Taxing second homeowners on the Isle of Wight double could make the Island’s cash-strapped council more than £6 million a year, turning the wealthy into cash cows for the public purse.
It comes as the Government looks to introduce powers for local authorities — like the Isle of Wight Council — to apply tax premiums on second homes and empty properties.
As of last month, there were 2,787 second homes on the Island and 135 empty properties, figures from the authority show.
If introduced, owners of a second home would pay 100% more council tax, on top of what they already pay. That would see another £6,090,784 put in the council’s pockets.
Another tax premium could also be introduced for properties that have been empty for a year, in a bid to encourage more empty homes into productive use. That would bring the council £286,894 a year.
The council’s cabinet is looking to support the government’s plans at its meeting next week.
The authority cannot bring the tax premium in itself but has to wait until the bill (called the Levelling Up and Regeneration Bill) has been made law. The charges could then be enforced from April 2024.
The Isle of Wight Council is looking to introduce the tax premiums as approximately 15,000 households struggle to accommodate themselves in the local housing market.
Since the pandemic, the council said 80% of privately rented stock has become unavailable for long-term lets as well as an uptake in second home and short-term lets.
The authority has said second home ownership on the Island is recognised to have a negative impact on the availability of houses to meet local housing needs.
So take more from those that work hard and actually earn their income and for Council to waste and pay out again to a large number of lazy benefit druggies.( I’m not saying that’s all who need to claim benefits – we all know the type I mean).
Or our Government could just end mass illegal and unchecked legal immigrants coming to the UK who add to the number of people moving here to escape areas they no longer feel at home in to ease the housing crisis.
Every person that arrives in a dingy, doesn’t come with a home, BUT all of them will be in one in a very short time, and, as the arrivals are never ending, so the pressure on building our country into ruination will continue.
SEE the real problem why homes are short for the British people.
80% of privately rented stock has become unavailable for long-term lets, meaning many hard working people have been evicted due to no fault of their own.
All those agreeing out of jealousy that second home owners should pay double the council tax are morally wrong.
As these houses are oft only occupied for short periods of time per year, then their dustbins aren’t emptied so often nor are they adding to landfill so much.
How would YOU like it if I said YOU should all pay treble the council tax IF as most here do, you have children?
For they cost dearly by costly education fees, needing the doctors more often, having expensive playgrounds and equipment to be paid for etc etc.
YET the joke is, most who ‘have children’ don’t pay hardly ANY council tax as all subsidised unless earning over£50,000 pa.
Most pay next to nothing and gain free rent, so I suggest they PAY double
The shortage of housing and the unaffordable cost of housing on the island and other similar places are partially caused and very much exacerbated by the number of second homes, whether these are holiday homes or Air BnBs. You need children because we have an ageing population – especially on the island! You also need them to stay here or other young people to come here. They won’t if they can’t afford to live here or find anywhere to live.
This will only work to alleviate the housing shortage if the council use the extra 6 million to build social housing, I very much doubt that will happen.
I hope it doesn’t get spent on social housing.
I doubt many second home owners steal, vandalise, breed more clones to then need treble the amount of new homes built here in Sixteen short years as these clones start producing from puberty onwards.
Rather have an empty home than loud music, stench dope, screaming kids crude arguing parents and the obligatory barking neglected dog
“The authority has said second home ownership on the Island is recognised to have a negative impact on the availability of houses to meet local housing needs.” This is what the council are stating, therefore the money raised from charging second home owners 100% more for council tax should be used to provide social housing. To spend it on something other than social housing is going against their argument to implement the 100% increase in the first place, but hey ho we all know that will never happen as soon as they get their hands on the 6 million extra funding it will all disappear into the ether
Many social housing tenants work, they do not steal vandalise, smoke dope or play loud music as you state
Even if it does land them 6 million a year they will just find a way to spend it all and will still put council tax up for poor island residents who only have 1 house and make cuts to much needed services
So what’s new?. Taxing the go getters, risk takers who want a better life so that the feckless and spineless who need their hands held through out life can prosper. Council can save a lot of money by cutting benefits from the Isle of Wight breeding community lol.
80% of privately rented stock has become unavailable for long-term lets, meaning many hard working people have been evicted due to no fault of their own.
For once that seems like a good idea, but will the council have the bottle to do it.?
“Cash cows” seems like a rather loaded term for journalism 😉
It will affect only some “wealthy”, don’t worry – I will not be touched by this, because guess what, I spend my salary buying services and products here living here. Nor will any wealthy who rents out their property or short-term rental Ltds for tourists.
Only properties that are unproductive (vacant) or productive very little (2nd homes) will be charged… which, if you’re into free markets by Adam Smith and neoliberalism, is a completely valid thing to do as assets are primarily supposed to be doing something productive – need to encourage that!
