Owners of Britain’s most exclusive beach huts will have to pay full council tax after penny-pinching officials decided they count as ‘second homes’.
The beachside cabins, worth around half a million pounds each, along Mudeford Spit and Hengistbury Head have fallen into the sights of the local council as it scrambles to fund local services.
Historically, Bournemouth, Christchurch and Poole (BCP) Council has not categorised the huts as second homes, which has entitled them to a 50 percent council tax discount.
But from April, 344 beach huts on the idyllic stretch of Dorset coastline will be classified as second homes and no longer be eligible for the reduction.
231 of these are owned by people living outside of the local authority area.
Bills will leap up to £1,503 per year – an increase of £60 per month – as the council tries to raise an additional £211,000 for under-pressure local services.
The beach huts, that can be stayed in overnight for part of the year, measure just 13ft by 16t but can fetch more than a four-bedroom home in some parts of the country.
With price tags up to £575,000, the value of these huts also eclipses the area’s average house value of £313,000.
The council’s decision tears up the arrangement it inherited from past Bournemouth and Christchurch councils.
BCP, like many councils, is struggling to make ends meet and must search for new sources of income to keep services afloat.
One of the huts in question hit the market earlier this year for a staggering £430,000 after the owners bought it for £60,000 in 1997.
The hut does not even face the sea and, like the rest, does not have running water or mains electricity.
It is serviced by an oven, hob and fridge powered by a Calor gas bottle, and limited electricity supplied by solar panels on the roof.
It can sleep five to six people, with the lounge area doubling as a bedroom and two beds in the mezzanine floor area above.
Cllr Mike Cox, Cabinet Member for Finance said: ‘BCP Council, like all local authorities across England, faces an unprecedented, ongoing financial crisis and the latest government settlement does not address this.
‘As a result of this severe financial pressure, the council must use all levers at its disposal to raise funds to protect essential services important to our residents.
‘Beach huts on Mudeford Spit often sell for between £400,000 and £575,000 – more than the £313,000 average price, according to the Office for National Statistics, of a home in Bournemouth, Christchurch and Poole, yet historically, owners have been given discounts on Council Tax.
‘And, while we welcome all those who want to enjoy our beautiful coastline, we must recognise that this brings extra demand for services such as beach cleaning and flood protection – the cost of which is mostly borne by our residents.
‘This change delivers fairness and consistency for all owners of second homes in the area.
‘We understand this change may be disappointing for some owners, but it is important to apply Council Tax policy consistently and fairly across the BCP area.’
