Second home tax proposed for the likes of Burnham Market and Brancaster by West Norfolk Council

A new tax which could be levied on second homes would reel in more than £6.5million – with at least £1million coming from just two of our upmarket villages.

West Norfolk Council is considering bringing in the extra charge, which would double the amount of council tax paid on properties which are not principal residences.

In total, the changes could bring in £6.5million in tax revenue in the borough, with more than £650,000 coming from Brancaster alone and at least £400,000 from nearby Burnham Market.

The villages have some of the UK’s highest proportions of second homes, and the area is known as Chelsea-on-Sea for the large numbers of Londoners with holiday and weekend properties there.

Terry Parish, the leader of the borough council, is pushing for the tax change, saying the money could help the cash-strapped authority – which has a waiting list of almost 1,500 people in need of council housing.

But some locals are resisting the measure, warning that second home owners – who already contribute to the local economy – should not be penalised and should not be treated as a “cash cow”.

Similar charges have already been introduced by North Norfolk District Council and Great Yarmouth Borough Council.

SECOND HOME HOTSPOT

Under the change, the borough council would introduce a 100% premium on council tax on properties defined as furnished but not anyone’s main home.

The area is a hotspot for ‘blow-ins’, with nearly half of the homes in some villages owned by people not living there permanently.

Second home ownership has recently come under fire in some quarters, and has been blamed for contributing to a housing crisis due to taking up homes for locals while also pushing up prices until they are out of reach for villagers.

The borough council is currently grappling with 1,469 people on waiting lists for council housing as of November 2023.

However, the substantial income generated by the new charge is currently expected to be of little direct benefit to the villages themselves.

VILLAGES SHORTCHANGED?

As it stands, only £230,000 of the £6.5million raised in West Norfolk will go to parish councils, while the borough council’s share would only be slightly more at £440,000.

Norfolk County Council is set to be the biggest beneficiary, receiving 75.3% of the share (£4.9million), while the Police and Crime Commissioner would receive £930,000.

But leaders hope to push for a better deal.

Cllr Parish said: “Raising the council tax premium for second homes is a no-brainer.

“As a council, we are in need of a cash injection as like others we are facing rising costs.

“Along with other leaders, we will certainly look to negotiate a better share of the money, which can be put back into the communities from which it was raised.”

North Norfolk Council agreed to the changes in October 2022 – which could raise more than £8million a year – and members have already promised to push for more of this money to be retained and put towards affordable housing in the district.

Last month, Great Yarmouth Council followed suit, with the raised charges expected to generate £1.77million a year – with just £152,698 coming back to the borough.

The second home premium has come under fire, with some fearing it could harm the businesses that rely on seasonal trade from wealthy out-of-towners.

“IT’S NONSENSE”

Cllr Dennis Clark, Burnham Market Parish Council’s chairman, believes the levy is misplaced.

“I think it is total nonsense. What we should be doing is taxing the furnished holiday lets, which currently only have to pay business rates,” he said.

“We welcome second home owners, who contribute to the village and local economy. But holiday let owners benefit from all the services delivered by the parish council while not contributing anything.”

Cllr Clark has been lobbying MPs and council leaders to push for this change.

Cllr Parish also acknowledged this was an issue, and is worried the council tax premium could lead to some second home owners changing their property to a holiday let to exploit this loophole.

Councillors will vote on the measures late this month, which would not come into effect until April 2025.

But the tide is already turning on second homes in the region.

Locals in Burnham Market recently delivered their verdict on the issue at the polls, with more than 80% voting to ban people buying up new builds as weekend retreats in their community.

Prospective owners will now have to prove it will be their principal residence or else they will be blocked from purchasing a property.

Other villages that have also agreed to these changes, or are considering doing so, include Heacham, Blakeney and Old Hunstanton.