Thursday, 15 August 2013

Holiday Cottages in the UK

For many years now, I have avoided renting a holiday cottage for our UK-based holidays, because  I realise that the purchase of second homes in cute country villages and towns, or letting them as holiday homes, robs the local economy. This year, I relented and hired a farm cottage, miles from anyone apart from the farmer who let it.  But why have I avoided something so apparently innocuous for so long? And why was this cottage OK?

When wealthy off-comers buy holiday homes, it drives up house prices so that they are beyond the means of locals who, in rural jobs and lacking major local employers, are often on low wages. It also deprives local businesses of income.  The people who are, at any given time, resident in these homes will not be using the local hardware shop, car servicing, furniture and hard goods businesses. Indeed, there may be so little local trade for such businesses that they don't exist, and locals have to travel tens of miles to buy household essentials, visit a vet, or get the car MOT'd.  Tourist-based businesses might do a little better; but if self-catering cottages weren't available, maybe restaurants, B&Bs and hotels would get more trade.

When many homes are empty or let to tourists, the area will have fewer doctors, schools and other public services (eg: buses) in relation to the number of homes.  The local council will receive less council tax per property, as homes that are not the main residence attract a lower rate. This means that the council will have to charge more tax overall, in order to cover the services (the temporary residents will still want the street lights and the bins emptying).

Is there any self-catering property that I consider to be OK?  Well, yes.  Those properties that have been purposely built to cater for tourists, especially in larger resorts; and chalet/trailer homes, which are on one single estate where the owner is responsible for all amenities make ideal self-catering accommodation. Holiday accommodation is a good use of the lonely cottage, which may have been built as a tied home for a farm labourer and no longer needed (like the one I rented this summer), or a large house converted into flatlets which do not have the individual security to be separate permanent homes, or where the owner is still in residence.  Narrowboats are another option, with the advantage of a daily change of scenery, should you wish it.


Entire houses, however, left unoccupied in low season or inhabited by people who base their economic life elsewhere, should be discouraged, not encouraged with Council Tax discounts. Rather, they should be paying twice the amount, to compensate for their negative effect on the economy.  It would help the Councils pay for the homeless families they have to place in B&B because there aren't any properties available.

Holidaying in the UK should be encouraged, both for British citizens and those coming from overseas; but tourism should benefit all the economy.  It should mean more jobs for locals, both in hospitality and retail.  Where off-comers insist on buying up small homes for their weekends away, they should be paying the economic price of that home to the local council, to cover both their own use and the negative effect of their lack of engagement with the local economy, i.e. double Council Tax. They can always add it to the property rent if it's a buy to let; the person renting is already paying several hundred pounds in high season for a week, so a few extra quid will hardly be noticed.

LINK: Devon and Cornwall communities left empty by scourge of second homes.


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