Lib Dems Slam Housing Minister for Jaw Dropping Naivety Over Second Homes (Devon and Cornwall Liberal Democrats)

Devon and Cornwall Liberal Democrats <info@devon-cornwall-libdems.org.uk>

Lib Dems Slam Housing Minister for Jaw Dropping Naivety Over Second Homes

July 4, 2006 6:50 PM

"There is no excuse for Government inaction when the gap between house prices and earnings in Cornwall has been totally distorted by second home ownership." Dan Rogerson is the Lib Dem's Shadow Housing Spokesperson

The Liberal Democrat MPs in Cornwall have today published a league table of official government statistics showing that Cornwall and the Isles of Scilly has the highest proportion of second home ownership in the country.

Cornwall and the Isles of Scilly, where 5.6% of all households are second homes, not only have the highest proportion but have only 2000 less than the whole of Wales. He has highlighted the massive impact on the affordability of homes for locals and the detrimental effect they have on local services and the viability of village schools.

Since 2004 rural local authorities, in areas especially affected, have made use of the powers to reduce council tax discount on second homes from 50% to 10% but the Affordable Housing Commission's report found that this made no tangible difference to the demand for second homes and that many local authorities were not directing revenues to provide affordable housing.

The MPs have released the table in response to recent comments from Housing Minister Yvette Cooper MP. Ms Cooper claimed that the existence of second homes was "not a significant factor affecting affordability".

Andrew George, MP for the West Cornwall and Isles of Scilly constituency of St.Ives, said:

"Second home purchases in areas like West Cornwall entirely dictate market price and conditions. The Minister has demonstrated a level of jaw-dropping naivety which merely demonstrates to constituents like mine just why the so-called "Metropolitan elite" are so out of touch with the reality of their lives.

"If the problem is so localised then why not give local authorities the power to begin the process of rebalancing the housing market and give locals a chance in those areas where they otherwise have none at all?

"For years successive Governments have spent hundreds of millions of pounds subsidising the wealthy to have second homes, through Council Tax and other concessions, while thousands of local families have been unable to afford their first home."

Dan Rogerson, MP for North Cornwall and Lib Dem Housing Spokesperson, said:

"There is no excuse for Government inaction when the gap between house prices and earnings in North Cornwall has been totally distorted by second home ownership. The Affordable Housing Commission Report gave detailed proposals and now the Government must act before rural communities experience further decline.

"Local Authorities need more independence to create their own affordable housing strategies, with central legislation to facilitate this, a policy the Liberal Democrats have long advocated. In addition our tax commission has recently proposed increased capital gains tax on second homes.

"The Government should stop setting up Commissions which they then ignore. These new figures show that the problem is urgent. The days of timid initiatives and more inquiries have to come to an end. It is time for bold action."

Second Homes League Table

County: Households: Second Homes: % of total No. of homes

1 Cornwall and the Isles of Scilly 238723 13,458 5.64

2 Cumbria 232165 7,906 3.41

3 Dorset 330126 10,540 3.19

4 Norfolk 378485 11,857 3.13

5 Devon 500971 14,813 2.96

6 East Sussex 355020 7,583 2.14

7 Northumberland 142080 2,805 1.97

8 North Yorkshire 383251 7,074 1.85

9 West Sussex 342542 6,266 1.83

10 Suffolk 308172 5,414 1.76