Thousands of homeowners could see their council tax bill double next year after rule change

The sharpened rules to double council tax on long term empty properties came into force on April 1, and could see homeowners paying double by next April.

Under the Levelling Up and Regeneration Act 2023, councils were given the discretion to charge additional council tax of up to 100 per cent on furnished homes not used as a sole or main residence.

This means second homeowners could have to pay thousands of pounds more each year in second home council tax.

Each council will need to vote on whether to charge additional council tax on second homes and give one year's notice before implementing the charge.

As councils must determine at least one year in advance of introducing a second homes premium, the earliest a council can utilise the second homes premium is April 2025.

The rules will apply when a property has been empty for 12 months, rather than the current two years.

Properties empty for at least 12 months will face 100 per cent premiums – effectively doubling council tax bills – and this will increase to 200 per cent for homes empty for at least three years, and the maximum 300 per cent for homes left empty for more than ten years.

Around 155,200 properties in the UK were recorded as second homes in the 2021 census, meaning that 84 per cent of those are set to be charged at double rates.

An average band D property in certain areas that have been empty for 12 months will see their council tax bill reach over £4,000.

At least 153 local authorities will impose the inflated levy next April, analysis by The Telegraph has found. The move will affect as many as 130,000 homes.

The charge will raise at least £215 million for councils and result in owners paying thousands of pounds extra a year in tax.

The measures put forward by Michael Gove are designed to improve the availability of housing stock and make it more difficult for people to sit on a property as an investment or as a second home.

However former party leaders have stated “we should not be attacking those people who have worked hard and tried hard”.

The Telegraph asked all councils with the power to levy council tax about their plans on charging second homes double.

Cornwall appears to be the area most affected as they plan to raise an estimated £24million. This would see the council charge double tax on 12,679 second homes.

They Telegraph stated: “Band D homes in the county currently pay £2,068.04 a year, meaning a second home in that category would pay at least £4,136.08.

“Herefordshire could raise around £12million by imposing double tax on its 6,900 homes second homes.

“Similarly, £10million could be raised from taxing 5,200 properties in Westmorland and Furness.

“South Hams and Northumberland are also expected to raise £7.9million and £7.1million respectively from the measure.”

However, a council spokesperson explained the decision “aims to encourage property owners to use homes for local families who need them most, rather than keep them empty”.

It will also “provide extra income to contribute towards vital local services”.