Yorkshire's true holiday home industry 'in dire need of support'

Martin Sach, the Holiday Home Association’s chief executive, made the comments following growing concerns about second home owners masquerading as holiday businesses being able to claim £10,000 each in taxpayer money.

“The first thing I would say is that we would offer no support whatsoever to anyone who told lies about the true use of the property. It is very straightforward indeed,” he said.

“We do not support or represent people who have second homes that are primarily for their own use. If someone has a flat in Mayfair and a bolthole in the Yorkshire Dales, we are not representing those people.

“Those are second homes – we represent commercial businesses that let holiday homes as their primary business.

“These are small businesses that in most cases are owned by individuals who depend on them for their livelihoods. They are small businesses whose business has disappeared overnight. They have lost a vast amount.

“The industry is in dire trouble and they will need every bit of support on offer. Nobody knows when this is going to end.”

Mr Sach, whose association represents around 10,000 businesses in England, said he did not think “it is that common” for second homes to pretend to be running holiday lets in order to avoid council tax.

He said special tax rules around what officially qualifies as a Furnished Holiday Letting, including a requirement for the property to be let to the public for at least 105 days per year, provide a clear indication of what is a legitimate business. However, that is not the criteria being used to assess eligibility for the Government’s coronavirus grant fund for small businesses, under which homes registered as self-catering accommodation can qualify with no requirement for any letting of the property to have taken place.

Mr Sach added: “Tourism is a vital industry in many rural areas of England and the Yorkshire Dales and the Yorkshire coast is no exception.

“Tourism can’t take place without accommodation and holiday cottages are one of the most popular ways of people enjoying the English countryside and the Yorkshire coast as well.

“Without that accommodation there would be no tourism industry and a lot of people’s livelihoods would be lost.”

Melanie Carroll owns seven holiday properties in the Filey and Thirsk areas.

She said while the Government’s £10,000 grants were desperately needed and “very welcome” after the buildings had to closed overnight to visitors, they do not ensure the survival of her business alone.

“The property that is most profoundly affected is an eight-bedroom property that sleeps 14 in Filey. It rents out at £2,000 a week during peak season and it earns its main money from Easter to the end of the summer holidays,” she said. “The Government help of £10,000 represents five holidays - it goes nowhere near what we are likely to lose over many months of holidays.

“I’m hoping that people’s families will be able to go away together as a single family unit but if you have anything that sleeps six people or more, you will be hit really hard.

“I completely understand the Government had to apply a blunt instrument with these grants.

“If the very worst happened for me, the properties could be sold and the equity in my business would be sufficient to pay back any loans. But there would obviously be less places for people to go on holiday.”

She said as well as helping to provide employment for a team of cleaners and a property manager, her businesses also support the local economy by bringing tourists in who then spend in local shops.

She added that while times are very tough at the moment, the public could have a vital role in securing the long-term future of Yorkshire’s seaside towns and tourism hotspots by booking ahead for 2021.

“I’m very much hoping the public will go to book sooner rather than later for next year so we can have that security of future income. I would suggest people look at the cancellations policy before they book so they have security themselves.

“It could be a really good year next year - if somebody goes and has an English holiday and starts making it a habit with regular weekend breaks, it could make such a difference.”

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