To receive and consider the recommendations of the Cabinet (Minute 73(a)) as an amendment to the following Notice of Motion submitted previously to the Council by Councillor Connett and referred thereto in accordance with Standing Order 8(2), namely:
Devon County Council calls on the Government to:
1. End the tax dodge loop-hole of second home owners switching from Council Tax to Business Rates and then claiming ‘small business’ exemption, so they pay nothing at all.
2. To re-extend the notice period given to tenants to 6 months
3. Maintain the Local Housing Allowances at Covid-levels (plus cost-of-living increases) to support families into homes
and that the County Council will:
1. Work with Devon's District, City and Borough councils to establish a 'housing taskforce' working across the county to tackle the flight to Air BnB and holiday rentals
2. Support the provision of urgently needed rented housing on County owned land
Council welcomes the research undertaken by property agents Colliers and published in August 2021, which confirms:
Local authorities are losing out on millions of pounds of council tax income because the Government’s business rates system is still giving many holiday home and second home owners the opportunity to avoid paying the tax, provided they make their properties available to rent. This situation has been made even worse by the pandemic.
Colliers estimates the total loss to local authorities from business rates relief for holiday lets in England and Wales alone is currently around £110 million a year - a significant sum that could certainly help bridge the gap in local authority finances, now suffering because of the pandemic.
Property owners who make their properties available to rent as holiday lets for 140 days of the year can claim they are a small business and as such can elect to pay business rates instead of council tax.
However, as small businesses they can claim for relief on 100% of the business rates payable if their properties have a rateable value of less than £12,000. Those properties with a rateable value between £12,000 and £15,000 are also entitled to a relief on a sliding scale in line with the Government’s business rates relief policy.
Colliers has analysed the rating lists for the South West of England (Cornwall, Devon, Somerset and Dorset) where 9,600 new properties, claiming 100% business rates relief have entered the list in the last four years- an 82 % increase since the start of the 2017 Ratings List.
According to Colliers’ estimates this flip from the council tax to the business rates list is costing the local councils an extra £16 million a year in council tax income. The South West now has 21,312 properties in the rating list that are eligible for 100% business rates relief and Colliers has estimated that if these properties at least paid council tax the local councils would benefit by £35.5 million a year!
Council also notes that the Office for National Statistics has reported:
The number of households living in the private rented sector in the UK increased from 2.8 million in 2007 to 4.5 million in 2017, an increase of 1.7 million (63%).
Over this period, the number of owner occupier households remained broadly consistent at 17.7 million households.
However, households owned outright increased from 7.9 million to 9.4 million while households buying with a mortgage fell from 9.8 million to 8.3 million.
The number of social rented households decreased by 200,000 households to 4.5 million.
Younger households are more likely to rent privately, with those in the 25 to 34 years age group representing the largest group.
Households in the 45 to 54 years age group saw the biggest percentage increase from 11% in 2007 to 16% in 2017, an estimated increase of 384,000 households.
Council welcomed the protection for tenants but is concerned about a rise in evictions
Due to Government action during the Covid pandemic, thousands of private sector tenants were protected from homelessness by the national ban on evictions.
However, that protective shield was removed on 31 May this year and, in addition, the notice period that a landlord must give a tenant was cut from six to four months
Citizens Advice said there’s been a 17 per cent increase in people with issues about being evicted from their private rented accommodation, comparing the first four months of this year with the same period a year ago.
It said there’s also been a 36 per cent increase in the number of people seeking help with all types of problems in the rental sector.
Private rented homes are like Hens teeth...
In Devon, we are seeing a dramatic shift in the availability of private rented homes.
In North Devon, the Reach Plc news organisation, reported on 8 August that there are 2000 residents looking for social housing on Devon HomeChoice but only 20 residential properties available for rent via Rightmove. In Teignbridge, there are 1000 applicants on the Devon HomeChoice register, a search of Rightmove on 9 August showed 5 rental properties available in Newton Abbot, 7 in Dawlish, 1 in Teignmouth, 1 in Ide, 1 in Bovey Tracey, 2 in Chudleigh and 1 each in Ashburton and Buckfastleigh with none in Exminster. In East Devon, there were 22 rental properties displayed on Righmove. Anecdotal evidence from other districts suggests this pattern of high demand and very low supply is repeated across Devon.
And this is an extract from an online search on 09 August 2021 for Air BnB properties for let in Devon
500+ Devon Holiday Cottages | House and Apartment ... - Airbnb
https://www.airbnb.co.uk › United Kingdom › England
Find the perfect self-catered holiday cottage for your trip to Devon. Houses with a kitchen and apartments with free parking await you on Airbnb.
The Guardian of February 2020 reported....
Out-of-control’ dominance of rentals in some communities depriving locals of homes, critics say
· The Devon village changed by Airbnb
In England, the area with the highest rate of Airbnb lets was Woolacombe, Georgeham and Croyde, in Devon, with 23 listings for every 100 properties.
