Beach hut owners on Isle of Wight Council land are facing price rises of hundreds of pounds in their annual rents which could see the amount they pay double or even triple, generating the Council an additional £106,000 a year.
Currently, the ground rent is £308 a year, with some variations. Based on a new valuation of £162.03 per square metre, the figures would rise to between £608 and £1,296.
The proposed changes will affect 174 beach huts at Appley and Puckpool in Ryde; Gurnard; East Cowes; and Old Littlestairs in Shanklin. Those at Dunroamin in Sandown and Madeira Road at Colwell will be considered separately at a future date.
If approved, the sharp rent increase will be phased in over 3 years from next April to ease pressures and will be combined with more attractive 10 year leases to replace the current 3 year licences.
[A Facebook group has been established to allow Island beach hut owners to discuss these changes and other similar subjects – https://www.facebook.com/groups/2044015132530173/.]
The new arrangements will give owners greater long-term security and also make it far easier for them to cash in on their seaside huts if they choose.
The Council owns the freehold of the land on which the beach huts sit – and the huts themselves are owned by the current licence holders. Recently one at Puckpool, Ryde was sold on by a licence holder for £22,000.
Councillor Dave Stewart, Leader of the Isle of Wight Council has said:
“People with beach huts have an asset from which they can get great enjoyment and can potentially gain financially if they choose, and we are planning a fair and standardised market rent for the ultimate benefit of all Island residents.
“We have had a review of rent valuations to bring them right up to date – and remove current disparities between smaller and larger huts.
“The change from three year licences to ten year leases, will give more security of tenure and make the huts more marketable for the owners if they choose to sell.
“The income from a sale goes entirely to the leaseholder of the beach hut and not to the council, other than a small transfer fee – so they really can benefit financially.
“Beach hut sites are a key asset for all the Island’s residents not just the huts’ owners – and the rental income rightly goes into the pot to spend on all council services, and increases will mean more money in vital areas. This is part of our commercialisation strategy.”
Cllr Stewart has gone on to say:
“There have been anomalies in the charges for many years. In some locations beach hut owners have clearly benefited compared to others. The new rents will be a fairer and market-attuned approach,” said Councillor Stewart.
“Of course we recognise that beach huts have brought great joy and have much emotional importance for many generations of families – and we hope this experience continues.
“It is also well documented that beach huts in some mainland resorts have been sold for substantial amounts. There is clearly a market and many existing beach hut owners on the Island are sitting on potentially very marketable assets.”
More information can be found at https://www.iwight.com/azservices/documents/2780-07-18-Intented-Notice-of-Decision-beach-huts-v2.pdf.
