NI landlords hail scrapping of holiday homes tax relief as ‘positive step’

Seamus Leheny, chief executive of NIFHA, said: “We have significant housing shortage and there are a number of significant barriers to the development of new homes – in both the social and private sectors.” 

He added: “The increase in buy-to-let holiday homes, which was encouraged by tax incentives, exacerbated this problem, particularly in the north coast area where both affordable private housing and social housing is in shortage for families.” 

Last year, a report by Causeway Coast & Glens Borough Council estimated that up to half of the properties in Portballintrae, a seaside village in County Antrim, are second homes.

The council also estimated that 31% of houses in Cushendun, another coastal village in County Antrim, are holiday lets.

Mr Leheny added: “Tourism is a key economic driver, but we need to ensure we find a fair balance when it comes to year round homes for families, too.”

Under the current tax relief system, properties that are available for holiday letting for at least 210 days a year are eligible. 

The move to scrap the regime by Mr Hunt comes after the government confirmed last month that it was pushing ahead with tighter rules on holiday lets. 

Under the measures, a new mandatory national register for short-term lets will allow councils to track how homes are being used.

A new planning ‘use class’ will also be created for short-term lets not used as a sole or main home, the Department for Levelling Up, Housing and Communities said.