A Labour-run council has been criticised after introducing a second-home council tax on 33 homeowners. Critics said Rochdale council undertook a “cash grabbing” move, given that properties account for such a small proportion of homes in the area, although the council argued it would be put to good use for the community.
Rochdale council introduced a 100% council tax levy on second homes from April 1, a change made possible through a law passed by the Conservative government intended to ease housing shortages. Councils were instructed to introduce the premium where “appropriate” and to “take into account local circumstances”, as per government guidance, and Rochdale council said it would raise £60,000 in additional income when the idea was floated in 2023 with 33 impacted houses.
However John O’Connell, chief executive of the TaxPayers’ Alliance, said it was a “cash grab”, given that the properties made up a small portion of the housing stock.
He said: “These extortionate premiums were supposedly brought in to ensure that areas with high levels of second home ownership contributed to the local area.
“Even though that policy is wildly misguided, there is no excuse for councils to introduce it in areas with as little as just 33 second homes.
“It will be of little surprise to taxpayers that politicians have spied an opportunity for a cash grab, and seized it with both hands.”
Rochdale council confirmed the number of second home properties now stands at 245, or 0.2% of the housing stock, reported The Telegraph. This marks a jump from the 0.04% property share of the 33 homes, which were expected to raise £60,000.
Councillor Carol Wardle, Rochdale’s cabinet member for finance, said: “In November 2023 when this premium was approved, it was in addition to the removal of discounts on empty properties and on top of other measures aimed at persuading owners to bring properties back into use rather than leaving them empty.
“Our approach is in line with the majority of other authorities in Greater Manchester and with services still under significant financial pressure we will put the premium to good use for the benefit of the local community.”
Watford, which has a similarly low number of 38 second homes according to government data, has agreed to introduce the premium from April 2026.