LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW

(Papers relied on to write the report, which do not contain exempt information and which are not published elsewhere)

Contact Officer, telephone number and email:

Matt Stembrowicz, 01263 516047, matthew.stembrowicz@north-norfolk.gov.uk

Nicky Debbage, 01263 516027, nicky.debbage@north-norfolk.gov.uk

Graham Connolly, 01263 516282, Graham.Connolly@north-norfolk.gov.uk

Mark Ashwell, 01263 516325, Mark.Ashwell@north-norfolk.gov.uk

Sean Knight, 01263 516347, Sean.Knight@north-norfolk.gov.uk

Stuart Quick, 01263 516263, Stuart.Quick@north-norfolk.gov.uk

Rob Young, 01263 516162, Robert.Young@north-norfolk.gov.uk

Cllr J Toye introduced the report and thanked officers for their work preparing the report. He added that Members must be careful not to make decisions with unintended consequences, and referred to issues caused by restrictions placed on new homes in St. Ives. It was noted that many concerns around second and holiday homes related to the limited supply of affordable housing available for residents, though data did not appear to fully support this hypothesis. Cllr J Toye stated that in Wells, higher prices paid for homes significantly increased the viability and number of new affordable homes built. He added that recent studies in Wales had shown that restricted occupancy of new build homes attracted more retirees, which placed greater strain on resources and public services. It was stated that no objective evidence was found to suggest that the loss of local services had been caused by second and holiday homes, as this was a national trend. Cllr J Toye stated that meeting the demand for affordable housing across the Country would require significant changes in Government Policy with 2021 data showing 4250 socially rented homes built nationally, against a waiting list of 1.6m. He added that the private rental market was also in decline with a fifty percent reduction in availability and increasing average rents of approximately £1200. It was stated that whilst fixing these problems would require major changes to the housing system, the narrative on second homes and holiday lets needed to change to recognise the benefits they could bring with the right controls. Cllr J Toye noted that the Government were in the process of considering new controls, and these were represented within the recommendations of the report.

Questions and Discussion

       i.          Cllr H Blathwayt asked whether there was any way of recording section 21 notices in the District so that Members could understand how many tenants had been evicted to free up properties for short-term lets. The HSDMND replied that she would seek to provide this information in a written reply, though the Council did hold data on the number of households presenting as homeless as a result of section 21 notices, but it was not known whether this was for short-term letting. She added that evictions could be the result of a number of factors including the state of the housing market, changes to the tax system, or rent arrears built-up throughout the Pandemic, though 2021 Census data would clarify this. Cllr J Toye stated that approximately 80% of privately rented accommodation was being sold, rather than converted to short-term lets.

      ii.          Cllr C Cushing thanked officers for the report and suggested that credit was due to the Government for proposing legislation to help tackle the issue, though he accepted that serious consideration needed to be given to the impact of any Policy changes. He added that it would be helpful to see second and holiday homes split into Council Tax categories. The HSDMND replied that it would be possible to provide this information for second homes, but holiday homes may not be possible.

     iii.          Cllr N Housden stated that in popular coastal areas second and holiday homes did appear to bring tourism and related economic benefits, however inland areas such as West Raynham had seen local services decimated as a result of the loss of communities caused by an influx of second homes. He asked whether there was anything that could be done to further support these isolated residual communities. The Chairman suggested that it was likely that more work was required to understand how these inland communities could be helped, and asked what Councillors hoped to achieve with the CCfA. Cllr J Toye replied that the purpose of the report was to determine the reality of the situation caused by second homes and holiday lets, and stated that evidence had shown that they did not destroy communities and close services, as this happened universally. He added that in some cases they provided economic benefits, and in a controlled way, second homes and holiday lets could provide benefits to communities, and this was why the recommendations had been included for consideration.

    iv.          Cllr W Fredericks referred to the need for affordable housing and stated that the Council would need land and funding to deliver more homes, and stated that this support would need to come from Central Government.

      v.          Cllr N Housden stated that in his personal experience second home owners did not put money back into local communities, and suggested that tackling issues with affordable housing, the private rented sector, second homes and geography, would require focused efforts in specific areas. The Chairman suggested that Town and Parish Councils may be able to offer input, as all areas would be impacted differently. Cllr J Toye replied that Members had been given an opportunity to raise local issues, but many had not chosen to do so. It was noted that Members could approach their Parish and Town Councils for comment.

