A 100% council tax surcharge will be introduced in a number of areas, including Wiltshire, Hillingdon and South Norfolk, from April, instantly doubling annual bills for thousands
Thousands of people with holiday cottages and rural retreats are steeling themselves for another financial hit as councils prepare to roll out a second wave of hefty tax increases. As many as 12,300 second homes across England are poised to be slapped with a 100% council tax surcharge from April, effectively doubling annual bills overnight for owners who don’t let out their properties.
This comes in the wake of numerous cash-strapped local authorities rushing to utilise new powers that permit them to impose additional charges on second homes, regardless of whether owners make minimal use of local services. An analysis conducted for The Times reveals that 38 councils will implement the full 100% premium next year, with others planning to introduce similar charges from 2027.
This follows the 211 councils – approximately 71% of authorities in England – which levied the surcharge as soon as legislation permitted last April. Property experts are warning that this is just the tip of the iceberg.
Aneisha Beveridge of Hamptons said: “We’re entering a second wave of charges as councils look for fresh ways to boost their budgets. The big second-home destinations were quick to introduce the surcharge, but now others are set to follow.”
Among the councils preparing to hit second-home owners hardest is Wiltshire, where more than 1,300 properties face the charge. The London borough of Hillingdon has nearly 750 second homes caught by the policy, while South Norfolk plans to apply the surcharge to most of its 600 properties.
In Stratford-upon-Avon, more than 800 homes could see bills double from April. Despite the rapid spread of the tax, 47 councils still have no plans to introduce any form of surcharge – though they are under mounting pressure to do so as funding gaps widen.
Cherwell, near Oxford and run by the Liberal Democrats, could raise £1.6m, while Kensington & Chelsea, a Conservative-controlled authority, could rake in £12m if it brought in the charge. In November, councillors in Kensington & Chelsea admitted they may be forced to act after the Government’s fair funding review threatened to divert millions of pounds to poorer areas.
Not every second-home owner will be hit immediately. Some properties are automatically exempt – including homes tied to employment or those restricted by planning rules. Others can dodge the surcharge temporarily if the property is actively marketed for sale or rent.
Hamptons analysis found that 17% of the 236,000 second homes in areas that have already adopted the surcharge were exempt. But campaigners say many households will still be hit.
Elliot Keck of the TaxPayers’ Alliance said: “For thousands of households across the country, the new year threatens a crippling tax raid on their properties.
“As well as yet another year of inflation-busting council tax rises, many will also face their bills being doubled as local authorities levy punitive charges on anyone who dares to be affluent. There is no justification for this, given that second-home owners will make much less use of council services.”
