COUNCILLORS have backed moves to ban new flats and houses from being sold as second homes and investment properties.

The decision was made after they were told that more than 2,000 homes were registered as second homes for council tax purposes.

They were also told that more than 3,300 properties were unregulated short-term holiday lets and that one in 37 – or 3,296 private homes – in Brighton and Hove were left empty.

The vote to explore ways to impose “principal residence restrictions” on new builds came at a Brighton and Hove City Council meeting at Hove Town Hall.

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Labour councillor Gill Williams, who previously chaired the council’s Housing Committee, called for a report to look at ways to impose “principal residence restrictions” on new builds.

Councillor Williams, who represents East Brighton ward, said: “Many families, key workers and people of all ages are being priced out of our city by the lack of affordable housing.

“Our communities are suffering because of the sky-rocketing costs of homes – and lack of control on the second home market is a major contributor to this.

“We must do all we can to prevent the development of high-cost apartments such as the gasworks, which is looming, and these are marketed specifically at the wealth investment market.”

She said that the gasworks site developer had confirmed that its marketing strategy included targeting investors.

Such strategies prevented people who were born and grew up in Brighton from being able to have a secure and affordable home here, she added.

Green councillor David Gibson, who co-chairs the Housing Committee, said that the idea was worth exploring.

He said: “We are very well aware, particularly in central wards like St Peter’s and North Laine, that communities are seriously affected by both second homes and Airbnb. This is disruptive and undesirable.

“There is a frustration at the broken housing market in our city and the lack of affordable housing.

“The housing crisis and lack of affordability mean people born and bred in Brighton end up having to move out to Worthing simply to get an affordable home which is a crying shame.”

Councillor Gibson said that he wished that the council had the power to control rents because private sector rents were too high.

Conservative councillor Mary Mears said that a London School of Economics (LSE) study had found that a similar policy in Cornwall had fuelled house price rises and hurt the local economy. Councillor Williams disagreed.

Councillor Mears said: “If the Labour and Green coalition on housing decide to implement this policy in Brighton and Hove, it will inevitably have a similar negative impact and cause a real rise in house prices here, putting housing further out of the reach of people and hurting the city as it tries to recover from the pandemic.”

Councillor Mears said that the proposals showed a level of envy, adding that the council should be extremely careful about where it might take the restrictions.

She also said that any ban could also affect MPs and councillors locally who let out properties or who had second homes.

The council voted 23 to 11 to approve the motion. A report is due go to the Housing Committee and the council’s Tourism, Equalities, Communities and Culture committees within the next six months.