North Yorkshire County Council could introduce a 100% premium on council tax bills on second homes within the next two years.
The local authority estimates the charge could generate £1.5m a year in extra council tax payments in the Harrogate district and £14m a year in North Yorkshire overall.
The issue of second homes in the county has risen up the political agenda in recent years, with concerns that they are pricing local people out of buying homes in the places they were brought up.
House prices in the Yorkshire Dales, for instance, are about a third higher than the county average. The average cost of a property in the Dales is nearly £400,000, while the average weekly wage in North Yorkshire is just over £530.
Councillor Carl Les, the Conservative leader of North Yorkshire County Council, said the move depended on new legislation being introduced by the national government and the approval of the local authority.
He said any money raised through the premium would be used to fund council services, including council tax reduction schemes and affordable housing projects.
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The council’s executive will meet on Tuesday to debate the new council tax policy.
Council leader Carl Les
Cllr Les said:
“The issue of second home ownership has emerged as a major issue for many areas of the country, and it is one that we are acutely aware of in North Yorkshire.
“The county is a wonderful place to live and visit, and that has seen the trend towards people wanting to purchase a property either as a second home or a holiday let.
“Any proposed premium on second home owners will be carefully considered and debated by the council before the new legislation is introduced.
“But the revenue generated would prove to be a key source of funding to help to bridge the new council’s budgets and finance vital areas such as homelessness costs and also providing more affordable housing.”
Both the county council and Harrogate Borough Council will be abolished on April 1 next year and be replaced by a new authority called North Yorkshire Council.
