Some 75% of councils in England will introduce sharply higher council tax on second homes from next week.
Sky News has produced an exclusive report suggesting that the likely doubling of council tax introduced by a forecast of 200 councils will generate an extra £445m in revenue.
Government data shows there are around 557,000 second homes in England. Hotspots such as Cornwall, Torbay, Norfolk and Somerset are introducing the tax – but there are many towns and inner-city areas such as Rochdale and Bristol, and London boroughs including Wandsworth, Camden and Hackney, also bringing it in.
Sky quotes Elliot Keck from the TaxPayers’ Alliance saying the premium is “a very naked cash grab. If you have a second home in an area that you use for only a couple of months a year, you’re actually using services much, much less than if that was someone’s primary property. So, if anything, really you should actually be getting a discount on your council tax, not a premium.”
Adam Hug, housing spokesperson for the Local Government Association, says it is merely a “nudge in the right direction.” He is quoted by Sky saying: “It is one of a suite of tools that can be used. In and of itself it will not solve the housing crisis, but it is a step in the right direction if councils wish to use that to better manage their supply.”
However Cath Hayes, co-founder of the Cornish campaign First Not Second Homes states: “In my opinion, doubling the council tax isn’t sufficient. I think it needs to be more than double – because it’s not a deterrent, it is a tool among other things. If you can afford a house in Cornwall, you’re doing well. If you can afford two houses – then it’s not a deterrent.”
In a statement the Ministry of Housing, Communities and Local Government told Sky: “Too many second homes in an area can drive up housing costs and damage public services. That is why local authorities will be able to apply a premium of up to 100% extra on the council tax bills of second homes to give local areas extra cash to address the impacts of second homes and protect their communities.”
This article is taken from Landlord Today