Second homes tax in Norfolk must be ring-fenced for locals, say campaigners

Seaside resorts and holiday destinations risk becoming "dead towns" if money is not spent providing homes for people living and working in the local area, a charity warns.

Councils across the East of England including North Norfolk, King's Lynn & West Norfolk, East Suffolk, Babergh and Mid Suffolk are introducing or looking at introducing new charges for second home owners.

But Lynne Burdon, chairwoman of Homes for Wells, which rents out homes to local people in Wells-next-the-Sea in Norfolk, said unless the charges are used for providing local homes, the communities are in danger of losing key workers.

Outside central London, North Norfolk has the highest level of homes either lying empty or infrequently used in England.

Of its 55,000 homes, nearly 6,000 are either second homes or long-term empty homes, which are defined as unoccupied and largely unfurnished.

The district has more than 2,500 households on the council's social housing waiting list.

They are looking for a rented property in an area where the average cost of a house is £290,000 and average gross weekly earnings for full time workers is £587.

From April 2025, North Norfolk District Council, whose coast also includes Sheringham, Cromer, Happisburgh and Horsey, is to use new government powers to charge an additional 100% Council Tax premium to second home, furnished properties.

Homes for Wells describes itself as a "charitable community benefit company" that aims to provide affordable rented housing for local people.

Ms Burdon told BBC Politics East: "There are... people wanting to retire here, people who want to live here now they have flexible jobs in London, second home owners and holiday lets.

"It has pushed house prices out of the reach of working people."

She did not think the extra charges would put second home owners off as "they can probably afford to pay it".

"It could have an impact if the money was ringfenced for the area it was raised. In Wells there are probably 400 second homes and that would probably raise £1m," she said.

"I'd like that money spent on providing affordable homes for local people to rent. If not we will lose our people and become a dead town."

Wendy Fredericks, the Liberal Democrat council's deputy leader and portfolio holder for housing, said: "Any additional funds raised through a premium charge on second homes will help us to achieve our key goal of providing affordable homes.

"Currently North Norfolk District Council receives approximately 8p in every £1 generated via Council Tax in our district, the rest goes to Norfolk County Council and Norfolk Police."

Ryan Dunham, from Cromer, said he was renting a home from a member of his family.

On buying his own house, he said: "I can't see that happening anytime soon. It's a lot of money for a deposit. There are a lot of holiday lets here and not a lot of space for local people."

Megan Denton, who lives in a rented property in Cromer with her son Hugo, said: "Prices have risen a lot. A one bedroom house is at least £800 a month to rent. Buying here is really tricky too.

"People just seem to take and take. They have these homes which they don't live in which prevents people [like me] from moving.

"Doubling council tax would push people to not buy second homes and then leave them empty for half the year."

Sue Allen is the director of East Ruston Cottages, which has about 40 properties that are rented out along the Norfolk coast and on The Broads.

She said the charging on second homes policy was badly thought out and would damage the local economy.

"There's a large number of 'let' properties that have a restriction on how they can be used. They cannot be used for residential use," she said.

"Additionally the sort of properties that are being used for holiday rentals are not normally in the places that would be suitable for first time buyers - they are out in the country, in tiny little villages.

"They are not in places people choose to live."

Politics East is broadcast on Sunday, 28 April at 10:00 BST on BBC One and is available after broadcast on the BBC iPlayer.

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