Council Tax Set to Double on Second Homes in Over 200 Areas Starting April
Local authorities in England and Wales plan a big change. They set council tax rules to charge double on second homes from 1 April 2025. More than 200 councils use this change to ease housing shortages and to bring in more money as budgets shrink and prices rise.
Rising Costs for Second Homeowners
Owners of second homes must pay twice the council tax. These homes serve as furnished spaces not used as the main residence. For example, those in Band D now pay about £2,171. Soon, their bills can reach around £4,342 per year. Areas like Cornwall, Norfolk, and Somerset join this plan. The intent is to make housing costs lower for local families.
Sky News estimates this change could give an extra £445 million to local councils. Each council must vote on the plan and tell residents one year before starting.
Rationale Behind the Change
Local governments need funds due to less help from central bodies. Jonathan Hopper, Chief Executive at Garrington Property Finders, said many councils face cash issues. He noted that most are likely to use this new power. In areas with many second homes, councils see this as a simple way to raise money without much local protest.
Supporters see the change as a way to use empty homes. They hope more families can live in these houses. Jeremy Leaf, a north London agent and former residential chairman at RICS, said, “Any step that helps bring second homes into single family use should be welcome.”
Potential Repercussions
Some worry about the plan’s effects. Critics say not every second home belongs to a wealthy city dweller. Many families hold these homes for years and use them to support the local scene. They fear that double tax may force some owners to turn homes into holiday lets and hurt local rents.
Hopper also asked a careful question about what might follow. Once councils use these kinds of charges, one might ask what comes next. It is possible that higher council tax rates may be set in the future as policies shape housing behavior with taxes.
Impacts on House Prices and Market Dynamics
Some believe the change will cool demand in certain regions. In turn, this may let more houses come on the market and put local prices at ease. Meanwhile, experts say that factors like interest rates, mortgage choices, and planning rules will also affect national house prices.
Hopper pointed to councils in Wales. There, steep surcharges on second homes lowered demand in coastal areas. Yet, first-time buyers did not see a big benefit. The homes used as second residences are often not right for larger families. This adds problems for those trying to enter the house market.
Conclusion
Many councils doubling the council tax on second homes shows a big change in local housing plans. This shift may change how homes get used and occupied in communities. Homeowners, investors, and those interested in houses for groups should stay aware of these updates. They can affect market trends, housing supply, and long-term plans.
Over time, as local councils manage money issues, we may see further changes in property rules across England and Wales.
Sources
- Sky News on Council Tax Increases
- This is Money Article on Local Authority Taxes
- Garrington Property Finders Analysis
- Royal Institution of Chartered Surveyors Commentary
Keep in touch with trusted sources and experts to learn more about property changes and local tax rules.
Disclaimer: This article has been generated by AI based on the latest news from Google News sources. While we strive for accuracy, we recommend verifying key details from official reports.
