New Bill Aims to Crack Down on Second Home Owners in North Cornwall
A new bill proposing a law change aimed at second home owners looking to "dodge council tax" has been presented to parliament by North Cornwall MP Ben Maguire. The bill, dubbed the "Airbnb Bill", proposes that homeowners be required to seek planning permission before short-term letting their property.
According to the BBC, the bill aims to "close a loophole" which allows property owners to avoid council tax by reclassifying their second homes as business lets. Mr Maguire said the bill would "deliver deep change for North Cornwall" and "restore fairness in our system and give local people a better chance at owning their own home".
The bill has been welcomed by John Brown, CEO of Cornwall Chamber of Commerce, who said it "was not a silver bullet, but a start". He added that it must sit alongside tougher regulation and a robust registration system for short-term lets. "If it deters those looking to extract profit from Cornwall without putting anything back — good," he said. "If it helps restore housing stock for local people, even better. And if it ensures our hospitality and tourism sectors can find workers with secure housing, then it’s a win for all of Cornwall."
The BBC reports that there are 14,000 second homes in Cornwall, while 22,000 people are on the housing waiting list. Mr Brown described a "surplus" of Airbnb homes, saying that the bill could help to address the issue.
In January 2023, Cornwall Council approved plans for owners of second homes in the county to be charged double council tax. The move was aimed at discouraging second home owners from avoiding paying their fair share of tax. Airbnb has also called for Cornwall Council to be given more data, powers and tools to regulate short-term rentals.
However, Carl Thomson, public policy manager for Airbnb in the UK, said that the bill could have unintended consequences. "Calls to impose restrictions, red tape, and fees only protect hotel chains’ profits at the expense of local families," he said. "The vast majority of hosts on Airbnb are everyday people renting their place casually to make a little extra money." He added that a "typical host" in Cornwall shared just one home for fewer than three nights a month, while Airbnb travel boosted the Cornish economy and provided jobs to 3,500 people in the area.
A Ministry of Housing, Communities and Local Government spokesperson said that the government recognised the "excessive concentrations" of second homes and short-term lets could "price out local people and damage public services". The spokesperson said that the government had scrapped the furnished holiday lets tax regime and that councils now had powers to increase council tax bills of second homes. They also confirmed that the government was "committed" to introducing a national mandatory registration scheme for short-term lets.
The BBC reports that before a short-term let can be assessed for business rates, it must first have been available for short-term letting for at least 140 days in the previous year, and actually let for at least 70 days in the previous year. The new bill aims to address the issue of second home owners avoiding council tax, and it will be closely watched by those interested in housing policy.
According to the BBC, the bill is part of a broader effort to address the housing crisis in Cornwall. The county has been struggling with a shortage of affordable housing, and the proliferation of second homes and short-term lets has exacerbated the problem. The bill is seen as a step towards addressing the issue, but it is unclear whether it will be successful in achieving its goals.
The issue of second homes and short-term lets is a complex one, and it will require a comprehensive solution. The BBC reports that the government is committed to introducing a national mandatory registration scheme for short-term lets, which could help to address the issue. However, it remains to be seen whether the bill will be successful in achieving its goals.
As reported by the BBC, the bill has been welcomed by some as a step towards addressing the housing crisis in Cornwall. However, others have expressed concerns that it could have unintended consequences, such as driving second home owners underground. The bill will be closely watched by those interested in housing policy, and its success will depend on its implementation and enforcement.
In conclusion, the new bill aimed at second home owners in North Cornwall is a step towards addressing the housing crisis in the county. The BBC reports that the bill proposes to require homeowners to seek planning permission before short-term letting their property, and it aims to "close a loophole" which allows property owners to avoid council tax. The bill has been welcomed by some, but others have expressed concerns that it could have unintended consequences. The success of the bill will depend on its implementation and enforcement, and it will be closely watched by those interested in housing policy.
