The second homeowner in North Yorkshire has been warned that he is facing a new council tax premium.
The new scheme, which comes into effect in April, doubles the second home council tax bill.
It is expected to raise more than £10 million a year, with the funds going to be used to tackle the county's important lack of affordable housing.
North Yorkshire Council was one of the first authorities in the country to announce plans for a 100% council tax premium for the second home.
Council executive members will discuss the housing initiative programme funded by revenue generated from premiums.
They will be asked to approve plans for the Affordable Housing Delivery Fund and the Local Housing Delivery Fund at their meeting on March 18th.
Councillor Gareth Dud, assistant leader of North Yorkshire Council, said:
“We will work closely with the government, which is responsible for assessing whether the property is the second home, maintaining a close check on the property, the second home, and therefore qualifies for the Council Tax Premium.
“This is a new policy, but it's something we're completely committed to and we'll make sure that homeowners who have to pay the premium do that in fact do.”
The initiative aims to use a second home in the community as many people acquire prices from the housing market in some of North Yorkshire's most desirable locations.
This premium could provide a multi-million pound boost to fund council priorities, particularly in areas affected by the affordability crisis.
Councillor Carl Less, leader of the council, said: “One of the biggest challenges we face in the county is the lack of affordable housing and we are committed to doing everything we can to allow people to live where they want.
“This is an important tool to raise much-needed funds, allowing hundreds of new, affordable homes to be developed and targets the North Yorkshire area where the property is most needed.”
Under the plan considered by the executives, a total of £42.4 million is expected to be generated from the council tax premium over the next four fiscal years.
The funds raised over the next four years will be committed to £12 million to the Affordable Housing Delivery Fund.
Over the same period, an additional £4 million will be allocated to the local housing delivery fund, and an additional £4 million will be allocated to support the development of community-driven housing.
An additional £4 million will be allocated as capital funds to develop “made-to-order, affordable homes” that include property adapted for people with disabilities and supported homes.
An additional £2 million will be spent on the scheme, including the regeneration project, with £4 million set aside to develop coastal supported housing schemes for people with complex needs with a history of rough sleep.
Approximately 540 extra affordable homes will be developed over four years, and a 20-bed support housing scheme on the coast is expected to be developed.
An additional £12 million will be used to develop a commissioning framework for supported homes.
Capital investments raised through Council Tax Premium are expected to deliver up to 400 new, affordable homes over the next four years.
