Thus the principle of relating council tax liability to the likely use of services by the occupier of the property was gone.
From then on, it was only a matter of time before councils would seek to see second homeowners as a source of additional income on the assumption they must be wealthy.
Thanks to Michael Gove and his Levelling Up and Regeneration Act 2023, English councils were given the power to levy a 100pc premium (a doubling) on second homes from April 2025 if they gave a year’s notice. In Scotland and Wales similar laws were introduced from April 2024, with Wales allowing a 300pc charge after three years, a policy being adopted by Bridgend County Borough Council.
There are some councils that still provide discounts for second homeowners in exceptional circumstances, such as Birmingham City Council that provides a 50pc discount when a second home is part of an employment or when properties are left vacant due another property being provided elsewhere for work purposes (although this is restricted to members of the armed forces and ministers of religion).
Unusually, Chelmsford still provides a 10pc discount for second homeowners but has announced on its website that from April 2025 it shall be charging 200pc of liable council tax. Using the below average, Chelmsford City council tax bands for 2024/25 mid-range Band D property will rise from £2,084 per year (average £2171) to £4,168 before any allowance for increasing the tax for inflation or policy decisions – for the highest Band H the rise is from £4,168 to £8,336.
Latest figures from the Office for National Statistics for 2018-19 reported 2.4 million households in England having at least one additional residential property, primarily used as holiday homes (by family, friends or let to others as a holiday let) or are occupied while working away from home.
While the majority are let out to others 772,000 households reported having 873,000 second homes of which 495,000 were located in the UK.
Reasons for having a second home were 39pc as a holiday or weekend home; 35pc for long term investment or income; and for 16pc it was previously the main home; with the balance being a wide range of other circumstances.
