautious of Osborne's motives. I don;t think he gives a toss about those on the sharp end of BTL(no mention of rental sector contracts reform), I think he is just doing some electoral maths and realises that the Conservative party runs out of road quite quickly if home ownership continues on its present course. Of course, the ease with which BTL can be taxed with impunity won't exactly be discouraging either. After all, it's not some piece of paper hidden under the bed, it's bricks and mortar. :D

In short I do not expect any holiday let stuff because I don't think he really cares much.

Its not whether he cares or not, its revenue raising.

I know what the OP means - holiday lets are very lightly taxed.

Holiday lets will come under the 2nd home changes.

Councils are, slowly, moving to higher ctax for holiday lets.

Me, personally, I think they need hey need to be taxed heavier.

Share this post


Link to post
Share on other sites

Its not whether he cares or not, its revenue raising.

I know what the OP means - holiday lets are very lightly taxed.

Holiday lets will come under the 2nd home changes.

Councils are, slowly, moving to higher ctax for holiday lets.

Me, personally, I think they need hey need to be taxed heavier.

Maybe it'll be left for local authorities to deal with via council tax etc- fair enough. Wouldn't disagree with the issues caused either.

It is amazing how many villages have been killed by the rise of holiday lets, the Lake District is a place which I don't really feel that I have seen in its prime as it seems to be lots of deserted villages rather than comminities. The affinity that others I know have for the region is partly built on what it was like several decades ago, and that has now passed as almost entire villages have been bought by individuals or companies to provide holiday accomodation.

Share this post


Link to post
Share on other sites

I'm somewhat cautious of Osborne's motives. I don;t think he gives a toss about those on the sharp end of BTL(no mention of rental sector contracts reform),

Red herring. Rental sector reform isn't his department and doesn't belong in a finance bill or speech.

FWIW, my impression is that it's happening gradually under governments of both colours. For example, deposit protection was introduced by NuLab then fixed to close loopholes by the Coalition after a court had scuppered the original on a technicality.

It is amazing how many villages have been killed by the rise of holiday lets,

Yeah, but that goes back a long way, and the "solutions" have often been worse than the problem. It's the origin of what some of us in the 1980s (perhaps even earlier) dubbed Rural Apartheid.

Share this post


Link to post
Share on other sites

"tackle the problem"

What problem? It's lovely for second home owners and people who want to go on holiday there.

It's only crap if you live there all year and have to put up with noisy tourists changing over every weekend.

You don't live in an area blighted by second home owners, do you?

The problem is real. Our area isn't as bad as some (e.g. West country), but when half (or more!) of the family homes in an area are just used on the occasional weekend by Londoners, then the whole area suffers badly. However much they contribute to the local economy when they are here (frankly, not much), the fact is that they are not here 90% of the time. House prices are bid way out of reach of local wages, ridiculously so in many areas. The local economy suffers if locals can't live there, schools close for lack of kids etc etc.

In a time of housing crisis it is obscene that people are allowed to hoard multiple properties with no penalty - we wouldn't allow it with food, another essential. I hope that this is just going to be the start of a punitive tax regime on 2nd homes - the next thing we need is an ongoing tax that will motivate some of the people who already have them to sell.

Share this post


Link to post
Share on other sites

You don't live in an area blighted by second home owners, do you?

The problem is real. Our area isn't as bad as some (e.g. West country), but when half (or more!) of the family homes in an area are just used on the occasional weekend by Londoners, then the whole area suffers badly. However much they contribute to the local economy when they are here (frankly, not much), the fact is that they are not here 90% of the time. House prices are bid way out of reach of local wages, ridiculously so in many areas. The local economy suffers if locals can't live there, schools close for lack of kids etc etc.

In a time of housing crisis it is obscene that people are allowed to hoard multiple properties with no penalty and be lightly taxed - we wouldn't allow it with food, another essential. I hope that this is just going to be the start of a punitive tax regime on 2nd homes - the next thing we need is an ongoing tax that will motivate some of the people who already have them to sell.

Coming from an area blighted by 2nd homes and holiday lets - actually coming from thelocal Parish worst affected - I know where you are coming from.

I have no moral stance on whether a person should be allowed to buy 2nd home or not.

I do have a stance on the light taxation of 2nd homes and holiday lets.

2nd homes should pay at least the 150% of local Ctax. There should be no discount.

Holiday lets should not get small business releif. They should be taxed at their rateable values.

My cousin lived next to a holiday home, or rather the street he lived on was bought up by holiday letters over a 10 year period.

Fcking hellish in summer. Small, 2 bedrooms houses, being rented by 4+ adulsts, who get p1ssed up and fight.

Share this post


Link to post
Share on other sites

You don't live in an area blighted by second home owners, do you?

The problem is real. Our area isn't as bad as some (e.g. West country), but when half (or more!) of the family homes in an area are just used on the occasional weekend by Londoners, then the whole area suffers badly. However much they contribute to the local economy when they are here (frankly, not much), the fact is that they are not here 90% of the time. House prices are bid way out of reach of local wages, ridiculously so in many areas. The local economy suffers if locals can't live there, schools close for lack of kids etc etc.

In a time of housing crisis it is obscene that people are allowed to hoard multiple properties with no penalty - we wouldn't allow it with food, another essential. I hope that this is just going to be the start of a punitive tax regime on 2nd homes - the next thing we need is an ongoing tax that will motivate some of the people who already have them to sell.

You missed my sarcasm. But the question still stands - what problem is he going to solve?

