The house market in York is ‘a developer’s dream but a local person’s nightmare’ – and the rush to convert homes to holiday lets is making things worse.
Those are the words of York Central MP Rachael Maskell who said the housing market is ‘breaking our city’.
She was speaking in a debate on second homes and holiday lets in Westminster.
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Although the debate was centred on the impact on rural communities, Ms Maskell said it was hitting York residents too.
“York’s pressure-cooker housing market saw an increase of 14% – £36,000 – in the average property price in the year up to August. First-time buyers spend 23% more on housing than they did five years ago,” she said.
“Family homes are being snapped up as holiday lets or second homes, and it is more lucrative to convert student lets to holiday lets, so we now have a problem with student accommodation.”
Developers are building for investors, not for local need, she said.
“They are perfect for short-term breaks but hopeless for local families, even though family homes constitute 80% of those needed.
“That is why the numbers game just does not work and the planning system does not deliver. It is a false economy: housing units are getting ticked off but housing need is not being addressed.
“It is a developer’s dream, as they can name their price, but a local person’s nightmare, as they are pushed away from our city.”
‘Airbnb central’
Ms Maskell said the problem was likely to affect the York Central development behind the station, where 2,500 homes are set to be built.
“Even Homes England recognises it could be dominated by second homes and holiday lets – it is now being dubbed ‘Airbnb central'”, the Labour MP said.
Unaffordable house prices and rents mean “local families are now being driven away by the net loss of council housing and a housing waiting list that has tripled in my short time in Parliament”.
Ms Maskell made five suggestions:
- a register of housing lets and a register of second homes
- a council tax levy paid by people who own a second property for holiday lets
- a reformed planning system to build local homes for local people
- scrapping the mortgage tax relief on holiday lets
- a limit on the time for which holiday homes can be let.
‘Broken market’ hits Ryedale
Kevin Hollinrake, who founded Hunters estate agency in York before being elected as MP for Thirsk and Malton, agreed during the debate that “that we are in a broken market”.
He said in Ryedale, “the average house price is around £300,000, with an average earnings to house price ratio of about 8.7. In Hambleton, the ratio is 7.2, and in other places, such as Filey—attractive coastal resorts—prices are going up”.
The Conservative MP said: “I would recommend that we put that £4 billion or £5 billion a year into the first homes programme, increasing the number of properties available to local, first-time buyers who are keen to get into the housing market.
“That would ensure that those local people have a stake in our communities and are available for employers to do the very important work of making our communities sustainable.”