Council tax to double for 80pc of second homes

More than 150 councils will impose inflated levy in move affecting 130,000 properties

‘This is something Gove should have stayed well away from. It will just get people annoyed’

MORE than three quarters of England’s second home owners are set to be charged double council tax next year, under new rules introduced by Michael Gove.

Analysis by The Telegraph has found that at least 153 local authorities will impose the inflated levy next April, a move that is likely to affect as many as 130,000 homes.

About 155,200 properties in England were recorded as second homes in the 2021 census, meaning that owners of 84 per cent of those are set to be charged at double rates. The charge will raise at least £215million for councils and result in owners paying thousands of pounds extra a year in tax.

The Government has been accused of waging a war on second homes. The Budget removed tax relief from those who run short-term holiday lets such as Airbnb and new rules from Mr Gove’s department mean that people wishing to rent out a short-term holiday home for more than 90 days a year must apply for planning permission.

Sir Iain Duncan Smith, the former Tory leader, said the additional charge was “something Michael Gove should have stayed well away from”.

“It will just get people angry and annoyed. We should not be attacking those people who have worked hard and tried hard. The idea that everyone is going to flock there to buy homes is not right. This policy could harm communities which rely on tourism.”

Mr Gove said last year that district and unitary authorities will be given the power to charge double the rate of council tax on second homes from April 2025.

He introduced the plans at the behest of councils and MPS who said that second homes were pushing up house prices in holiday areas, pricing local people out of the market. But critics say second homes bring investment into seaside and country communities. The Telegraph asked all councils with the power to levy council tax about their plans on charging second homes double. Last year, 78 councils were planning on imposing the increase but the figure is now 153, around half of all local authorities.

The Government is yet to release specific guidance on which homes can be landed with a double council tax premium. However, it is due to be brought in from next April despite research commissioned by the Welsh Government showing there is “limited evidence of the effectiveness” of an almost identical policy introduced in Wales five years ago.

However, The Telegraph analysis indicates charges could raise more than £215 million for local authorities.

The most affected area is Cornwall, which plans to charge double council tax on its 12,679 second homes, which could raise an estimated £24million. Band D homes in the county pay £2,068.04 a year, meaning a second home in that category would pay at least £4,136.08.

Meanwhile, 6,900 homes in Herefordshire could be hit with the premium, raising £12 million, while £10million could be raised from 5,200 properties in Westmorland and Furness.

Cash-strapped councils in urban and commuter belt areas have also pushed through the second home premium.

Second homes in Tunbridge Wells, Kent, will be taxed at double rates even though this will raise just £64,000 from 34 properties. Gravesham council has brought in the premium even though it will be charged on only 21 properties.

Greg Smith, the Tory MP for Buckingham, said: “Councils want to target second home owners to raise revenue, but

there is a stark reality here that most second home owners are people stretching themselves to have a modest investment, saving for their retirement or securing their future.

“It’s not right to lump in everyone as if they are all big corporate property giants. Conservatives are about encouraging people to do the right thing, and for many years property has been the best route to save, to invest and plan for the future.”

Inner-city councils are keen to bring in a second home premium in the hope owners will sell up or decide to rent out their property. Hackney council in London has said it will bring the levy in.

On top of the 153 councils, a further 15 are considering proposals to bring in the levy or are planning to introduce it from 2026. Elliot Keck, of the Taxpayers’ Alliance, said: “Councils aren’t fooling anyone with their increasingly creative ways to pick the pockets of taxpayers.”

Mr Gove, the Levelling Up Secretary, has defended the increase in council tax. He said he wanted to end the “scourge” of empty properties so “desperate” families were not “pushed out”.

The ability to double council tax rates was meant to start this April, but delays in getting the Bill through Parliament mean it will not start until 2025. Local authorities will be able to implement the extra tax once the Government’s Levelling Up and Regeneration Bill passes its final stages.

Council tax for all homeowners will go up today. For the first time, bills for the typical Band D home will exceed £2,500 in four local authorities.

A spokesman for the Department for Levelling-up, Housing and Communities said it expected councils “to take due care when considering” whether to apply the premium on second homes.