Latest news with #secondhomes
Daily Mail
3 days ago
- Business
- Daily Mail
The double council tax loophole that will cost councils £334million - as locals in second home hotspots 'pay the price'
Second home owners dodging the double council tax bill is set to cost local authorities £334million. Since April 1, local authorities have been able to charge a 100 per cent premium on second homes under new powers introduced in the 2023 Levelling Up and Regeneration Act. In Wales, they can charge premiums of up to 300 per cent. However, crafty property barons found a loophole which allows them to dodge paying their taxes by classifying their second homes as holiday lets and renting them out for 70 nights of the year. The tax dodging move means the properties qualify for business rates relief and also makes owners exempt from paying any council tax at all. In the past year, the sum of lost council tax revenue has doubled from £170m, according to research by property firm Colliers. Now, politicians and experts say the soaring figures prove the 100 per cent premium tax raid is doing more harm than good. Shadow housing minister Kevin Hollinrake critiscied the Government for their backfiring tax raid. 'Labour couldn't even be bothered to carry out any impact assessment, nor have they asked councils to restrict the policy to where there are localised problems in the housing market,' he said. John Webber, of Colliers, said it's 'making the situation even worse' and pointed out that 'less money will be collected locally' which will result in less spending on things locals actually need, such as public services or affordable housing. He added: 'The problem is not second home owners; it is politicians failing to understand the issues and having the courage to do something about it.' A whopping 230 out of 296 councils in England, and 20 out of 22 in Wales took the Government up on their offer and imposed the inflated levy. To be considered a holiday let, owners must make their property available for at least 140 nights and actually let it out to visitors for 70 nights in one year. In order to work out the business rates bill an owner pays, the council uses the property's rateable value which is based on its type, size, location and how much money they would make renting it out to holidaymakers. If they only let one property then they may qualify for small business rates relief which could see them offered up to 100 per cent relief. Properties with a rateable value of £12,001 to £15,000, will see the rate of relief go down gradually from 100 per cent to 0 per cent. For example, if the rateable value is £13,500, the owner will get 50 per cent off their bill. There are an estimated 73,838 holiday let properties that qualify for business rates relief in England and Wales. This is down from 80,000 last year thanks to tougher restrictions but Colliers expects numbers to shoot up again due to the double tax raid. Before 2023, property owners just had to declare an intention to use their home as a holiday let to meet the business rates relief qualifications.
Telegraph
3 days ago
- Business
- Telegraph
I've lived happily on the Isle of Wight most of my life – the second home tax will change everything
Over the years, I have rarely been able to answer the question 'where are you from?' without the response falling into three common categories. I'm asked if you need a passport to get there (no); they tell me how nice it must be to not pay tax (wrong); or someone says fondly that they 'simply love the island' (they've only been to the boujee restaurant The Hut, or a music festival). The follow-up question is usually about what it is like to live in a holiday hotspot such as the Isle of Wight. The answer is, of course, brilliant. My home town is bustling with funky boutique shops and exciting restaurants, crime rates are low and the sheer number of brilliant attractions means that as a family with a young child, we are rarely short of things to do. This is before you even begin to talk about the great outdoors. There is an underlying trepidation, however, that the way the Isle of Wight ticks along is going to change. That the current balance of tourists and residents, and the money that they spend here, is going to shift. That soon, the independent shops, family restaurants and tourist attractions that we love may struggle. Since April, local councils have had the power to charge a council tax premium on second homes. In England, the maximum is 100pc, and the Isle of Wight council has opted for the maximum. It means that second home owners will pay between £3,155 and £9,500 a year in council tax for their properties.
Daily Mail
3 days ago
- Business
- Daily Mail
EXCLUSIVE Calls for 'second homes' row union leader to quit as MoS reveals she has FIVE houses (and a £100k plot of land!)
