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| Can you Afford to Live in Cornwall? |
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Page 4 of 6 Since 2004, the Government has allowed local authorities to increase council tax payments on second homes from 50 per cent to 90 per cent. In South East Cornwall, most of the money raised from increased council tax on second homes goes to Cornwall Council. The Council currently passes 75% of its share to district councils, like Caradon, on condition that both this and the district share is spent on the provision of affordable housing. It’s a scheme that makes a great deal of sense, especially in Cornwall with such a large and increasing proportion of second homes. “I’m conscious of two things,” says Bjorn Howard. “On the one hand, I’m conscious of not trying to stop people having second homes. On the other, I’m aware of what a huge resource this is which is not being used. Owners of second homes could derive an income.” This creates another debate for second homeowners: would you rather let your property out for six months over the winter period, or would you rather keep it free, so that you can turn up to your own home whenever you feel like it? It’s a tricky one and may yield a subjective answer, but Bjorn’s point in stating that it’s a huge resource not being used is a very valid one. Take villages and towns like Rock, Port Issac, St Ives and Porthleven where you can visibly see the amount of empty homes, particularly across the winter months. Yet there is hope on the horizon. In Penwith, owners of second homes have all been written to, to see if they wish to rent their properties to the council and Penwith have also raised their Council Tax to 90 per cent. The extra income generated is diverted back to the district councils across Cornwall to invest in new affordable homes. It’s estimated that this generates around £3m a year in Cornwall for new affordable homes, which is £15m over five years, meaning much more affordable housing. There’s also a new Affordable Homes Task Force with a dedicated team of Planning, Housing and Legal Officers to earmark, identify and build affordable homes. Since its introduction, it has increased the amount of affordable homes from 36 in March 2005, to 81 in March 2006, in west Cornwall. There’s even a scheme to encourage downsizing, where grants are given to encourage tenants in large properties to give up their large home and move to a smaller one. Since 2002/03, Penwith District Council have completed 34 of these grants, which have freed up larger homes that might not otherwise have become available. |
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