Norfolk councils to get nearly £3m for second home villages
Extra money raised will be used to support affordable housing and homelessness services in the areas affected
Nearly £3m is to go towards communities in Norfolk that have been “hollowed out” by second homes after crunch talks were held over the share of money raised from a new levy on such properties.
It follows months of negotiations between district council leaders, who have been lobbying to get a larger proportion of the cash generated through new tax rules.
Great Yarmouth Borough Council, West Norfolk Council and North Norfolk District Council are set to benefit from the £2.89m share, which will go towards projects to support affordable housing and homelessness services in the areas affected.
From April, second homeowners are set to face higher council tax bills through new rules being introduced that allow councils to charge a 100pc premium on properties that are not used as permanent residences.
Previously, districts were due to get less than 10pc of the £11.56m that is expected to be generated a year through the levy because of how council tax is shared.
District council leaders said this was unfair and that more money should go to the communities most affected, which are predominantly found along the Norfolk coast.
Critics say second homeowners have “hollowed out” villages and have pushed prices of properties up, leaving locals unable to afford to live there.
The highest proportion of second homes are found in west Norfolk and north Norfolk, in villages and towns such as Brancaster, Burnham Market and Wells.
Under the new agreement, 25pc of the revenue will be set aside to support housing and other local services such as roads and social care in these areas.
NNDC is to be the biggest beneficiary and will receive about £1.7m a year through the second home premium, while WNC will gain £950,000 and GYBC £240,000 a year.
Tim Adams, leader of North Norfolk District Council said: “This money will be used to the absolutely best effect to help us contend with the biggest challenge we face at the moment, which is financing the provision of support for people with an acute and immediate need for temporary accommodation and the wider issues around housing and homelessness in our district.”
Carl Smith, leader of GYBC said the cash is “vital new money” for the borough while Alistair Beales, leader of WNC called the agreement a “pragmatic win-win”.