The top union boss at the centre of a 'second homes' hypocrisy storm is facing calls to resign after it emerged she is sitting on a property empire worth £1MILLION. The Mail on Sunday can reveal Roz Foyer – who has repeatedly condemned second home ownership – has a total of FIVE houses, as well as a £100,000 plot of land. In a dramatic escalation of the hypocrisy row which has engulfed the general secretary of the Scottish Trades Union Congress (STUC), The Mail on Sunday has discovered two further properties in her portfolio. They include a flat in Edinburgh, a terraced house in Glasgow and a plot of unused land which she bought just three months ago. It comes after we revealed Ms Foyer, who earns up to £100,000 a year, has a Spanish flat which she rents out for £1,000 a week AND a holiday cottage on Jura, as well as her four-bedroom family home in the leafy suburbs of north-west Glasgow. That is despite Ms Foyer publicly blaming second home owners for exacerbating the housing and cost-of-living crisis. Now, amid a huge backlash which has seen the trade unionist branded a 'champagne socialist' and 'a sangria-sipping one too', she faces growing pressure to resign. Scottish Tory leader Russell Findlay has questioned how she can continue in her role. He said: 'Scotland's leading trade unionist appears to have been more inspired by Donald Trump than Jimmy Reid. 'To secretly build a £1million property empire while railing against the supposed sin of second home ownership is hilariously hypocritical. Just another example of Scotland's self-righteous socialist establishment telling the rest of us how to behave – while doing the complete opposite. 'How Roz Foyer thinks she can continue in her role as self-styled workers' champion is a mystery and I expect her comrades might have something to say about it.' It comes after Mr Findlay joked on Friday that she clearly shared his party's values of working hard and reaping the rewards – and invited her to defect to his party. Ms Foyer was the first woman appointed to the top trade union job in Scotland and represents 500,000 workers. She has repeatedly spoken out about the impact second homes have on communities amid Scotland's 'housing emergency'. In July 2023, she called for a 300 per cent council tax premium on second and empty homes to tackle homelessness. Months later, she said: 'Scotland is facing a simultaneous housing and cost-of-living crisis putting an unbearable strain on working people. 'Second homes and short-term lets can have significantly negative impacts on communities, exacerbating these crises as well as undermining the local economy.' And in February 2024 she highlighted the number of empty properties and second homes in the Highlands, saying workers there faced 'an acute housing crisis'. But an investigation by The Mail on Sunday last week revealed Ms Foyer owns a property on the Isle of Jura with her husband, fellow union official Simon Macfarlane, which is valued at around £150,000. It comes after Holyrood last month heard how a proliferation of holiday homes was making life harder for public sector workers in Scotland – the very people that Ms Foyer claims to represent. Ms Foyer and Mr Macfarlane – a regional manager for the Unison union – are understood to spend most of their time with their two daughters at their Glasgow residence, which cost the family £280,111 in 2015. However, yesterday, the Scottish Daily Mail also revealed Ms Foyer has a holiday home in Spain that is worth around £125,000. Situated in the quaint harbour town of Puerto de Mazarrón in Murcia, the three-bedroomed apartment boasts a private balcony with panoramic views over the Mediterranean Sea and access to two communal pools. While they are not using the flat, Ms Foyer rents it out. A week's stay from June 18 to June 25 this year would cost around £920. Now, The Mail on Sunday can reveal Ms Foyer owns a further TWO properties. Official records show the trade union boss bought a terraced new-build in Glasgow in 2016 for £145,000. Additionally, she owns a 'light' and 'well-presented' two bedroom flat in Scotland's capital, which was bought last year for £240,000. Property brochures say the flat is in an 'ideal' and 'vibrant' location and has 'access to a residents' swimming pool, gym and sauna, a leafy view over a shared courtyard garden, and a secured and gated residents' car park'. The Mail on Sunday understands the properties are occupied by close friends and family. However, in a move which suggests the union official may be looking to expand her property empire even further, Ms Foyer purchased a plot of land in Glasgow for £100,000 in February. Ms Foyer last night defended her five homes, saying: 'I'm proud that the STUC has pushed for and secured a doubling of council tax on second homes and we remain committed to arguing for a proportional property tax. 'I can look in the mirror knowing that I'm actively arguing to increase my fair share to society. 'Fighting every day for fairer taxation and to spread wealth throughout the country brings its critics. 'As a woman from a working- class background, I won't be made to feel ashamed for legitimately owning property that my family and I, like of thousands of families across Scotland, have worked tirelessly for.'
Daily Mail
24-05-2025
- Politics
- Daily Mail
EXCLUSIVE Hypocrisy of a 'champagne' socialist! Top Scots union baron has holiday home on idyllic Jura - despite condemning 'negative' effects of second homes
Scotland's most senior union boss is at the centre of a major hypocrisy row over her ownership of a second home. The Mail can reveal that Roz Foyer, the General Secretary of the Scottish Trades Union Congress (STUC), owns two houses – despite publicly condemning the scourge of second homes. Ms Foyer, who earns up to £100,000 a year, has blamed second home ownership for exacerbating Scotland's housing and cost-of-living crisis. Now an investigation by this newspaper has sparked accusations of blatant 'hypocrisy' by the top union official – who oversees a coalition of 40 trade bodies across the country. We can reveal that Ms Foyer and her husband have a holiday cottage on the idyllic Isle of Jura, as well as their four-bedroom family home in the leafy suburbs of the north-west of Glasgow. The pretty two-storey stone-built island home, which is believed to be worth around £150,000, is situated in a tiny hamlet just a few miles from where George Orwell famously wrote his dystopian novel 1984. Earlier this month a Labour MSP told a Holyrood debate that a proliferation of holiday homes was making life harder for public sector workers – the very people that Ms Foyer claims to represent. Last night Scottish Conservative finance and local government