PEOPLE who buy second homes in the Yorkshire Dales are now helping pay for affordable homes for struggling first-timers.

Almost £700,000 raised from owners of holiday homes and weekend cottages is to be pumped into affordable housing initiatives in Richmondshire and Hambleton.

The money has been raised from higher rates of stamp duty on second homes specifically to support local community housing projects aimed at first-time buyers.

Richmondshire is to receive £493,000 while Hambleton, which has a lower proportion of second homes, is to get £195,000.

The Government wants the cash to “bridge the viability gap” to boost the number of affordable housing schemes, and produce more homes for rent, shared ownership and discounted sale.

The leader of Richmondshire District Council, Cllr Yvonne Peacock, described the announcement as “excellent news.”

“This represents a great opportunity to kick-start our efforts to provide more local, affordable housing in the Yorkshire Dales communities most affected by second homes,” she said.

“We have a number of sites which may well be unlocked by this money and, along with staff and councillor colleagues, we will be looking to put it to good effect as soon a possible.”

Local MP Rishi Sunak said the impact of second home ownership on areas like Richmondshire was well known and a source of frustration.

“While not entirely negative because of the benefits for tourism, lots of second homes do crowd out first-time buyers and contribute to a shortage of available properties,” he said.

“Often second homes stand empty for a large proportion of the time which can affect community cohesion, the age profile of an area and distort the local housing market.

“This new fund will help tackle that by boosting supply and making sure community groups are at the heart of delivering new homes.”

The grants to Richmondshire and Hambleton are for the current year and further grants will be made next year, offering an income stream for affordable housing projects.

Housing Minister Gavin Barwell said the new funding would be distributed via local councils who knew their area’s needs best and would put communities centre stage in deciding what type of housing what was most needed.

The extra money comes from the Stamp Duty Land Tax surcharge on additional properties to communities affected by second home ownership which was announced in the 2016 Budget.