Construction has started on the first affordable homes to be funded through a council tax premium on second homes.
We are supporting Broadacres Housing Association to build 26 affordable homes across two sites in Hunmanby and Shipton by Beningbrough, near York.
Funding from the second homes premium has helped unlock the schemes, alongside significant investment from Broadacres and Homes England.
We became one of the first authorities in the UK to introduce the 100 per cent premium on council tax bills for second homes in April 2025 to help address the need for more affordable housing across the county, particularly in coastal and rural areas.
The premium effectively doubled council tax bills for second homeowners in a bid to bring more homes back into use for local families, while generating up to £10 million a year to support affordable housing and other key projects. Work is now underway on the first developments to benefit from almost £900,000 raised through the premium.
A total of 15 affordable homes will be built on land south of Sands Lane in Hunmanby, with one, two and three-bedroom properties to be available for social rent and shared ownership. The homes will be prioritised for people with a local connection to the area.
A further 11 affordable homes have been earmarked for land at Station Lane in Shipton by Beningbrough. The development will provide four three-bedroom, five two-bedroom and two one-bedroom properties, available through social rent or shared ownership for people with a connection to the village and surrounding area.
All the homes are set to be completed by the autumn of 2027 and will include energy-efficient features and low-carbon heating.
Executive member for housing, Cllr Simon Myers, said: “Providing enough affordable housing is one of the biggest challenges facing North Yorkshire.
“When we introduced the second homes premium, we promised that the funding would be reinvested to provide more social and supported housing for local people, with an emphasis on social rent. We are the only council in England to ring-fence this money and reinvest it exclusively in housing-related projects.
“These are the first homes to be funded through the scheme, and without the grants from the second homes premium, they would not have been possible. The developments will help local people and families remain in the communities where they want to live
“We are pleased to be working with Broadacres, Homes England and our partners to bring these developments forward.”
We are contributing £435,000 to the Hunmanby development and £440,000 to the Shipton by Beningbrough scheme.
The Hunmanby development represents a total investment of £4.2 million, including £2.4 million from Broadacres and £1.42 million from Homes England. The Shipton by Beningbrough scheme will see £3.3 million invested, including £1.9 million from Broadacres and £905,000 from Homes England.
The chief executive of Broadacres Housing Association, Claire Townson, said: “These developments will provide much-needed affordable homes in the communities that need them most.
“We know that many rural villages and coastal communities are facing significant challenges when it comes to housing affordability, with local people and families often finding it difficult to secure a home close to their support networks, employment and schools.
“These schemes will help address that need by ensuring homes are prioritised for people with a strong local connection. They also show how funding raised locally can be reinvested to create lasting benefits for future generations across North Yorkshire.”
Money raised through the second homes premium is also supporting a number of other council priorities, including housing schemes and regeneration projects.