spokesman Craig Hoy blasted Ms Foyer's double standards. He said: 'Hypocrisy is the religion of champagne socialism. We look forward to Roz Foyer's condemnation of Roz Foyer.' Stalwart trade unionist Ms Foyer was appointed to the top job in Scotland, representing 500,000 workers, in 2020. As the first woman appointed to the position in the collective's long history, she pledged to help tackle the stereotype of unions being only for blue-collar men and revealed her mission to amplify the 'working class' voice. Ms Foyer has repeatedly spoken out about the negative impact second homes have on communities. Defending the STUC's policy position set out in July 2023, that there should be a 300 per cent council tax premium on second and empty homes to tackle homelessness in Scotland, Ms Foyer wrote that it was time that the wealth in Scotland was shared. She said: 'We cannot ever hope to solve the chronic lack of housing, with the unforgivable levels of homelessness throughout the country, if the Scottish Government continues down this path of reinforcing rentierism. 'A premium on council tax for homes that are not in use, second homes and short-term lets would provide vital extra resources for local authorities, helping incentivise homes into use, raise revenue and bring down rents in the long term.' Months later, in December, she appeared to go further with her criticism of second home owners when she welcomed new Scottish legislation which gave councils the power to double council tax on second homes. She said: 'Scotland is facing a simultaneous housing crisis, a public sector funding crisis and a cost-of-living crisis putting an unbearable strain on working people. 'Second homes and short-term lets can have significantly negative impacts on communities, exacerbating these crises as well as undermining the local economy.' And in February 2024, in a newspaper column, Ms Foyer highlighted the number of long-term empty properties and second homes in the Highlands. She wrote that 'workers in the Highlands are facing an acute housing crisis' before adding that figures from the Scottish Government showed that there had been a nearly 670 per cent increase in long-term empty properties in the Highlands. However, despite admitting that second homes cause serious problems for rural communities, title deeds obtained by The Mail show that Ms Foyer bought a property on Jura with her husband, fellow trade union official Simon Macfarlane, for £45,000 in 2012. The pretty cottage enjoys a lovely spot on Jura which is known as one of Europe's 'last lost wildernesses' and boasts a small population of around 220. Similar properties on Jura have been recently valued at around £150,000. Ms Foyer and her husband, Mr Macfarlane – who is a regional manager for trade union Unison – are understood to spend most of their time with their two daughters at their residence on a private estate near Maryhill in Glasgow, which cost the family £280,111 in 2015. They visit the remote island, known for its peaty whisky, for family holidays, and are believed to have taken a trip as recently as last month. Locals have seen Ms Foyer and her family enjoying long strolls down Jura's beaches. Despite living in Glasgow, Ms Foyer is even part of the Isle of Jura Community Group on Facebook and has offered out old wellies and jigsaws to residents. The issue of second homes was debated in the Scottish parliament earlier this month during a motion brought by Ross Greer of the Scottish Greens. The discussion heard concerns that a high concentration of second homes has caused house prices and rents to rocket and reduced the housing supply for local people. Scottish Labour MSP Carol Mochan said that holiday homes were making it harder to recruit and retain public sector workers. She said: 'A lack of affordable housing affects not only individuals and communities but local businesses that want to attract workers. 'Very importantly, a lack of affordable housing also affects the recruitment of public sector workers.' She continued: 'I have strong evidence of that from the Borders area of my South Scotland region. 'Trade unions have told me that people are not coming to work in the area or are having to travel a long distance, which sometimes involves a journey of an hour or more, to get to their work. 'That is not sustainable. The Health, Social Care and Sport Committee has heard compelling evidence on the issue, in oral evidence and on a visit to the islands. 'The health boards have described the situation as a crisis for service delivery. It is a very important issue.' However, a spokesman for the STUC last night said: 'The General Secretary has been transparent and clear on our position of increased taxation for those with assets. 'She fully supports that policy and, as such, willingly advocates and holds herself accountable for the additional taxation it would incur.'
Irish Times
22-05-2025
- Politics
- Irish Times
Mayo housing official apologises for ‘distress' caused by holiday home boycott proposal
A Mayo County Council housing official has apologised for 'any concern or distress' caused by his proposal to boycott holiday homeowners. In a statement released by the council on Thursday, Tom Gilligan, director of services with responsibility for housing, said he is 'deeply committed to addressing the complex housing challenges facing Mayo and to working collaboratively with councillors, stakeholders, and the community in doing so'. He said he circulated an email to 'prompt internal discussion on a sensitive but relevant issue' and he did not anticipate it would be released publicly before members of the council's strategic policy committee had a chance to consider it. His proposal was circulated to the committee after it met last week and its members asked the council to examine ways to activate vacant homes for use. READ MORE Mayo County Council provided a statement on the issue on Wednesday. However, it released an updated statement on Thursday saying it wanted to highlight its 'sincere regret' for 'upset' caused to local elected members, the public and, 'in particular, owners of second homes in Co Mayo'. A council spokeswoman said the proposals were not intended for publication but were 'exclusively intended as an internal discussion document'. Despite the council's earlier statement seeking to clarify the issue, she said, 'a lot of confusion and disquiet remains evident'. She said the local authority is 'not aware how this email found its way to the media'. 'Had the correspondence not been released to the media prematurely, the matter would have been considered by the members of the [strategic policy committee] in the normal way and evidently would not have progressed any further,' she said.
