York second homeowners to pay double council tax

Councillors hope the 100% premium tax will bring an extra £740,000 for local services and housing in York

Second home owners in York will have to pay double the amount of council tax after councillors agreed to a proposed 100% premium.

Councillors hope it will encourage people to sell or rent out their second homes to help local residents struggling to find housing.

They think it can bring an extra £740,000 for services and housing.

Councillor Stephen Fenton said the city "cannot afford to have large numbers of homes lying empty".

A City of York Council meeting on Thursday heard 429 properties in 2020-21 were second homes, which were in use "for less than 70 days" and not rented out during the remainder of the year.

In a report, councillors said the number of second homes in the city was having a "negative impact" on supply and residents were being "priced out of the housing market".

Mr Fenton said the 100% council tax premium would "go some way to rectifying this injustice".

Councillors said the authority "desperately" needed more powers from the government to address "loopholes" in which second home owners could avoid paying the council tax premium, such as classing their properties as holiday lets, which qualify for business rates instead.

Currently, properties only need to be available to let for more than 20 weeks in a year for owners to access business rates.

Under the new rules, which come into effect from April 2023, holiday lets must be rented out for a minimum of 70 days a year to qualify for business rates, which often brings financial advantages, and owners must provide proof of this.