The Government announced it will examine proposals for a change in Council Tax law for Britain's 328,000 second home owners. A change in the categorisation of Council Tax charges could see second-homes being taxed at a higher rate than first homes.
The idea is designed to curb rising house prices and a shortage in affordable housing in rural areas. It is being considered by the Affordable Rural Housing Commission, which will report next month.
The proposals have been drawn up by the Commission for Rural Communities and would need the creation of a national register of second homes.
There has been growing support for action to curb second home ownership in rural areas and to make them a less desirable luxury. With high house price levels and limited available social housing, people are being priced out of the rural districts that they grew up in, with a devastating effect on those communities.
Fourteen more councils have asked to develop housing Private Finance Initiative (PFI) schemes to build more social rented homes as part of a drive to regenerate their local communities.
Nine new build schemes and five decent homes and local regeneration schemes have been submitted as expression of interest bids to the fifth bidding round. The outcome of successful fifth round bids will be announced in the summer.
Sandwell Council and Riverside Housing signed a £203 million PFI to regenerate two West Midlands communities. The 25-year deal will include refurbishment, demolition, and new build. The contractor partner is Mansell Construction Services. Riverside will provide management and maintenance services.