    vi.          Cllr E Seward stated that whilst second homes were not an issue in North Walsham, it may be helpful for the report to be considered by the Town and Parish Council Forum. He added that he was aware of coastal communities where homes were being bought by retirees, which meant primary schools struggled to maintain minimum student numbers, though second homes and holiday lets did in some cases help to support local businesses such as pubs, restaurants and shops. Cllr E Seward stated that Blakeney had come to mind when reading the report, as he was aware of residents being priced out of the local housing market. He referred to the recommendations and stated that all efforts should be made to ensure that any increase in Council Tax be retained by the District and ringfenced, to be used to buy land for affordable housing. Cllr E Seward referred to the recommendation requiring planning permission for change of use, and stated that whilst he was in favour of registering these properties, he was unsure of its impact. The PPM replied that there were currently no mechanisms in place to control change of use, and suggested that supporting its introduction would enable a mechanism of control that could vary across the District, subject to planning policies set by the Council. He added that at the very least, it would provide an option for the Council.

   vii.          Cllr H Blathwayt stated that he had sought Parish Council input and been provided with anecdotal evidence that did not align with the findings of the report. He added that in Sea Palling, the demographic had purportedly fallen, which was suggested to be the result of increased holiday home ownership. It was noted that in Potter Heigham, there appeared to be many holiday lets used as primary residences, and asked how could this be better policed to ensure that business rates were properly applied.

  viii.          Cllr P Heinrich stated that some issues may require further exploration, such as the impact of an ageing population, the loss of young skilled workers, and finally a greater demand for social care with existing staff shortages.

    ix.          Cllr N Housden suggested that there was a disconnect with Parish Councils, as they felt powerless to act against the impact of second homes and holiday lets. He added that he was also supportive of retaining any increased Council Tax and using planning policies to limit the number of second homes in specific areas.

      x.          Cllr A Brown stated that some issues had not been considered, such as the one million planning permissions granted in the UK that had not been built, some of which could be in North Norfolk and would provide fluidity in the housing market. He added that the proposal to increase Council Tax on second homes and holiday lets would not work without a registration system in place, and whilst he was supportive of greater retention for the District, the increase shouldn’t be limited to doubling the charge. It was suggested that planning controls within the Local Plan would also be helpful for limiting numbers in specific communities.

    xi.          Cllr J Toye stated that restrictions alone would not solve the issues raised in the report, and more affordable homes were needed in the District.

   xii.          The PPM referenced a letter from a second home owner that had been received, and suggested that it was right to acknowledge the message that noted the positive impact of second homes.

  xiii.          The DSGOS noted that a briefing had been offered from a Professor referenced in the report, with Members supportive of the proposal.

 xiv.          It was proposed by Cllr N Housden and seconded by Cllr H Blathwayt that the recommendations be approved, subject to the inclusion of an additional recommendation to consider consultation with Parish and Town Councils.

RESOLVED

1.     It is recommended that Members note the data provided in the report and consider the merit of draft policies relating to Council Tax and Planning restrictions, alongside the resources required to implement such policies.

2.     To recommend to Cabinet that NNDC supports the draft provisions of the Regeneration and Levelling Up Bill which would enable the doubling of Council Tax on second homes, alongside the Council making representations to Government seeking further legislative changes to enable the retention of increased tax revenue collected by 2nd tier authorities (District Councils).

3.     To recommend to Cabinet that NNDC supports the extension of planning controls proposed in the draft provisions of the Regeneration and Levelling Up Bill, alongside the Council making representations to Government seeking further changes to request that all second and holiday homes require planning permission.

4.     To recommend to Cabinet that NNDC responds positively to a call for evidence on the registration of tourist accommodation.

5.     If Cabinet are not satisfied that the data provided in the report provides the necessary information required to support mitigation measures, it is recommended that consideration is given to what further investigation is required, and the resources necessary to undertake such investigations.

6.     To recommend to Cabinet that consideration is given to consulting Parish and Town Councils on the impact of second homes and holiday lets, and take account of any proposed mitigation.

ACTIONS

1.     Housing Strategy & Delivery Manager to provide written reply on the number of tenants evicted to create short-term lets.

2.     Housing Strategy & Delivery Manager to provide data on registered second home Council Tax bands.

3.     Scrutiny Officer to arrange Member Briefing on impact of second homes with Prof. C Hilber