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The Times: Government Plans Taxes On 2nd Homes

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http://business.timesonline.co.uk/article/...2137959,00.html

The Times April 17, 2006

Tax rise threat to second homes

By Valerie Elliott, Countryside Editor

SECOND homeowners in Britain’s favourite beauty spots face a new “absenteeism” tax under plans before the Government.
A new category of council tax is being planned for holiday homes that are left empty for six to eight months a year, with the result that many village and seaside resorts are turned into ghost towns during the winter months.
The Times has learnt that this proposed absenteeism tax is just one of a series of draconian measures that are expected to hit Britain’s 300,000 second homeowners. Other options include:
doubling or trebling council tax rates for all owners’ second homes;
creating a national register of second homes;
introducing a new business rate tax for second homes.

The Miracle Man giveth and he taketh away :lol:

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Well this has been predicted for some time :lol:

Does anyone have any clue on how long it would take for the government to make this legal? or even how far along the plans it will already be (if at all) to be leaked to the papers?

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Fantastic news!

This is pretty much what we've been suggesting for some time now.

- Absenteeism tax.

- Doubling or trebling council tax rates for all owners’ second homes.

- Creating a national register of second homes.

- Introducing a new business rate tax for second homes.

If they follow-through on these proposals I might even vote Labour in the next election. ;)

I just hope they don't back-down when this is enevitably demonised by the multi-home owners in the 3 big parties and (more importantly?) by the hoardes of BTL journalists manipulating public opinion.

[EDIT] Just spotted this :

There are exemptions, however, for people who need two homes for their work, such as MPs and essential workers.

You have to laugh...

Edited by HPCheese

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NuLabour are reading the papers and the problem of housing in the face of "Miracle Economy" policies that have encouraged 2nd home ownership is costing them a lot of votes. Its little wonder that they are leaking this to the press.

Time to bail out of 2nd homes quickly.

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Fantastic news!

This is pretty much what we've been suggesting for some time now.

- Absenteeism tax.

- Doubling or trebling council tax rates for all owners’ second homes.

- Creating a national register of second homes.

- Introducing a new business rate tax for second homes.

If they follow-through on these proposals I might even vote Labour in the next election. ;)

I just hope they don't back-down when this is enevitably demonised by the multi-home owners in the 3 big parties and (more importantly?) by the hoardes of BTL journalists manipulating public opinion.

I certainly agree with the doubling or trebling of council taxes for second homes. More income for local councils which can be put to good uses. (Of course it can also be p'ssed up a wall, but that's a different argument). And a strong disincentive to hold 2nd or 3rd homes.

Billy Shears

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The people holding 2nd homes probably don't vote labour anyway.

I am not so sure. After all the "Miracle Economy" has benefited the rich and greedy more than any government in history.

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There are exemptions, however, for people who need two homes for their work, such as MPs and essential workers.

I'm pleased they don't believe MPs count as essential workers then :lol:

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This is socalist clap trap. House prices are not too expensive because of a few people buying two of them.

Preventing the rich from taking their holidays in Cornwall or the lake district is beyond stupid. Make them sell these houses and they will just go to spain and spend their money there instead.

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This is socalist clap trap. House prices are not too expensive because of a few people buying two of them.

Preventing the rich from taking their holidays in Cornwall or the lake district is beyond stupid. Make them sell these houses and they will just go to spain and spend their money there instead.

If the rich want to visit Cornwall or the Lake District let them stay in a 5 star hotel instead of buying a house to price out the locals. 300 pounds a night in luxury for a couple of weeks is cheaper than owning a house in any event.

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This is socalist clap trap. House prices are not too expensive because of a few people buying two of them.

Preventing the rich from taking their holidays in Cornwall or the lake district is beyond stupid. Make them sell these houses and they will just go to spain and spend their money there instead.

Great then, let them £uck off to Spain and let the locals buy in their home towns.

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If the rich want to visit Cornwall or the Lake District let them stay in a 5 star hotel instead of buying a house to price out the locals. 300 pounds a night in luxury for a couple of weeks is cheaper than owning a house in any event.

Not everyone wants to stay in a hotel which is why people buy their own houses.

The whole pricing out the locals thing is rubbish as well. I was brought up in a place where I couldn't afford to buy a house now so I move somewhere else. Popular areas are expensive to live in, crap areas are cheap. This is just a matter of supply and demand.

The problem with housing istn't that a couple of places are expensive to live in, the problem is houses are generally too expensive. The government should stop propping up the property market in general instead of trying to poke a few regional bubbles with socalist tax meddling.

Great then, let them £uck off to Spain and let the locals buy in their home towns.

Well the locals will now be unemployed so won't have any jobs to do, unless you think everyone in Cornwall can go back to fishing or something.

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Well the locals will now be unemployed so won't have any jobs to do, unless you think everyone in Cornwall can go back to fishing or something.

Yes, of course, because so many of the tourists who visit Cornwall and the Lake District own their own houses there. That's why all the hotels are boarded up and derelict these days.

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Not everyone wants to stay in a hotel which is why people buy their own houses.

The whole pricing out the locals thing is rubbish as well. I was brought up in a place where I couldn't afford to buy a house now so I move somewhere else. Popular areas are expensive to live in, crap areas are cheap. This is just a matter of supply and demand.

