The assault on second home owners appears to be taking its toll with thousands of valued people packing their bags and abandoning their second homes thanks to a premium tax. But according to The Telegraph government figures show there are a whopping 34,000 council-owned homes lying empty across England- plus a further 55,000 run by social housing associations.
Since April 1, councils across England are able to charge a council tax premium on second homes of up to 100% under new powers introduced in the 2023 Levelling Up and Regeneration Act. More than two-thirds of councils across England are believed to have taken up the new tax powers which could generate an extra £445 million in revenue, according to analysis by Sky News. The premium is charged on properties which are “occupied periodically” and “substantially furnished”.
It was hoped this measure would free up housing for locals, but instead, it has backfired massively, with thousands of homes lying empty as Rachel Reeves gobbles up the tax from second-home owners who have worked hard to own two properties.
As a result towns and villages across the country risk lying abandoned – this is a very real concern in Labour-led Gateshead where 821 sit vacant.
In an area that attracts tourism, second-home owners in their droves have packed up and left the town, which has a trendy, artisan edge.
Second-home owners have seen their council tax bills rocket from £1,919 last year to an eye-watering £4,019.
Sitting on the south bank of the River Tyne the town’s council has a waiting list of more than 12,000, introduced the second home surcharge in a bid to “further discourage the holding of empty properties”.
However, it owns 636 homes which lie vacant, and an additional 185 unoccupied homes are managed by housing associations.
This means the level of vacant social housing in the North East borough exceeds the number of second homes by 42%.
John O’Connell, chief executive of the TaxPayers’ Alliance, says these figures “expose the dishonesty of councils” in their war against second home owners.
He added: “Far from being an attempt to free up housing for locals, the second home premium is simply a way for local authorities to make a quick buck while causing great distress and financial difficulty to those being forced to pay.
“Councils need to focus on filling their own properties, not hammering those who have worked hard and achieved the dream of owning an extra property.”
