The deputy leader of North Yorkshire Council says “aspersions cast on his integrity” over the introduction of second homes premium tax “really hurt”.

CounGareth Dadd, who recently announced he is stepping down next year, has been accused by second home owners of "scuttling away with unanswered questions" about the controversial policy. Last April the council was one of the first to implement a 100% council tax premium on second homes.

The policy aims to tackle the high number of holiday homes in coastal and rural areas, with the revenue ring-fenced for affordable housing projects.

Filey-based SHOUT (Second Homeowners Opposed to Unfair Taxation) say some owners who’ve tried to sell have been unable to and the policy has resulted in a glut of one and two-bedded flats for sale, which young families do not want.

Filey, East Yorkshire, where a group of second homeowners have been campaigning against the doubling of council tax on second homes

placeholder image — Filey, East Yorkshire, where a group of second homeowners have been campaigning against the doubling of council tax on second homes

Restrictive covenants mean many of the properties can’t be rented out.

They claim councillor Dadd had a vested interest as the owner of two holiday lets in Staithes and shouldn't have had any involvement in the policy.

Coun Dadd said he'd declared his interest in the holiday lets, which he bought a decade ago, as soon as the policy emerged in 2022. His directorships of Wedgewood Alexander Properties Ltd and Bradley Bell (Staithes) Ltd are listed on the council's website.

Holiday lets run as businesses in England do not pay council tax if they meet certain criteria; instead, they pay business rates, which may qualify for small business relief.

Coun Dadd told The Yorkshire Post he'd been more open than he needed to be “and all I've ended up with is abuse”. He said: "I am very angry indeed, because people can attack me over the policy. They have a different view. They are having to pay double. But to cast aspersions on my integrity really does hurt."

Councillor Dadd pointed out that the policy had cross party support and was nearly unanimous and insisted it was fair "because they (second homeowners) unintentionally are causing a problem within the local housing market and we have to encourage the housing market to be rebalanced”.

SHOUT member Susan Pape said she’d recently sold her holiday flat in Filey which she bought with her husband 17 years ago – but had to drop the price by £50,000. “We kept reducing the price – we were quite desperate to sell.

"There’s people who have inherited parents and grandparents (holiday homes) and can’t get rid, and it’s a real financial burden.

"My anger is that there is a large number of Airbnbs and holiday lets in Filey that don’t pay anything.

"We probably used our holiday flat as much as Gareth Dadd’s second homes are rented out – that’s what really irks me.”