Having had regard to the aforementioned, any factual briefing/position statement on the matter set out in Report (CSO/21/15) and other suggestions or alternatives considered at that meeting the Cabinet subsequently resolved:
(a) that the County Council assess the potential for it to offer accommodation to new social and key workers to attract them to work for Devon County Council;
(b) that the County Council, as a member of Team Devon (Leaders and Chief Executives), propose to Team Devon that a Devon strategic housing taskforce be established to help draw together the work of existing pan-Devon housing partnerships and focus on tackling homelessness and improving the availability of affordable housing in Devon; and
(c) that the County Council, as a member of Team Devon (Leaders and Chief Executives), proposes to Team Devon that it write to Devon Members of Parliament asking them to support changes to legislation and policy to address the housing problems in Devon described in the Notices of Motion. Team Devon’s letter to MPs should propose strengthening the criteria on how a property becomes liable for Business Rates instead of Council Tax. Owners of these properties should have to show that they are commercially letting the property and not just declaring them available for rent.
Decision:
Councillor Hart MOVED and Councillor McInnes SECONDED that the Cabinet’s advice be accepted and that the Notices of Motion be supported and;
a) that the County Council assess the potential for it to offer accommodation to new social and key workers to attract them to work for Devon County Council;
(b) that the County Council, as a member of Team Devon (Leaders and Chief Executives), propose to Team Devon that a Devon strategic housing taskforce be established to help draw together the work of existing pan-Devon housing partnerships and focus on tackling homelessness and improving the availability of affordable housing in Devon; and
(c) that the County Council, as a member of Team Devon (Leaders and Chief Executives), proposes to Team Devon that it write to Devon Members of Parliament asking them to support changes to legislation and policy to address the housing problems in Devon described in the Notices of Motion. Team Devon’s letter to MPs should propose strengthening the criteria on how a property becomes liable for Business Rates instead of Council Tax. Owners of these properties should have to show that they are commercially letting the property and not just declaring them available for rent.
The amendment in the name of Councillor Hart was then put to the vote and declared CARRIED and subsequently thereafter also CARRIED as the substantive motion, nem. con.
Minutes:
(All Members of the Council had been granted a dispensation to allow them to speak and vote in any debate on housing where they owned / leased land, business, property in the administrative County of Devon, unless the matter
relates directly to that land, business or property)
The Chair MOVED and it was duly SECONDED that in accordance with Standing Order 30, Standing Order 5 be suspended to permit the re-ordering of agenda items and for the Council to take agenda items 11 and 12 together with the consent of Councillor’s Connett and Hannaford.
The MOTION was put to the vote and declared CARRIED.
Pursuant to County Council Minutes 53 and 54 of 7 October 2021 relating to the Notice of Motions set out below as submitted and formally moved and seconded by Councillors Connett and Hannaford as below:
Supporting Devon Residents into Homes of their Own (Councillor Connett)
Devon County Council calls on the Government to:
1. End the tax dodge loop-hole of second home owners switching from Council Tax to Business Rates and then claiming ‘small business’ exemption, so they pay nothing at all.
2. To re-extend the notice period given to tenants to 6 months
3. Maintain the Local Housing Allowances at Covid-levels (plus cost-of-living increases) to support families into homes
and that the County Council will:
1. Work with Devon's District, City and Borough councils to establish a 'housing taskforce' working across the county to tackle the flight to Air BnB and holiday rentals
2. Support the provision of urgently needed rented housing on County owned land
Council welcomes the research undertaken by property agents Colliers and published in August 2021, which confirms:
Local authorities are losing out on millions of pounds of council tax income because the Government’s business rates system is still giving many holiday home and second home owners the opportunity to avoid paying the tax, provided they make their properties available to rent. This situation has been made even worse by the pandemic.
Colliers estimates the total loss to local authorities from business rates relief for holiday lets in England and Wales alone is currently around £110 million a year - a significant sum that could certainly help bridge the gap in local authority finances, now suffering because of the pandemic.
Property owners who make their properties available to rent as holiday lets for 140 days of the year can claim they are a small business and as such can elect to pay business rates instead of council tax.
However, as small businesses they can claim for relief on 100% of the business rates payable if their properties have a rateable value of less than £12,000. Those properties with a rateable value between £12,000 and £15,000 are also entitled to a relief on a sliding scale in line with the Government’s business rates relief policy.
Colliers has analysed the rating lists for the South West of England (Cornwall, Devon, Somerset and Dorset) where 9,600 new properties, claiming 100% business rates relief have entered the list in the last four years- an 82 % increase since the start of the 2017 Ratings List.
According to Colliers’ estimates this flip from the council tax to the business rates list is costing the local councils an extra £16 million a year in council tax income. The South West now has 21,312 properties in the rating list that are eligible for 100% business rates relief and Colliers has estimated that if these properties at least paid council tax the local councils would benefit by £35.5 million a year!
Council also notes that the Office for National Statistics has reported:
The number of households living in the private rented sector in the UK increased from 2.8 million in 2007 to 4.5 million in 2017, an increase of 1.7 million (63%).
Over this period, the number of owner occupier households remained broadly consistent at 17.7 million households.
However, households owned outright increased from 7.9 million to 9.4 million while households buying with a mortgage fell from 9.8 million to 8.3 million.
