Council Faces £100,000 Tax Bill After Ban on Second Homes Leaves Luxury Flats Unsold
Council Faces £100,000 Tax Bill After Ban on Second Homes Leaves Luxury Flats Unsold

West Norfolk Council is facing a £100,000 tax bill after failing to sell a single one of 32 luxury flats in a seafront development in Hunstanton. The apartments, built as part of the Styleman Court project, were initially restricted to local buyers only, but the policy has backfired spectacularly.

The council, which built the flats with part-funding from Homes England, has been forced to lift the restriction on second home owners after 19 months without a buyer. The empty homes premium, which doubles council tax on vacant properties, could cost the authority nearly £100,000 if the flats remain unsold by February 2026.

Deputy council leader Simon Ring admitted the situation was embarrassing, saying: 'If the properties are still empty in a year's time, we will suffer the empty homes tax, which will be like being hoisted by our own petard.' Confidential papers revealed that removing the restriction could increase the value of each flat by an average of £39,500.

Independent councillor Paul Beal defended the decision, noting that Hunstanton is a tourist town and the flats are ideally located for holiday homes. 'No one wants to live there full time,' he said. 'But as a holiday home destination, I think it would be fantastic.'

The project has also gone nearly £2 million over budget due to delays and rising material costs. Six of the apartments will be retained as social housing, while the remaining 26 will be sold without the second home ban. Council officials hope the change will also make mortgages more accessible for local buyers.