A proposal for state controls on second homes has involved all major political parties. It was commissioned by Labour Prime Minister Gordon Brown, produced by Liberal Democrat MP, Matthew Taylor and criticised by the Conservatives who believe it is a recipe for negative equity
The Tories say small print of the Government report today calls for intrusive new state controls on second homes. It includes the statement: “There is a case to be made for controlling (through the planning system) further conversion of full time homes into second homes and holiday lets.
“There is no clear evidence that second homes or holiday lets greatly affects affordability for local people... stopping the second home buyer would do little to make more homes available at an affordable price for local people”
The report calls for planning permission to be required to own a second home in rural areas, and calls for pilots to implement such a scheme. It explains such permission would be policed by councils, who would demand evidence of employment or car ownership documentation.
Such a move, say the Tories, will lead to negative equity in rural areas. If planning permission is required to sell a home, this will make it harder for primary home owners to sell a property, leading to a fall in price.
Conversely, second home owners would see their now-scarce properties rise in price due to the restricted supply, giving second home owners an equity gain.
There is also the prospect that town halls would use their controversial surveillance powers to enforce such permission, spying on people’s homes to see whether or not it was used as their primary residence.
Shadow Housing Minister, Grant Shapps, said: “There are many ways that we can address the undersupply of affordable housing in rural areas, such as through the creative use of Community Land Trusts.
“But requiring planning permission for second homes would be intrusive and difficult to implement. This report commissioned by Gordon Brown is a recipe for negative equity. The last thing the housing market needs at the moment is more government red tape.”
