A woman living on one of the UK’s most popular tourist islands has warned that a new tax on second homes could have a damaging impact on the local economy. She said the changes will force visitors away and take small businesses down with them.
New council tax rules introduced in April allow local authorities in England to charge a 100% premium on second homes. The Isle of Wight Council has opted for the maximum rate, meaning owners of additional properties will now pay between £3,155 and £9,500 a year. Many second home owners are now choosing to sell up, and fewer are coming in to replace them.
Writing in The Telegraph, Isle of Wight resident Imogen Tew said: “There is an underlying trepidation that the way the Isle of Wight ticks along is going to change. That the current balance of tourists and residents, and the money that they spend here, is going to shift.
“That soon, the independent shops, family restaurants and tourist attractions that we love may struggle.”
Ms Tew also spoke to two property owners who say the new charges are pushing them away, even though they’ve spent years supporting the island’s economy.
One of them owns a flat in Ryde, used by family members for holidays since 2017.
Despite its continued use, the property is now up for sale. Another said he spends around one-third of his time on the island, but “easily two thirds” of his money.
He added: “We don’t use the local services, no dentists, no GPs, but we support shops, cafes and hire local tradespeople.”
Local businesses are already worried about the consequences. A gardening company owner said they feared customers would cancel to save money.
Cafes and shops are also concerned about footfall dropping in the shoulder months when regular visitors usually return.
Ms Tew added that the island’s tourism economy has long helped locals, from seasonal jobs as teenagers to cheaper access to parks and attractions in the off-season.
However, she acknowledged the motivation behind the tax. Islanders have long complained about being priced out of the property market, with homes often bought up as holiday getaways.
The council has said the tax is aimed at tackling the housing shortage.
Deputy leader Ian Stephens previously warned that second home ownership was reducing housing options for locals.
Estate agents also claim the changes are already helping, as more homes come onto the market and prices fall.
One example, Ms Tew wrote, is her grandmother, who accepted a lower price for her house but was “thrilled” that it would now go to a full-time island resident.
Still, she warned the situation needs close attention. “Tourists keep our island alive, but locals risk losing the very reasons we want to live here in the first place,” she said.
