CPRE warns of holiday homes threat facing tourism hotspots in Northumberland

The Council for Protection of Rural England (CPRE) has warned that popular coastal communities are facing ‘an unprecedented threat’ due to the proliferation of holiday homes.

The countryside charity says the harmonious balance between permanent residents and non-resident homeowners has been disrupted by policy changes that incentivised investors to convert second homes into business entities, leading to a reduction in council tax contributions.

The CPRE says the stark reality of this shift is evident in villages like Beadnell, where out of 662 dwellings, only 162 (24%) are occupied by permanent residents. The remaining 500 comprise second homes and holiday lets.

The charity points out that this imbalance poses a risk to the sustainability of local volunteer teams such as the RNLI and fire service and the staffing of the leisure industry.

While upcoming regulations for holiday lets in England, including a mandatory registration and occupancy requirement, aim to address some concerns, the CPRE argues these measures fall short of mitigating the full impact of the surge in second homes and holiday lets.

It is calling for stronger government action to strengthen the holiday let registration scheme to ensure accountability and to guide local authorities to allocate increased council tax premiums from second homeowners towards local community development and affordable housing, in consultation with the residents.

“The CPRE urges the government to consider the future of our coastal communities and the essential services they provide,” said a spokesperson. “It is imperative that the additional revenue generated from second homeowners is invested back into the communities that are the lifeblood of our cherished coastal regions.”

The call is supported by Beadnell resident Jen Hall who last week presented a 460-signature petition to Northumberland County Council calling for additional council tax from second homes to be ring-fenced for coastal communities.

The council has previously agreed to implement a 100% premium for second homes to increase the council tax charge to 200% from April 1, 2025.

Mrs Hall, in a presentation to the petitions committee, painted a picture of an ageing community where properties are usually snapped up as investments; of families being evicted from rented accommodation to make way for tourists; and businesses being hindered by a desperate shortage of staff.

She said: “Just like in Devon or Cornwall, Spain or Venice we are now over-reliant on a seasonal and part time, low paid economy which is hollowing out our communities and is now even threatening the tourist trade.

“The owners of the letting properties benefit financially but may live in other parts of the country. This income therefore doesn’t benefit Northumberland’s local economy.

“You have a unique opportunity to use the additional second home council tax income, which was permitted under the Levelling Up legislation, to set an example to the rest of the country. To make a real difference for residents and businesses by providing affordable housing, enabling or building work units and by supporting our communities.”

In response, officers explained that council tax income cannot be utilised to subsidise affordable housing but the authority is developing a programme of affordable housing and is piloting an initiative to support community-led housing schemes in rural and coastal communities.