Housing, and in particular its affordability, has been a feature of life in Cornwall for many years.
The recent Covid-19 pandemic has made these problems worse, and have lent weight to the campaigns that Cornish MPs have been working on for some time to restore parity to the housing market.
While Cornwall Council as the local authority has been taking admirable steps to resolve both the short and long term issues that lead to homelessness in the area, since the new Conservative Administration took control in May 2021, in particular with the use of temporary pod housing to help those who need it, there is more to be done across the housing market.
One area is exercising more control over second homes, an over-abundance of which can see small communities such as we have in Cornwall turned into ‘ghost towns’ out of season.
We recently saw the Government launch a review into the effect of short-term holiday lets, which will seek to improve the holiday letting market for those living in popular tourism destinations.
The scheme proposed in the government review could involve physical checks of premises to ensure regulations in areas including health and safety, noise and anti-social behaviour are obeyed.
Further measures the Government is considering include a registration ‘kitemark’ scheme with spot checks for compliance with rules, a self-certification scheme for hosts to register with before they can operate, and better information on legal requirements for providers.
Participants are invited to share their experiences so that the Government can better understand the impact of short-term holiday lets in England following the rise of rental booking websites and apps.
This review is a step in the right direction and will give us a better understanding of how short-term lets are affecting the housing supply in tourist hotspots such as Truro and Falmouth. I support responsible short-term letting, which brings investment into our local communities. However, we have a significant housing crisis in Cornwall. We cannot continue with a situation where sky-high second home ownership and short-term rentals push house prices beyond the means of many residents. I encourage everyone with views on this issue to participate in this call to evidence so that we can help the Government tackle this vital issue.
As well as this, the recent Queen’s Speech, the legislative address that sets out the Government’s programme of new laws scheduled for the current session of Parliament, contains an act giving new powers for local authorities in England, like Cornwall Council to be able to double council tax on unused second homes to boost funding for local services.
This is something I have long-campaigned for, both during my time as MP for Truro and Falmouth but also when I was a Cornwall Councillor. Having been an elected representative at both levels of government I fully understand how beneficial it would be for local authorities like Cornwall Council to be abler to have these powers, which will generate income that can then be put direct into running and improving local services. This is an argument I have been making, along with my Cornish MP colleagues, for some time.
The powers announced in the Queen’s Speech will give councils the ability to levy a premium of up to 100% on council tax bills for second homes – which are furnished but not occupied as a sole or main residence – empowering them to determine how best to raise additional revenue for their communities.
It has also been confirmed that another big issue that we have in Cornwall, empty homes, will be addressed, as homes left empty could also see their standard council tax rate doubled sooner – after 12 months rather than two years – in a move that will discourage owners from leaving properties vacant for a long time, while injecting money back into local areas.
In addition to having the power to apply greater premiums at a level of their choice, Local Authorities will enjoy flexibility on how to spend the funds raised and can decide to prioritise keeping council tax bills low for local households. This will also help deliver the infrastructure that communities really need, including genuinely affordable housing, social care and children’s services.
Along with the announcement of the closure of the holiday let business rates loophole earlier this year, I am pleased to see this Government once again listening to concerns raised from Cornwall and committing to take action. The growing numbers of empty homes, many of them second homes, across Cornwall, are a legitimate concern when it comes to keeping our communities vibrant all year round and I hope you will agree with me that this is good news for us all.