The problem with housing istn't that a couple of places are expensive to live in, the problem is houses are generally too expensive. The government should stop propping up the property market in general instead of trying to poke a few regional bubbles with socalist tax meddling.

Well the locals will now be unemployed so won't have any jobs to do, unless you think everyone in Cornwall can go back to fishing or something.

Locals priced out as Cornwall is named No 1 property hotspot

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Well the locals will now be unemployed so won't have any jobs to do, unless you think everyone in Cornwall can go back to fishing or something.

What jobs would be lost? I doubt the second home owners outweigh the day trippers and regular tourists to resort areas, but getting rid of them might have other benifits. A loss of the NIM2ndBY protests might bring speed boats and therefore jobs back to Windermere, for example.

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SECOND homeowners in Britain’s favourite beauty spots face a new “absenteeism” tax under plans before the Government.
A new category of council tax is being planned for holiday homes that are left empty for six to eight months a year, with the result that many village and seaside resorts are turned into ghost towns during the winter months.

And how easy will it be for people to get around this law? A simple loophole would be to spend a weekend or a few days at the property once every couple of months to circumvent this law.

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And how easy will it be for people to get around this law? A simple loophole would be to spend a weekend or a few days at the property once every couple of months to circumvent this law.

It depends on whether the 6-8 months are unbroken periods or as a total for the year. It would take a lot of weekends to accrue six months worth of occupancy. I agree though, there will be plenty of loop holes big enough to fit an Airbus A380 through.

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Good, higher council tax to put towards affordable housing for the out priced locals..Should also have to pay higher capital gains tax...after all you buy a holiday home for the lifestyle benefits it gives you, not for investment purposes surely.

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It'll be interesting to see if they actually deliver on this.

It's actually a reponse to Recommendation 2 from the Barker Review of Housing.

Did you know local goverment has actually had the power to reduce council tax discounts on second homes by 10% since 2004.

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"A new category of council tax is being planned for holiday homes that are left empty for six to eight months a year"

....at last a faint whiff of common sense....

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I see nothing particularly different there to people brought up in London or the South East. No way I could afford a house where I was brought up - but so what, move somewhere cheaper.

Nothing different??

THE WAGES, PADDERS, THE WAGES

:huh:

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This is socalist clap trap. House prices are not too expensive because of a few people buying two of them.

Preventing the rich from taking their holidays in Cornwall or the lake district is beyond stupid. Make them sell these houses and they will just go to spain and spend their money there instead.

Are you sure that they actually spend much when they visit. Don't they arrive with their cooler bags full of Waitrose prepared meals and their 4X4's tanked up with ASDA cheap fuel?

p

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Not everyone wants to stay in a hotel which is why people buy their own houses.

The whole pricing out the locals thing is rubbish as well. I was brought up in a place where I couldn't afford to buy a house now so I move somewhere else. Popular areas are expensive to live in, crap areas are cheap. This is just a matter of supply and demand.

I take it you didn't have any older relatives who you need to take care of? Some of us can move, for others it's not so easy. Let's be absolutely clear, holiday home owners are far more deserving of criticism than BTL'ers because only holiday home buyers reduce the housing supply - and to hell with the people they displace.

Padders, how would you feel, if the French started to buy up holiday homes all over Britain, to the point that you could neither buy or rent here? Would you still feel that our big socialist governements shouldn't meddle, would you just trot off to Poland, content to be a victim of supply and demand again? Is it acceptable for one region of Britain to stuff up life in another, just because it has the money, yet a crime if Jonny Foreigner does it to Britain? Have you considered that in Kernow, you are Jonny Foreigner?

Without sounding like a racist, tell me why Londoners buying holiday homes in Cornwall is any more acceptable than the French buying half of the houses in Britain? Regions need protection from the vagaries of wealth just as much as nations do, and taxes and laws are the way to deliver this.

The problem with housing istn't that a couple of places are expensive to live in, the problem is houses are generally too expensive. The government should stop propping up the property market in general instead of trying to poke a few regional bubbles with socalist tax meddling.

Well the locals will now be unemployed so won't have any jobs to do, unless you think everyone in Cornwall can go back to fishing or something.

The reason areas like Cornwall support fewer jobs is primarily because of holiday homes, resulting in less demand for all the services that a fully resident population once required. In areas where holiday home ownership is now 50%, that means 50% fewer kids in schools (not including renters who have put off having a family), 50% less of pretty much everything that a service based economy requires, which means fewer jobs.

Holiday home visitors contribute next to nothing to the local economy - they don't even shop locally if they can avoid it; much happier to call in at Waitrose before leaving the SE. Given the way locals feel about them, I'm not surprised they don't tend to patronise the local pubs. There is deep, and justified, resentment. It's a tribute to the chilled out nature of the Cornish locals, that it has not yet turned ugly, as it did in Wales during the Meibion Glyndwr campaign.

Thanks to the internet, pretty much any service company can operate in the SW and some already do (e.g. the Met office shited to Exeter). However, property prices in the SW are currently a huge problem for any business thinking of locating there because it puts pressure on wages.

Edited by Geek Man

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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