Coastal towns to share £3m from tax on second homes

Money generated from a council tax premium on second homes will benefit communities "hollowed out" by second homes, according to council leaders.

Great Yarmouth Borough Council, West Norfolk Council and North Norfolk District Council are set to benefit from a share of £2.89m, which will go towards supporting affordable housing and homelessness services.

From April, second homeowners are set to face higher council tax bills through new rules being introduced on properties not used as permanent residences.

Previously, districts were due to get less than 10% of the £11.56m expected to be generated a year through the levy because of how council tax is shared.

Following discussions with Norfolk County Council, the county council agreed to set aside 25% of the extra money it will get from the premium in 2025/26, to support housing and other local services such as roads and social care in these areas.

Critics also said second homeowners had "hollowed out" villages, pushed prices of properties up, and had left 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 along the coast, such as Brancaster, Burnham Market and Wells.

North Norfolk District Council is to be the biggest beneficiary and will receive about £1.7m a year through the second home premium, while King's Lynn and West Norfolk Borough Council will gain £950,000 and Great Yarmouth Borough Council, £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."

Great Yarmouth council leader, Carl Smith, said the cash was "vital new money" for the borough while Alistair Beales, leader of King's Lynn and West Norfolk called the agreement a "pragmatic win-win".

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