Corbyn says he would impose a levy on second homes

Mr Corbyn endorsed the policy in his closing speech at the Labour Party conference in Liverpool this afternoon.

The idea of a levy on second homes had been tabled and discussed earlier this week but now it has been endorsed by the Labour leader.

The move will be particularly popular in Cornwall, where there is widespread concern about the number of second homes in the county.

Making the announcement, Mr Corbyn highlighted that “one in five homes in England are now unfit for human habitation and 120,000 children are living in temporary accommodation”.

He added: “So, as John Healey (shadow housing secretary) has pledged, we will put a levy on those with second homes. Think of it as a solidarity fund for those with two homes to help those without any home at all.”

The party has said the levy could raise as much as £560million and has said this would be used to help reduce homelessness, particularly among children.

Under the plans second properties used as holiday homes would be subject to a new tax which would be about £3,000 a year. It is believed it could affect up to 174,000 properties across the country.

The new levy would be based on the property’s council tax band and would represent the doubling of council tax. However Labour has said the additional money would not go to local councils but directly to the Treasury.

Mr Healey, who put forward the policy, said: “Over the last eight years, the Government has turned its back on the scandal of poor housing and homelessness.

“A housing market that works for the many, needs government action to ensure everyone has a place to call home.

“As part of the next Labour government’s plan to rebuild Britain, we will introduce a levy on second homes used as holiday homes, to help homeless families. Labour will act to put a brake on the growing gap between Britain’s housing ‘haves’ and ‘have-nots’.”

Exeter Labour MP Ben Bradshaw said: “I warmly welcome this policy, which will help tackle the scandal of rising homelessness under the Conservatives.

“There has been a 30% increase in the number of people owning more than one home in the past ten years, while many of our young people in the Westcountry face the prospect of never being able to afford a home of their own.”

Cornwall’s Conservative MPs have also been raising concerns about second homes and have been calling for a loophole to be closed which means that some holiday home owners avoid paying council tax or business rates.

There have also been moves to prevent new homes being built as second homes with St Ives and Mevagissey among those areas which have introduced policies to block new second homes in their neighbourhood development plans.