Campaigners have voiced concerns that the introduction of a 100% council tax premium on second homes in England will do little to alleviate the housing crisis. Some have gone as far as to label the policy a “naked cash grab” rather than an effective solution to housing shortages.
Exclusive data reveals that approximately 75% of English councils will implement the discretionary charge from April, effectively doubling the council tax on properties classified as second homes. England is following in the footsteps of Wales, which already enforces a similar premium.
Impact and Implementation
According to government data, there are around 557,000 second homes in England. Coastal hotspots such as Cornwall, Torbay, Norfolk, and Somerset, as well as towns, inner-city areas, and London boroughs like Wandsworth, Camden, and Hackney, will introduce the tax. Analysis suggests that the measure, adopted by over 200 councils, could generate an additional £445 million in revenue.
However, Elliot Keck from the TaxPayers’ Alliance argues that the charge is fundamentally unfair. “It’s a very naked cash grab,” he said. “Council tax has always been linked to the usage of local services. If someone only uses a second home for a couple of months a year, they are utilising services far less than a permanent resident. Logically, they should receive a discount, not be penalised.”
Loopholes and Concerns
Critics have also highlighted potential loopholes in the scheme. Owners may be exempt from paying the premium if the property is on the market, provided by an employer, or undergoing significant refurbishment.
Adam Hug, housing spokesperson for the Local Government Association, acknowledges the limitations of the policy. “No one is overstating the power of this measure. It is a small nudge in the right direction and one of several tools available to local councils. On its own, it will not resolve the housing crisis, but it provides councils with an additional resource to manage local housing supply.”
Calls for Stronger Action
Cornwall, often considered the second home capital of England, has been particularly affected by rising house prices and limited affordable housing. Cath Hayes, co-founder of the campaign group First Not Second Homes, believes that doubling council tax is insufficient. “I think it needs to be more than double because, as it stands, it is not a deterrent. If you can afford two homes in Cornwall, the additional charge is unlikely to be an issue,” she stated.
Jenna Jones, a café chef from Trevone, North Cornwall, who lives in private rented accommodation with her husband and five children, has struggled to secure stable housing. “It has been the most horrendous struggle of our lives. Before finding our current rental, I applied for over 23 properties in Cornwall,” she shared.
Her family pays nearly £2,000 a month in rent, yet home ownership remains out of reach. “This has consumed our family life. None of my colleagues can afford local rents, let alone buy a property. We are stuck between a rock and a hard place, and we need a real solution.”
Will the Policy Help?
Ms Jones remains sceptical that the premium will free up housing stock. “It won’t make a difference. For many second-home owners, a doubled council tax bill is like losing a fiver from their pocket.”
The Ministry of Housing, Communities and Local Government defended the policy, stating its commitment to fixing the “housing crisis we have inherited”. A spokesperson noted that an excessive number of second homes in an area can drive up housing costs and negatively impact public services. “That is why local authorities will be able to apply a premium of up to 100% extra on council tax bills for second homes. This will provide additional funding for local areas to address the impacts of second homes and protect their communities.”
The Verdict
While the additional tax revenue may aid local councils, it remains uncertain whether the measure will genuinely improve housing availability. Critics argue that without further interventions, such as stronger regulation on holiday lets, increased social housing development, and stricter controls on property speculation, the housing crisis will persist. Whether this tax is a meaningful step towards reform or simply a revenue-generating measure remains a matter of debate.