The fact there are no facilities for people to move back even if affordable housing was built

or

the fact there's no affordable housing

or

that laws would need to be bought in to ensure affordable housing wasn't used for holiday lets.

or

Sooth the problem by making second home owners pay through the nose for the privilege of destroying a village and community

I am fully aware of the school closures, the unaccountability of homes for local people. The village where I was bought up is having it's first major house building program since the 70s and it's still unaffordable for young people. I couldn't afford to live there as a young graduate or even now.

The houses being built will over burden the local school, there is no local doctor or dentist to worry about, but the local shop and pub might make a few more quid each year. The church has shared a vicar with three other parishes for a long time now. That'll not change.

You can't just build houses to build a community. It needs things like primary schools, extra GP places nearby, good local shops and for people to support the local village and not just use it as a sleeper unit.

Share this post


Link to post
Share on other sites

If people can afford the luxury of a second home, then they can afford to pay extra tax. They should not be allowed to buy property where there is a social need for locals to get housing.

Share this post


Link to post
Share on other sites

If people can afford the luxury of a second home, then they can afford to pay extra tax. They should not be allowed to buy property where there is a social need for locals to get housing.

But in many places (ie: Where Mr Ramsey wants to knock down a 4m house to rebuild a shiny one) there is now very little social need as the local population is no more.

There are places all over the UK where holiday homes are the norm.

Share this post


Link to post
Share on other sites

You missed my sarcasm. But the question still stands - what problem is he going to solve?

The fact there are no facilities for people to move back even if affordable housing was built

or

the fact there's no affordable housing

or

that laws would need to be bought in to ensure affordable housing wasn't used for holiday lets.

or

Sooth the problem by making second home owners pay through the nose for the privilege of destroying a village and community

I am fully aware of the school closures, the unaccountability of homes for local people. The village where I was bought up is having it's first major house building program since the 70s and it's still unaffordable for young people. I couldn't afford to live there as a young graduate or even now.

The houses being built will over burden the local school, there is no local doctor or dentist to worry about, but the local shop and pub might make a few more quid each year. The church has shared a vicar with three other parishes for a long time now. That'll not change.

You can't just build houses to build a community. It needs things like primary schools, extra GP places nearby, good local shops and for people to support the local village and not just use it as a sleeper unit.

In the longer term, local facilities will adjust to the local population - that's why they went, and over time I guess they should come back.

I agree though, it is probably too little, too late but anything that helps take the pressure off local prices will help, and round my way a lot of that pressure comes from London money. We are actually OK on local services. The issue really is that locals can only afford to live in Barratt new builds on the main road, with postage stamp gardens, whilst quiet neighbouring streets of detached houses with 1/4 acre gardens lie empty for 300 nights a year. It's not surprising that the locals get a bit narked.

Share this post


Link to post
Share on other sites

Red herring. Rental sector reform isn't his department and doesn't belong in a finance bill or speech.

FWIW, my impression is that it's happening gradually under governments of both colours. For example, deposit protection was introduced by NuLab then fixed to close loopholes by the Coalition after a court had scuppered the original on a technicality.

Yeah, but that goes back a long way, and the "solutions" have often been worse than the problem. It's the origin of what some of us in the 1980s (perhaps even earlier) dubbed Rural Apartheid.

Yeah, I mean in general regarding rental reform, not just in yesterday's speech. Maybe things will gradually improve as you say. hopefully.

Share this post


Link to post
Share on other sites

I would say the best way to deal with second homes is through council tax. I would double the charge for second home owners.

If the central gov money raised by SDLT is going to communities without truly affordable homes or facilities/services for locals then housebuilders will likely be incentivised by the government to build what's needed as well as the houses.

Agree this should have been tackled years ago but it's a step in the right direction to increase the SDLT on anyone buying a second home from next April.

Share this post


Link to post
Share on other sites

Mail article says 'anyone buying a second home..whether for holidays or to rent out..' will pay extra tax from Aproil 1st

At some point the Airbnb crowd will be targetted by HMRC.

Share this post


Link to post
Share on other sites

I would say the best way to deal with second homes is through council tax. I would double the charge for second home owners.

If the central gov money raised by SDLT is going to communities without truly affordable homes or facilities/services for locals then housebuilders will likely be incentivised by the government to build what's needed as well as the houses.

Agree this should have been tackled years ago but it's a step in the right direction to increase the SDLT on anyone buying a second home from next April.

I tend to agree.......often the holiday homes, bought or gifted are rented out to friends and acquaintances for a week or two at a time cash in hand.....left empty for weeks on end....tis true the people that use them bring some money to the area for a short period of time, but they are not counted as a resident of the area, but still many local working people are completely priced out, no way would a local job pay the local private rents without state assistance. ;)

Share this post


Link to post
Share on other sites

But in many places (ie: Where Mr Ramsey wants to knock down a 4m house to rebuild a shiny one) there is now very little social need as the local population is no more.

There are places all over the UK where holiday homes are the norm.

...good... even more reason they should pay more and help balance the economy.... :rolleyes:

Share this post


Link to post
Share on other sites

Many holiday homes are in areas where the only employment opportunities are tourism, so you need a mix of holiday homes and regular homes.

Chicken and egg.

I think the holiday homes/tourism forces out local employment and raises cost of living in places, forcing out more locals.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Next General Election   90 members have voted

    1. 1. When do you predict the next general election will be held?


      • 2019
      • 2020
      • 2021
      • 2022

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.