If you’re more into socialism, you surely agree as well.
Hard to find economical ideology that would be against it 😉
This is a message to the iow council I have a house to rent. That is my second home. I will make a deal with you. you pay towards the repairs and insurance and all the yearly tests. Cover the lost rent when you get a bad tenant. I have been down this road.I lost sleep over it.but you will not.as you make the rules.on that note I will grab a beer.
Aww what a shame for you. Sell it then if it causing that much stress and worry, why should the council pay for repairs on a property you own??? If you keep the property up to a good standard, and vetted tenants properly, you wouldn’t have problems would you.
I bet you don’t look after you social owned home do you this person has more thumbs up than you. Jockey
Rental properties are not counted as Second homes.
Well they will be soon. You better sell quick then.
What about my caravan?
This will not affect rented properties cause the whole idea is to improve availability of the stock. You can chill out.
At last! – a sensible suggestion.
There are four second homes within five minutes of me that are used one or two weeks a year. It’s a crying shame. Second homers that come every weekend and the school holidays that’s different but for a few days a year why bother?
About time too. If we had locals being able to afford a home rather than renting out a damp, shoddy flat from a landlord the island would be better for it. All having a 2nd, 3rd or 4th home here does is increase the housing prices up locally, so the estate agents rake it in and over inflate the valuations. 100% increase for 2 homes increase and keep increasing more for 3rd and 4th homes. Will also stop the “I’m so much better than you” arrogance over here now too, mostly from the, so called “entitled”
You are atteempting to turn back the tide something that others have tried and failed to achieve, I do not care whether second home owners are charged double or treble it will not change anything,your believe that because someone owns one or two properties they are entitled whereas you are not,is unhealthy and not based in fact, if they choose to invest in property good luck to them, better than spending your money on drugs, fags and booze
I don’t smoke and I don’t drink, by choice. I spend my hard earned money on what I want. Thank you.
What good is taxing the rich to the homeless? Where will the money go? Hello?
not before time tax them hard
right,
also tax them more if their car is worth more then 4K
So anyone with an electric car should pay double road tax and car parking they clearly have to much money when others haven’t!. People who have money already pay higher tax etc. Some, some taking handouts waste on drug’s, alcohol and branded clothing and have kids when can’t afford,this country is too soft and should have harsher penalties – if in prison should be made to work for their keep or go without. Carry on and we will all loose out…..
Most of these holiday homes are also used to make money so why not
There is no indication from the council on what they will spend this new source of income on other than the worry they will pay of debts or use it on other vanity projects, those that are second home owners and as said only use it two weeks a year are not a burden on the island services.Where is the evidence that we need more housing, social or otherwise, if it is social it will make no contribution to the islands economy as social tenants are four times as likely not to pay council tax or a very reduced form of the same.
Seems the Tory Government are becoming more and more like a Labour Government each day.
Profit, has now due to pressure of the dim impoverished masses become a dirty word, when once is was seen as good for the whole country.
Now, unless a rich person, or profit creating company ‘gives’ it all to the breeding feckless, dim, lazy, sick, or just ‘unlucky’ they are classed as ‘the villain.
Yet some ‘muver’ having six children, but several different but absent sperm donners are hailed as ‘victims’ to be given everything for free.
This seems far ‘deeper’ than Tories buying votes from plebs, as they are losing their core voters.
With dingy beings adding to the decline daily, we are indeed destroying a once beautiful race of people
I’ve asked this before, if 15,000 households struggle to accommodate themselves in the local housing market, why are the Council offering homes here to people from abroad and from other Councils across the UK? It doesn’t make sense.
Maybe Echo’s reporter, Darren Toogood, could be asking that of the Council instead of copy and pasting PR handouts?
Don’t think it’s the answer to the problem. It doesn’t stop second home ownership and probably means the cost of holiday rents increase since second home owners need to cover these extra costs.
What’s the betting this WILL NOT include Isle of Wight councilors and government ministers that own a second home here. I smell corruption and cronyism one rule one rule already
So just to get this straight. If the rich sell their million pound homes at Yarmouth and Seaview, the local first time buyers will be able to afford to buy their first homes?
If the second home owners started using the facilities on the island that they already pay for, hospital, doctors, refuse collection, NHS dentists, police etc the council would need to raise the taxes to pay for the additional strain on the existing infrastructure.
It’s not just on the island that locals can’t afford to buy houses where they were brought up. If someone has worked hard to get to where they are, and wants to buy a second home then good for them.
When I finish paying my mortgage off why should someone tell me how to spend my wages
Great idea, I hope they can ring fence the money to provide social housing.
