Wells' mayor has admitted he is "not convinced" that doubling council tax for second homeowners will solve the town's problems.
Despite admitting the move would be a "step in the right direction", Mike Gates said he was sceptical over the plans solving a lack of affordability for young people.
Last week, councillors at North Norfolk District Council voted in favour of a 100pc increase for second homeowners in the area.
It is thought the move could raise up to £8.2m each year, money the local authority would want to plough into building more affordable homes.
The tax hike would not be introduced until April 2024 and is dependent on the Levelling-Up and Regeneration Bill, which is currently making its way through parliament.
If passed, the bill would give councils the power to increase council tax bills for second homeowners.
But, while acknowledging that Wells has a "problem" when it comes to second homes, Mr Gates said other solutions needed to be found.
"We have got a problem with second homes in Wells and we are looking for any mechanism to address that issue," he added.
"It is a big issue in the town and we have to be careful to not turn into a dormant town which is forcing out all the young people.
"Whether increasing the council tax will help resolve the issue, I'm not convinced, but it is a step in the right direction and shows we are keen to address the issue.
"If you increase the council tax for homes, it will increase the revenue of the district council. Affordable homes are another big issue in Wells so, anything that will help alleviate that issue, we are very supportive of it."
Against this backdrop, the Wells Neighbourhood Plan - which will guide development in the area over the next 20 years - is in the process of being finalised.
A spokesman for the neighbourhood plan committee said members would be commenting on the potential increase of council tax due to it being a "political issue" beyond their remit.
North Norfolk has almost 5,400 second homes - the highest proportion in England and Wales outside of London.
NNDC councillors also voted last week to give people repairing ‘uninhabitable’ homes a 50pc council tax discount.
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