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FURNISHED HOLIDAY LET TAX CHANGES WILL HELP NOT HINDER SW COMMUNITIES

Tory planning policies are a potential “NIMBY‘s Charter”, warns King Sturge expert

One of the South West‘s leading property experts has broken ranks with other professionals in the region by backing controversial Government plans to scrap tax help for the owners of furnished holiday lets (FHLs).

Some professional firms are campaigning against the abolition of long-established tax benefits enjoyed by FHL owners, which would affect more than 60,000 properties across the South West.

But Andrew Bullivant, residential partner at King Sturge in Plymouth, believes local people should be given priority in a region which has seen property prices soar in some areas due to an influx of second home owners.

“Across the South West home ownership is a divisive issue but particularly in Devon and Cornwall,” Mr Bullivant told King Sturge‘s annual South West media briefing.

“On one hand, second home ownership acts to keep house prices higher than anywhere outside of London, enables holidaymakers to stay in some delightful properties across the region and makes a significant financial contribution to the wider economy.

“At the same time those high house prices make it extremely difficult for young people to get on the property ladder and render some areas almost uninhabited off season.

“It is therefore vital that the imposition of new rules regarding tax allowances for residential property and in particular second homes, are considered more fully as this region will be affected like no other in the country.

“That said, I see no reason why a second home owner should not be taxed on an income derived from a property that could be used more fully as a main home by a local person.

“Nor do I see any reason why those people owning a property as a second home should have the same degree of consultation as full-time residents when it comes to the consideration of issues which affect their property.

”I hear what people are saying about this measure, but I believe removing these tax advantages is the right thing to do.” 

Mr Bullivant also warned that David Cameron‘s support for “localism” in planning decisions would harm the South West.

“The General Election next year may well result in a new Conservative administration and they have publicly declared that they will abolish Regional Spatial Strategies (RSS), which would have defined the areas of growth and delivery for housing through to 2026.

“Instead, they prefer a policy of localism which would be led by a return to the former County Structure Plan which will see local authorities setting their own housing targets.

“My concern is that this will create huge inconsistencies in the way residential applications are dealt with by local authorities, and do little to help embattled planning officers to fight what are often noisy minorities who do not want development in the towns and villages of Devon and Cornwall.

“We need homes to be built for local people that are affordable and which help sustain our communities. We cannot allow an ill-considered and reactionary approach to be taken in seeking a replacement of RSS to create a ‘NIMBY‘s Charter.‘”

ENDS  2nd December 2009

For further information please contact Neil Fraser, Sturgess Van Damme, on 01275 349011 or email neil@sturgessvandamme.co.uk