The South Lakes MP has been speaking during a debate about the urgent need for a long-term plan for affordable housing in the area.
Tim Farron focussed on the challenges facing rural areas including his constituency, largely caused by second-home ownership.
In Cumbria, house prices are an average of 10 times local incomes.
Mr Farron said: "Rural areas such as mine in Cumbria face particular challenges in tackling the issue of affordable housing. If we consider the fact that some 8% of homes in rural areas are affordable, compared with 20% across the country, we will realise how difficult it is for children who grow up in rural communities to cling on, make a living there and raise their own families when they get older, and, indeed, for workers to live in the areas in which they work.”
He called on the government to commit to building 300,000 homes per year, and asked the government to lift the borrowing cap to enable councils to borrow to build. It is thought that this scheme, backed by the Local Government Association, could lead to an extra 80,000 homes over four years.
He repeated his call for the government to support Lib Dem plans to allow second homes to be charged double council tax “to tackle the immense damage that excessive second home ownership does to towns and villages in places such as the west country, Northumberland and Cumbria”.
However, his motion was defeated due to Conservative opposition.
Commenting on the debate, Tim said: “It is clear to everyone that the government must take radical action to address the housing crisis, yet it is not willing to do so. The government must work with councils and local communities to build more affordable homes, yet the Conservatives’ main priority is to sell off social housing, leaving fewer homes for those on the waiting list. The evidence suggests that these homes won’t be replaced, and will simply end up in the private rented sector.
“Many of our local communities have been badly hit by very high levels of second home ownership, and I have been calling on the government to allow these communities to keep the money raised from second home sales to compensate them for the impact on local services, as well as to be able to raise council tax on second homes. It is disappointing that the Conservatives voted against these plans.”