Tuesday, May 16, 2006

Second Homes Tax Recommended

Western Morning News: Tax on second homes looming

Second home owners in the west country should pay a new "impact tax" to reflect the damage they cause to rural communities, a Government-sponsored report will say this week. In a finding that will stoke the controversy about the growing number of second homes in parts of Devon and Cornwall, the Affordable Rural Housing Commission will warn that excessive numbers of holiday homes can "undermine the viability" of some rural communities.

Posted by vwphil @ 12:26 PM (2991 views)
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3 Comments

1. talking rot said...

An impact tax upon second (and tertiary) homes is either a good or bad thing depending upon your personal view of social justice. A second home owner would argue against the case, believing they have worked hard and deserve the right to buy a second home for investment or pleasure. I have known such people may be brash enough to claim that those who can't afford to buy are not deserving. In a civilised country, the wealthy should pay more tax then the less-well off. Second home owners benefit from asset price inflation and thus are more wealthy [OK - they have more asset wealth] and so should pay more tax. This impact tax would resolve the so called house-supply crisis as homes would be brought to the market and over supply would bring house prices down to a sustainable level. It should not be limited to part of the country. If done properly, then the owner of the house should pay the impact tax, NOT the occupier.

The idea that the wealthy should pay more tax does not happen in the UK, owing to a move from direct taxation to indirect taxation, which disproportionately affects the less-well off. Perhaps this concept should be restored. This idea should be supported across the country.

Tuesday, May 16, 2006 02:04PM Report Comment
 

2. Crashedoutandburned said...

Better than nothing, this impact said. That said, the real problem are not super-rich second home owners as they are too statistically few to make much difference to rural property values, but the new breed of holiday home owner using vast piles of borrowed cash and the 'equity' in their ordinary suburben south east houses. These new psuedo-rich are many in number and causing chaos in rural communities.

The only way to stop the rot is re-regulate the mortgage market thus deflating the bubble that allows all this nonsense to take place.

Tuesday, May 16, 2006 09:45PM Report Comment
 

3. Crashedoutandburned said...

Better than nothing, this impact said. That said, the real problem are not super-rich second home owners as they are too statistically few to make much difference to rural property values, but the new breed of holiday home owner using vast piles of borrowed cash and the 'equity' in their ordinary suburben south east houses. These new psuedo-rich are many in number and causing chaos in rural communities.

The only way to stop the rot is re-regulate the mortgage market thus deflating the bubble that allows all this nonsense to take place.

Tuesday, May 16, 2006 09:45PM Report Comment
 

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