What’s Happening?
1. Second Homes & Holiday Lets: A Fresh Wave of Charges
A second wave of councils across England is about to introduce or expand 100% council tax surcharges on second homes — meaning certain homeowners will see their bills double from April next year. This isn’t a small change:
- Around 38 additional local authorities plan to implement the surcharge.
- Up to 12,300 properties — mainly second or unused homes — may be hit with the premium.
- These are homes not rented out or used as holiday lets. (GB News)
This follows earlier action by hundreds of councils that have already opted to levy the premium surcharge on second homes and empty properties. (The Negotiator)
Why this matters: Many of the affected properties are owned by people who don’t live there year-round — and now councils are using the surcharge to boost revenue amid budget pressures.
Broader Context: Rising Council Tax Pressures
2. Local Authority Funding Gaps
Councils face ongoing financial strain due to funding cuts, inflationary pressures, and rising costs for essential services. Many local authorities are raising council tax to fill budget gaps:
- Some councils have already moved to the maximum allowed increases (e.g., 4.99% without a referendum).
- Others have received permission to go beyond this cap due to exceptional financial difficulties. (putney.news)
For example:
- The Wandsworth borough is phasing out historic funding advantages, meaning council tax will rise in stages as the formula changes. (putney.news)
- Somerset Council is considering a roughly 4.99%+ increase to help address a £73m funding shortfall. (Burnham-On-Sea.com)
- Rushcliffe Borough Council is planning a modest 2.46% rise for 2025/26. (nottstv.com)
- Stockport Council confirmed a 4.99% rise including an adult social care precept, equivalent to about £1.90 a week extra for a Band D property. (stockport.gov.uk)
These increases reflect a sustained trend: councils are increasingly relying on council tax to make up lost central government funding while trying to maintain services.
Who’s Affected?
Families & Homeowners
- People living in areas where councils apply the 100% second-home surcharge will pay substantially more, often double the previous tax on that property. (GB News)
- Ordinary homeowners, particularly in councils pushing close to or beyond the standard tax cap, may see incremental increases year after year.
Second Home and Holiday Let Owners
- Those with multiple properties that are not primary residences — especially unused second homes — are the most visible cohort in this “second wave.” (The Negotiator)
Local Services and Council Budgets
- Councils argue that without increased council tax, essential local services (like social care, waste collection, and libraries) could face cuts.
- With central government funding stretched, council tax becomes a key lever for local authorities to balance budgets and avoid insolvency.
Reactions & Commentary
Supporters’ View
Revenue Boost for Councils
Many local officials argue that increasing council tax — especially on unused second homes — helps shore up vital services without unduly burdening primary residents. Surcharges also encourage better utilisation of housing stock. (The Negotiator)
Equity Argument
Some planners and housing advocates say taxing unused homes more heavily can discourage property hoarding and help ease housing shortages in local markets.
Critics’ Concerns
Cost-of-Living Pressure
Households already feel squeezed by inflation and other mandatory bills; additional council tax increases add further strain. Recent analysis shows many will face rises of ~5% or more, and in exceptional cases much higher. (moneyandmentalhealth.org)
Collection Challenges
Campaigners have also criticised the harsh processes councils use to collect unpaid council tax, which can lead to severe financial distress for struggling households. (moneyandmentalhealth.org)
Fairness Debate
Some property-owners argue that blanket surcharges on second homes unfairly penalise those who already pay substantial taxes and invest in local economies — particularly in rural or high-demand holiday areas.
What This Means in Practice
| Category | Expected Impact |
|---|---|
| Primary homeowners | Generally year-on-year increases (often up to default caps) — modest but persistent hikes. |
| Second/unused homes | Many owners now face doubling of council tax in more areas. |
| Local councils | More revenue to plug gaps — but risk political backlash. |
| Renters & low-income residents | Indirect effects through service cuts or additional cost pressures. |
Bottom Line
The “second wave” of council tax changes in the UK represents a notable policy shift: local authorities are increasingly turning to council tax surcharges and higher bands to make up financial shortfalls, especially on properties that are not primary residences. This is likely to hit thousands more homes with steep increases from April 2026, even as councils try to balance budgets without cutting services. (GB News)
Council tax is becoming a more dynamic and politically charged part of local government finance, with implications for homeowners, councils, and housing markets across England (and similarly complex pressures elsew
Here’s a detailed case-study and commentary-style breakdown of the “second wave” of UK council tax increases — focusing on recent developments where thousands more homes (especially second homes) are facing higher bills and how local authorities, homeowners and critics are reacting.
What’s the “Second Wave” of Increases?
