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Britain sets up fund to help areas hit by second-home ownership
December 23, 2016 / 12:05 AM / in a year

Britain sets up fund to help areas hit by second-home ownership

LONDON (Reuters) - Britain set up a new annual 60 million pound fund on Friday to help build more homes in areas hit by high levels of second-home ownership, paid for by a levy introduced in April on the purchase of additional homes.

A rainbow forms as a squall moves past the harbour in St Ives in Cornwall, November 21, 2012. REUTERS/Andrew Winning

Britons buying holiday homes and pushing up house prices in parts of southern England have long angered locals who have seen their children unable to buy in the areas they grew up in.

There have also been more foreign investors over recent years in some regions.

The fund will be financed by an additional 3 percent level of stamp duty introduced in April on those buying a second home or property to be rented out, as part of government efforts to cool the market.

Second-home ownership is at an all-time high according to Britain’s communities ministry, and poses a particular problem to locals in southwest England’s popular tourist areas such as Cornwall, Devon, Somerset and Dorset.

Community Land Trusts, local groups which develop and manage homes and help to make sure they are genuinely affordable, plan to use the money to help deal with the shortage in some parts of the country.

“This fund could triple the 3,000 homes that Community Land Trusts alone already have in the pipeline,” said the Director of the National Community Land Trust Network Catherine Harrington.

Reporting by Costas Pitas; editing by Stephen Addison

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