The number of social rented households decreased by 200,000 households to 4.5 million.
Younger households are more likely to rent privately, with those in the 25 to 34 years age group representing the largest group.
Households in the 45 to 54 years age group saw the biggest percentage increase from 11% in 2007 to 16% in 2017, an estimated increase of 384,000 households.
Council welcomed the protection for tenants but is concerned about a rise in evictions
Due to Government action during the Covid pandemic, thousands of private sector tenants were protected from homelessness by the national ban on evictions.
However, that protective shield was removed on 31 May this year and, in addition, the notice period that a landlord must give a tenant was cut from six to four months
Citizens Advice said there’s been a 17 per cent increase in people with issues about being evicted from their private rented accommodation, comparing the first four months of this year with the same period a year ago.
It said there’s also been a 36 per cent increase in the number of people seeking help with all types of problems in the rental sector.
Private rented homes are like Hens teeth...
In Devon, we are seeing a dramatic shift in the availability of private rented homes.
In North Devon, the Reach Plc news organisation, reported on 8 August that there are 2000 residents looking for social housing on Devon HomeChoice but only 20 residential properties available for rent via Rightmove. In Teignbridge, there are 1000 applicants on the Devon HomeChoice register, a search of Rightmove on 9 August showed 5 rental properties available in Newton Abbot, 7 in Dawlish, 1 in Teignmouth, 1 in Ide, 1 in Bovey Tracey, 2 in Chudleigh and 1 each in Ashburton and Buckfastleigh with none in Exminster. In East Devon, there were 22 rental properties displayed on Righmove. Anecdotal evidence from other districts suggests this pattern of high demand and very low supply is repeated across Devon.
And this is an extract from an online search on 09 August 2021 for Air BnB properties for let in Devon
500+ Devon Holiday Cottages | House and Apartment ... - Airbnb
https://www.airbnb.co.uk › United Kingdom › England
Find the perfect self-catered holiday cottage for your trip to Devon. Houses with a kitchen and apartments with free parking await you on Airbnb.
The Guardian of February 2020 reported....
Out-of-control’ dominance of rentals in some communities depriving locals of homes, critics say
· The Devon village changed by Airbnb
In England, the area with the highest rate of Airbnb lets was Woolacombe, Georgeham and Croyde, in Devon, with 23 listings for every 100 properties.
Devon’s Housing Crisis (Councillor Hannaford)
Council notes with concern that Devon is in the grips of a serious housing crisis. Second home sales are soaring, private landlords are switching to holiday letting in huge numbers, significantly fewer homes are available to buy or rent, and both renters and buyers are being priced out of the county in an unprecedented way.
The post pandemic far South West property boom has especially compounded decades of systemic under investment in social and affordable housing, that has prevented local councils, housing associations, alms houses and charities from investing in more much needed homes for local people and families.
We know that across Devon we have thousands on the Devon Home Choice waiting lists, with thousands more not eligible to apply, and thousands more in often poor quality private rental stock. Home ownership is now only a distant dream for so many.
People who’ve lived here for generations are being pushed further away by property prices that they simply cannot afford.
Furthermore, we also risk our communities becoming unsustainable, we have a county wide recruitment and retention problem across all sectors, including at Devon County Council.
Council therefore resolves to;
· Set up a high level action group to look at using Devon County Council resources to provide some key worker accommodation for our own staff such as adult and children’s social workers.
· That Devon County Council use its convening powers to host and coordinate a county wide Devon Housing Forum with all key partners to develop a range of effective local and grassroots solutions to help solve Devon’s housing crisis, including key workers such as nurses, care workers, teachers, hospitality and retail sector and those serving in the blue light services.
· Work with all our local Members of Parliament to ensure that new Secretary of State for Housing and Local Government fully understands the collective housing challenges that we urgently face in Devon, and to secure the necessary powers and resources through the Devon Devolution Deal to make significant and lasting progress to provide people in Devon with somewhere affordable, safe and secure to call home.
and having had regard to the advice of the Cabinet set out in Minute 73(a) and 73(b) of 10th November 2021:
Councillor Hart MOVED and Councillor McInnes SECONDED that the Cabinet’s advice be accepted and that the Notices of Motion be supported and;
a) that the County Council assess the potential for it to offer accommodation to new social and key workers to attract them to work for Devon County Council;
(b) that the County Council, as a member of Team Devon (Leaders and Chief Executives), propose to Team Devon that a Devon strategic housing taskforce be established to help draw together the work of existing pan-Devon housing partnerships and focus on tackling homelessness and improving the availability of affordable housing in Devon; and
(c) that the County Council, as a member of Team Devon (Leaders and Chief Executives), proposes to Team Devon that it write to Devon Members of Parliament asking them to support changes to legislation and policy to address the housing problems in Devon described in the Notices of Motion. Team Devon’s letter to MPs should propose strengthening the criteria on how a property becomes liable for Business Rates instead of Council Tax. Owners of these properties should have to show that they are commercially letting the property and not just declaring them available for rent.
The amendment in the name of Councillor Hart was then put to the vote and declared CARRIED and subsequently thereafter also CARRIED as the substantive motion, nem. con.