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Category: Housing Industry / Tourism

Tourist town plans holiday home restrictions as locals priced out

Saturday, 4 Jun 2016 07:42:54 | James Glenday

About 25 per cent of houses are second homes in St Ives. (ABC News: James Glenday)

Even by Australian standards, St Ives on the Cornish coast is simply stunning.

Children build castles on sandy beaches, surfers wait at the back of a decent break and fishermen flick lures into crystal clear seas.

But for some locals, the town's charm comes with a curse.

"Twenty-five per cent of the houses in St Ives are second homes," conservative mayor Linda Taylor says.

"Prices have gone up and quite a lot of people who live and work here can't afford to buy.

"In winter you can go down certain streets, certain lanes and you will not have a light on."

So residents, who fear the town's sense of community is at risk, have taken action.

St Ives Mayor Linda Taylor stands with the ocean in the background. Photo: St Ives Mayor Linda Taylor says many residents can't afford to buy. (ABC News: James Glenday)

At a recent referendum, 83 per cent approved the council's neighbourhood plan, which aims to reserve all new homes exclusively for locals.

Anyone who already owns a property will only be allowed to buy an existing house in the town.

"If we didn't act … perhaps 20 to 30 years time this could possibly be a resort of second homes," Ms Taylor said.

"For the community that's not such a good thing."

As we lug our camera equipment through the winding cobbled streets, which are home to world-class art galleries and restaurants, many stop to tell us they are in favour of the move.

"House prices and rents have been soaring here and wages haven't," local resident Matt Hayter said.

"A lot of people only earn 15,000 pounds ($30,500) and a lot of fairly average homes here cost more than 20 times that."

Those in favour of the change hope land values will drop, so new homes can be built more cheaply.

"I don't agree with how they've done it … but people have been pushed into it," taxi driver John Chard said.

"Their own families can't buy anywhere to live in their own town."

'NIMBY-ism' on a grand scale?

St Ives architect and developer Steve McTeare points off frame on a construction site. Photo: St Ives architect and developer Steve McTeare says the restrictions will not work. (ABC News: James Glenday)

There are a number of building sites scattered throughout St Ives.

On one overlooking the town's harbour, architect and developer Steve McTeare is looking at plans for a row of $1.5-million townhouses.

All are likely to be bought by investors, many from London, where housing prices have soared in recent decades.

"The message has been put out … that if you ban second homes then you'll have a lot of homes for local people coming through and being built," he said.

"It just simply doesn't happen."

He is challenging the decision in the High Court and does not think it will work anyway.

"This will push up the prices of existing houses even more and will prevent the building of any new houses in the town," Mr McTeare said.

"It's NIMBY-ism. A lot of older people don't want the town to change."

Divide between old and young

St Ives chef James Watson holds a glass of wine. Photo: St Ives chef James Watson is worried about the impact on tourism long-term. (ABC News: James Glenday)

In a restaurant a block back from the harbour, that view is largely echoed by chef James Watson.

"There is a certain age group of people who have made a lot of money out of the town over the years," he said.

"The younger generation is not considered enough about what we want for the town."

\Mr Watson grew up in St Ives and is worried what the move might do to tourism and his business long-term.

"The pilchards are gone, the mining has gone, the fishing has gone, what we have down here is tourism," he said.

"It almost smacks like, 'we'll take your money, you can come down here but you can't live down here'."

We've sent a ripple: St Ives mayor

St Ives is not the first area to introduce a new second homes rule — a similar measure was put in place in Devon, though on a smaller scale.

But Mayor Taylor said she had been overwhelmed by the interest from towns around the world, where housing affordability is a major issue.

"My mobile phone, the town council's phone, is absolutely red hot," she said.

She believes many other councils across the country are watching closely and may try to follow suit.

"We've sent a ripple and that ripple is really travelling around the UK, and it's certainly travelling overseas," she said.

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