The charming corner of Norfolk rejecting the second homes tax
Norfolk is known for its quaint villages, beautiful beaches – and for being an epicentre of the backlash against second home owners.
Much of this ire is focused in a quiet corner of North Norfolk, in the village of Burnham Market, in an area widely known as Chelsea-on-Sea. Here, almost 10pc of properties are second homes.
In 2023, villagers voted to stop properties from being turned into holiday homes through the planning system, and then the council hit owners with a 100pc tax surcharge.
Almost all of Norfolk penalises second home owners with higher council tax – except for one area which, by contrast, greets them with open arms.
Welcome to Wymondham, in the heart of South Norfolk. It is far less flashy than its northerly counterparts. Its medieval streets are littered with thatched cottages, timber-framed properties and a historic abbey. The high street is packed with independent shops, and the cobbled market cross hosts a farmer's market every Friday.
There is the annual Wymondham duck race, when hundreds of rubber ducks are launched down the river on May Day. Wymondham in Bloom transforms the high street during the summer months.
It is the kind of place where everyone knows everyone – the locals can point out the Airbnb and second home hotspots. Yet they are welcoming of these visitors, as the high street cries out for more business.
'We need second home owners,' says Nicky O'Grady, a Wymondham local and owner of the Enchanted Willow flower shop.
'We need the footfall, and want the town to become more discovered. Second home owners can often afford to spend money and buy local produce. You can't just rely on locals for business.'
'Taxation for taxation's sake'
While its neighbours have doubled tax on second homes, South Norfolk Council chose not to, deciding that it would have been 'taxation for taxation's sake'.
The 100pc council tax premium on second homes was introduced by 230 councils across the country on April 1. It means a second home owner in Wymondham will pay £2,258 for a Band D property in council tax. Across the border in Great Yarmouth or North Norfolk, the same second home would attract a bill of more than £4,000.
There are 667 second homes in the district, which is dwarfed in comparison to the 5,973 in North Norfolk. Yet local authorities with as few as six second homes – including Sandwell Borough Council in the West Midlands – have introduced the levy.
The town hall resisted this attack on second home owners, saying it didn't believe in 'taxation for taxation's sake'. So the area remains an attractive second home destination, with the Norfolk Broads National Park nearby.
Kyrena O'Brien, of local estate agency, TW Gaze, said the market in Wymondham is 'really active at the moment', with lots of interest from buyers.
'Wymondham is the most sought-after area in South Norfolk, it's getting more and more popular. The town is very welcoming of Airbnbs and short-term lets. It's getting busier, and that's a good thing.'
She adds: 'This is the perfect place if you can't afford to be right on the sea, but you can get there quickly. It's also really easy to get to London via the A11 and has good train lines from Norwich, so it's a good place for a second home.'
It's still an affordable place to buy, with median house prices just above the national average, at £300,000.
'We need the footfall'
As is the case in so many small towns, its high street has struggled. Wymondham residents, Karen and Michael Graham, both 64, have seen an increasing number of businesses shut up shop over the years.
'The high street used to have wonderful butchers and fishmongers, etc,' says Karen. 'Second homes mean tourists are coming in, which helps the economy. We need the footfall.'
Michael says that instead of buying in Chelsea-on-Sea, second home owners should set their sights further south. 'There are lots of places here that are extremely nice.'
Their sentiment is echoed by local businesses. O'Grady, who runs the flower shop, says the town is 'lovely, but undiscovered', and adds that she can't 'just rely on locals for business'.
'We love tourism here. We need the second home owners. We want the town to become more discovered. I worry about the high street,' she added.
Her shop, which is one of its oldest buildings, recently received royal approval when Princess Ann took a bunch of the Enchanted Willow's flowers on a visit to the local hospital.
A change is coming
The South Norfolk council area stretches from Diss in the south to the outskirts of Norwich, and creeps east towards the coast, bordering Great Yarmouth. As local government funding wanes, this second home tax haven may cease to exist next year.
Chancellor Rachel Reeves' Budget hiked employer National Insurance contributions, indirectly costing councils an extra £1.13bn this year. And the spending review fell 'well short of filling the projected £2.2bn funding gap faced by county and unitary councils next year', the County Councils Network said.
South Norfolk District Council has suggested that it may have to bring in the levy because of a lack of government support.
Daniel Elmer, the council leader, said: 'South Norfolk Council took the decision not to increase council tax on second homes this year as we do not believe in taxation simply for taxation's sake.
'Unfortunately, due to the reduced support from central government and the current financial situation, we have had to agree to introduce the increase from next year so that we can use the added revenue to help reduce the overall tax burden for our residents.'
This move may not be wholly supported by Wymondham's locals, however.
Buster Smith, South Norfolk born-and-bred, says: 'There is nothing in Wymondham now. It's just charity shops. We need people here!'
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