Expanded Second-Home Premiums
From April 2025, councils in England gained powers to charge up to 100% extra council tax on second homes — i.e., furnished properties not used as a primary residence under council tax rules. (GOV.UK)
In the latest wave, an additional 38 local authorities are confirmed to roll out the 100% surcharge from April next year, meaning owners will pay double the standard council tax on those properties. This could affect up to around 12,300 homes. (GB News)
What counts as a second home?
A roperty is generally considered a second home if it’s furnished but not used as anyone’s main residence. Councils may exempt some categories — e.g., if the home is for someone in the armed forces, part of the main dwelling (e.g., annexe), or actively marketed for sale/rent under certain conditions. (GOV.UK)
Case Study 1: Councils Already Charging & Expansion
Broad Adoption Across England
A government technical release shows that almost 211 billing authorities already applied the 100% premium on second homes in 2025. (GOV.UK)
Case Example:
Counties like West Lindsey previously updated policy to increase charges on furnished second homes from 90% to 100% of council tax — a jump that effectively doubles tax bills for these properties. (West Lindsey District Council)
Comment:
This widespread application shows that councils are using their new powers not just as a one-off experiment but increasingly as a regular revenue measure — feeding into a broader trend of maximising local tax bases amid funding pressures.
Case Study 2: Consultation and New Proposals
Stratford-on-Avon Council
Stratford-on-Avon District Council has launched a consultation on applying the full 100% premium to second homes starting April 2027 if agreed. The process includes a six-week consultation ending in early 2026, with residents to be informed of decisions before March. (theintermediary.co.uk)
Key Details from the consultation:
- Current position: Second homes pay the standard rate now.
- Proposal: Raise to 100% premium (doubling tax).
- Rationale: Encourage property availability and help fund affordable housing and essential services. (Stratford-on-Avon District Council)
Comment:
Consultations like this illustrate how councils are carefully balancing community feedback with financial necessity — using phased implementation, rather than sudden changes that could shock homeowners.
Case Study 3: Scotland’s Approach
West Lothian Council Example
In Scotland, local authorities also have powers to raise council tax on second homes by up to 100%. West Lothian Council’s budget discussions included consideration of this change, which would affect roughly 86 properties and contribute to balancing a large budget gap. (West Lothian Council)
Comment:
Though the scale here is smaller than in England, the principle is similar: councils are leveraging council tax variations to address financial shortfalls — even when second homes are relatively few.
Impact & Broader Trends
Revenue and Housing Supply Goals
- Councils justify these surcharges for raising crucial funds — particularly as funding from central government lags behind demand for services.
- Some argue these premiums also incentivise owners to sell, rent long-term, or otherwise return housing stock to the local market. (theintermediary.co.uk)
Rising Numbers of Second Homes
Data on housing stock shows the number of second homes reported in England has jumped year-on-year (~279,870 homes), which partly explains why councils are focusing on this segment for additional revenue. (ehnetwork.org.uk)
Reactions & Commentary
Supportive Views
- Local authorities and some community advocates say these premiums help protect local services and address housing shortages by decreasing idle properties.
- Supporters note that the additional revenue can be earmarked for things like affordable housing, homelessness services, or general council budgets.
Criticisms & Concerns
- Homeowners facing double bills — particularly in popular rural or coastal areas — often see the extra tax as punitive, especially if they intended to use the property personally. (Reddit)
- Equity issues arise because wealthier owners of multiple properties pay more tax even if they contribute less to local service demand.
- Some campaigns highlight administrative headaches or disputes — e.g., councils misclassifying properties or sending incorrect premium notices to owners. (Reddit)
Broader Tax Policy Context
This surge in second-home premiums sits alongside other proposed tax changes — including potentially higher council tax for high-value homes (sometimes described as a “mansion tax”) — which have sparked debate on fairness and valuation methodology. (The Scottish Sun)
Summary of Key Points
| Aspect | What’s Happening |
|---|---|
| Policy change | New powers since April 2025 allow councils to levy up to 100% premium on second homes. (GOV.UK) |
| Current adoption | Hundreds of councils have applied the surcharge; more are joining. (GB News) |
| Homes affected | Up to ~12,300 second homes face doubled bills in the next wave. (GB News) |
| Motivation | Boost council revenues and potentially free up housing stock for local residents. (theintermediary.co.uk) |
| Reactions | Mixed — from support for funding essential services to criticism about fairness and implementation. (The Guardian) |
Final Take
The “second wave” of council tax increases targeting second homes represents a significant shift in local taxation strategy — one that balances revenue pressures, housing supply concerns and political debates around fairness. While councils see these measures as necessary tools to sustain services and encourage better use of housing stock, many homeowners and critics view the surcharges as punitive and sometimes poorly implemented, especially where property classification disputes occur.