Council Tax to double for second homes

May 9, 2024
Information published was correct at the time of writing

Council Tax 2024 Changes - what you need to know

Owning a second home has long been a symbol of financial security or a lifestyle choice for many in the UK. However, recent developments in council tax regulations are set to shake up the landscape for those owning or considering purchasing a second property.

GOVERNMENT INTERVENTION

A new legislation has passed where local councils were granted the authority to exercise their discretion in imposing supplementary council tax charges of up to 100% on furnished properties that are not utilised as primary residences. These changes will come into effect in April 2025.

The decision to double council tax by 80pc for second-home buyers stems from the government’s efforts to address housing affordability and availability issues. By discouraging those from purchasing second homes for purposes other than using them as a main residence, this move aims to free up properties for local first-time buyers and alleviate pressure on the housing market.

THE IMPACT

For those contemplating purchasing a second home, the council tax hike represents a considerable financial burden. What was once seen as a lucrative investment may now come with a hefty price tag. Additionally, existing second homeowners will need to reassess their budgets to accommodate the increased tax liability, potentially impacting their overall financial plans.

Last year, 78 councils planned to impose the increase, but the number has now reached 153, around half of all local authorities. [1]

ATTITUDE TOWARDS SECOND HOMEOWNERS

According to a recent YouGov survey, a significant portion of respondents, comprising 32%, expressed support for the proposition of doubling the rate of council tax for second homes in the UK. Interestingly, this stance was met with considerably less opposition, with only 13% strongly opposing the idea. [2]

This data depicts a notable level of public endorsement for measures aimed at curbing the proliferation of second home ownership and addressing housing affordability concerns.

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Source:
1. Council tax to double for 80 per cent of second homes (telegraph.co.uk) 31/03/2024
2. Short-term lets rules to protect communities and keep homes available – GOV.UK (www.gov.uk) 09/04/2024
3. Would you support or oppose charging double the rate of council tax for second homes? | Daily Question (yougov.co.uk) 09/04/2024