Second-home owners could soon pay twice the amount of council tax as government prepares to hand local authorities more powers to raid holiday homes
- One in four councils indicated they will double council tax for holiday homes
Second-home owners could soon be forced to pay twice the amount of council tax as the Government prepares to hand local authorities more powers to raid holiday homes.
It’s understood one in four councils in England have already made their minds up and agreed to double the levy – which could generate an additional £200million.
More than 100,000 holiday homeowners are set to see their bills rise at the first given chance, including in tourist hotspots in Devon, the Lake District, Norfolk and Cornwall, which have already approved the change, The Telegraph reports.
If the Labour Party come into power, they have already pledged to install further measures to target second-home owners.
The debate over whether second homeowners should be charged a higher rate of council tax has reignited in recent weeks. Tens of thousands of properties across the country sitting empty has led to locals being priced out their hometowns, prompting a wave of tax proposals by local governments.
Second-home owners could soon pay twice the amount of council tax as the Government prepares to hand local authorities power to raid holiday homes. Pictured: Salcombe in Devon – a haven for holiday homes
It’s understood one in four councils in England have already made their minds up and agreed to double the levy, including Cornwall (pictured). Vandals have previously targeted second homes in Cornwall
Local authorities will be permitted to implement council tax increases on second homes after the Government’s Levelling Up and Regeneration Bill goes through. It is backed by all parties and the changes could be brought in by April 2025.
READ MORE: Should wealthy second-home owners pay DOUBLE council tax?
Second-home owners and tourism industry chiefs have told The Telegraph that they feel they are being ‘scapegoated’ to hide to Government’s failure to build more affordable housing.
One former minister warned councils to ‘use the powers wisely’ because ‘not all second-home owners are evil’. There are fears that a fall in tourism could damage the local economy.
‘Councils have got to be careful what they wish for, because if they turn off too many second-home owners, they might find that they lose spending power, especially in the summer period when they need to make money,’ the ex-minister said.
‘They have to think how much they want to push second-home owners before it becomes counterproductive, they have to find a balance.
They added that more working from home means people spend longer periods of time on ‘work-cations’, adding: ‘They have to use these powers wisely because not all second-home owners are evil.’
Housing Secretary Michael Gove has publicly declared his intentions to end the ‘scourge’ of empty properties to prevent ‘desperate’ families being ‘pushed out’ their hometowns.
Mr Gove also wants to clampdown on a loophole where owners can avoid council tax by registering as a holiday let. The Surrey Heath MP hopes to force second home owners to get planning permission to do this.
Housing Secretary Michael Gove (pictureD) has publicly declared his intentions to end the ‘scourge’ of empty properties to prevent ‘desperate’ families being ‘pushed out’ their hometowns.
One former minister warned councils to ‘use the powers wisely’ because ‘not all second-home owners are evil’. Pictured: Aerial view of Waterhead and Ambleside in the Lake District
The councils’ own analysis estimates that the hike could generate an additional £200million. Pictured: Burnham Market which is nicknamed Chelsea-on-Sea because of its large number of well-heeled second home owners
The proposed changes come despite limited success being seen in Wales. An almost identical policy was introduced four years ago. The Labour-led administration has since handed powers to councils to charge up to 300 per cent council tax or force homeowners to rent their properties for half the year.
The Telegraph’s investigation found that 78 out of the 297 authorities responsible for council tax have already given their seal of approval for the move. The votes have been collected because councils must give a year’s notice before hiking taxes.
Some 40 per cent of the 256,913 properties (107,594) registered in England in October 2022 could be hit with increases in council tax as a result of the changes.
The councils’ own analysis estimates that the hike could generate an additional £200million.
Only Richmond in London and Nuneaton and Bedworth have suggested they are not indenting to increase council taxes.
Local leaders believe the move will raise money as well as increase affordable housing.
Government figures released last year showed 257,331 homes in England were unoccupied for at least six months. But there is little fear the tax changes would hurt tourism.
Glen Sanderson, who leads Northumberland County Council which has voted for the tax, said earlier this year: ‘It has been a growing concern to local residents that some of our villages have too many second homes whilst at the same time there is a shortage of local affordable housing.’
Scotland is also looking to charge second-home owners double the full rate of council tax under new plans. The latest figures show that in January 2023 there were 42,865 long-term empty homes in Scotland.
Source: Read Full Article