Second home tax funds Broadacres projects
Ringfenced cash from the 100% premium on council tax in North Yorkshire has been used to partly finance 26 affordable homes across two sites near York.
Broadacres Housing Association has started on site at Hunmanby and Shipton by Beningbrough, where North Yorkshire Council is spending more than £800,000 of the additional council tax revenue. The council said the measure could generate as much as £10m a year of revenue. Broadacres itself and Homes England are financing the bulk of the development cost.
North Yorkshire became one of the first authorities in the UK to introduce the 100% premium on council tax bills for second homes in April 2025, aimed at addressing the need for affordable housing across the county, particularly in coastal and rural areas.
A total of 15 affordable homes will be built on land south of Sands Lane in Hunmanby, with one, two and three-bedroom properties to be available for social rent and shared ownership. The homes will be prioritised for people with a local connection to the area.
A further 11 affordable homes have been earmarked for land at Station Lane in Shipton by Beningbrough. The development will provide four three-bedroom, five two-bedroom and two one-bedroom properties, available through social rent or shared ownership for people with a connection to the village and surrounding area.
All the homes are set to be completed by the autumn of 2027.
Cllr Simon Myers, executive member for housing, said: “Providing enough affordable housing is one of the biggest challenges facing North Yorkshire.
“When we introduced the second homes premium, we promised that the funding would be reinvested to provide more social and supported housing for local people, with an emphasis on social rent. We are the only council in England to ring-fence this money and reinvest it exclusively in housing-related projects.
“These are the first homes to be funded through the scheme, and without the grants from the second homes premium, they would not have been possible. The developments will help local people and families remain in the communities where they want to live.
“We are pleased to be working with Broadacres, Homes England and our partners to bring these developments forward.”
The council is contributing £435,000 to the Hunmanby development and £440,000 to the Shipton by Beningbrough scheme.
The Hunmanby development is costing £4.2m, funded by £2.4m from Broadacres and £1.42m from Homes England. The Shipton by Beningbrough scheme will see £3.3m spent, including £1.9m from Broadacres and £905,000 from Homes England.
Claire Townson, chief executive of Broadacres Housing Association, said: “These developments will provide much-needed affordable homes in the communities that need them most.
“We know that many rural villages and coastal communities are facing significant challenges when it comes to housing affordability, with local people and families often finding it difficult to secure a home close to their support networks, employment and schools.”