The need is even greater since landlords started evicting long term tenants to rent to air b & b, or sell as Second homes.
As the article says, 80% of privately rented stock has become Unavailable for long-term lets.
And of course in the last 12 years central government chose to slash funding to local authorities, causing a whole range of difficulties.
Anyone that can afford two homes can afford to pay more tax!
Caulkhead syndrome…
If they are holiday homes the owners will just charge the holidaymaker more to make up.for their loss, okay it benefits the council but hardly helps the people seeking accommodation. Holiday folk will always pay a premium to visit the island, looking at the ferries very few bookings left for August already,
There isn’t house shortage because overners have second homes on the island. Not like local first time buyers could afford a four bed detached in Seaview or Yarmouth….
In my opinion, if they can afford a second home then they should pay more Council Tax. Simples!
Families who can afford two cars should pay more road tax on their second car too?
Not the same thing, you can live in a car
No, not the same thing, just the same principle.
YET if I said those having children should pay treble the council tax to pay for their education, often at the doctors, costing us for play grounds and equipment, often vandalising compared with adults, YOU LOT would whinge.
Yet you happily will unfairly tax an empty home, NOT having its bins emptied, nor needing the Police, fire services anymore money.
SEE your jealous bias.
I have to fund your sprogs, so YOU fund my second home.
The idea in neoliberal economy is to induce people to make money productive. Having a second home that’s not used (rented out) is unproductive so government can raise taxes on unproductive measures (and lower them on productive ones, ISAs are a great example) to control that.
Plus today’s kids are future workers and voters. Obviously you want to educate them and have a solid psychological safety during upbringing.
No matter which bunch of inepts we all collectively vote for you can’t get away from the fact that we pay massively more Council Tax than neighbouring Hampshire. Abolish the IWC, rejoin Hampshire, job done!
Put the property in a trusted relative name or Wife on deeds of main home, husband on holiday home, no second home, job done.
Normal council tax on both properties, as it is now. Penalised for being wealthy
Wife x husband won’t work btw.
What about all the derelict hotels on Sandown sea front?
There are at least two problems with second homes, particularly on the IOW.
One they are occupied for a relatively low amount of days and the people that often own them will nearly always bring most things that they need with them, mainly groceries but thereby contributing nothing or very little to the community.
Secondly, by these people buying these properties it drives the cost of housing up for locals who are potentially hard working people but on the minimum wage and are priced out of the housing market.
This can probably have further effects of people moving back to the mainland and then causing a potential worker shortage, particularly in the care sector as the IOW has a higher than average elderly population.
Possibly an illegal discriminatory act.
If it does happen, there will be more people without homes.
Very short sighted proposition.
Think about it.
Discriminatory like the fact I pay higher taxes on my higher salary? Or how exactly illegal?
My understanding of the article written is of: cash strapped councils, followed by a some maths equations, leading to grand, simplistic expectations. What I see, is an employment opportunity in promoting/administering the scheme, the policy; perhaps an algorithm that generically applies a basic suite of regulations? Try challenging that? Either way and whatever the processional outcome, all manner of unexpected deliverables will surface; many, will be unrewarding, perhaps a few will? Good luck with that one!
So all the second home owners will sell up and buy properties abroad again. IOW’s tourist industry will shrink.
Maybe the properties can be converted to cannabis factories given the amount of it being smoked publicly on the Island…
Does that include all royal Palaces I doubt it rich bankers
Not before time, second home owners have destroyed many villages in the South West and driven prices out of reach of any locals as well as making small businesses unviable.
But the “local” selling their house, was pleased to profit from that inflated price.
Similar to the council house “right to buy” policy, that made many “locals” a tidy sum. Who subsequently sold and stopped complaining about unaffordable prices
about time, and it will rile the Isle of Wight gammon that blame foreigners haha been getting it too easy for too long!
Because of all past governments the housing stock is at such a shortage having a house stand empty when hard working people can not find a place to live is immoral. Second home owners are raising the house prices out of the reach of hard working couples. And this idea that someone with a lot of money is hard working and someone with little money is not it outrageous.
If there was enough housing stock I would have no issue with people having a second home. But currently, because of decades of miss management by the criminals of Whitehall, we do not have enough housing. Many things need to be done to fix the housing crisis, one of them is to get rid of second home owners.
This is crazy, everything opens soon, all extra jobs for holiday season, if you push holiday makers out & close these holes the economy here would crash, ppl are listening to corrupt councillors & believing this is the way forward. Once economy drops yes house prices may probably fall but then locals fit the bill for loss in revenue. Locals here are being set up for huge crisis that will hit them hard, don’t want holiday makers, but you want the jobs there money provide, seems 40 million investment on ferry is a complete waste of time then eh?