Thousands of owners of holiday cottages and rural retreats across England are bracing for a severe financial blow as a new wave of council tax hikes is set to take effect. From April, annual bills are poised to double overnight for many, following decisions by dozens of cash-strapped local authorities.
The Second Wave of Surcharges
A 100% council tax premium will be introduced in numerous areas from April 2025, instantly doubling the annual tax burden for owners of second homes who do not let out their properties. This move represents a second major phase of increases, after 211 councils – roughly 71% of authorities in England – levied the surcharge as soon as legislation allowed last April.
An analysis for The Times reveals that 38 councils will implement the full 100% premium next year, with others planning to introduce similar charges from 2027. Among the councils preparing to enforce the charge are Wiltshire, targeting over 1,300 properties, the London borough of Hillingdon with nearly 750 second homes, and South Norfolk, which plans to apply it to most of its 600 eligible properties. In Stratford-upon-Avon, more than 800 homes could see their bills double.
Financial Pressure on Councils Drives Policy
The decision stems from a scramble by financially stretched local authorities to utilise new powers that allow them to impose extra charges on second homes, irrespective of how little owners use local services. Property experts warn this is just the beginning.
"We’re entering a second wave of charges as councils look for fresh ways to boost their budgets," said Aneisha Beveridge of Hamptons. "The big second-home destinations were quick to introduce the surcharge, but now others are set to follow."
The potential revenue is significant. For instance, Cherwell council, near Oxford, could raise £1.6 million, while Kensington & Chelsea might rake in £12 million if it adopted the charge. Councillors in Kensington & Chelsea have admitted they may be forced to act after a government funding review threatened to divert millions to poorer areas.
Exemptions and Campaigner Criticism
Not every second-home owner will be hit immediately. Some properties are automatically exempt, including homes tied to employment or those restricted by planning rules. Others can temporarily avoid the surcharge if the property is actively marketed for sale or rent. Hamptons analysis found that 17% of the 236,000 second homes in areas that have already adopted the surcharge were exempt.
Despite this, campaigners argue many households will still suffer. Elliot Keck of the TaxPayers’ Alliance condemned the move, stating: "For thousands of households across the country, the new year threatens a crippling tax raid on their properties. As well as yet another year of inflation-busting council tax rises, many will also face their bills being doubled as local authorities levy punitive charges... There is no justification for this, given that second-home owners will make much less use of council services."
Nevertheless, with 47 councils still having no plans for a surcharge but under mounting pressure due to widening funding gaps, the trend of increasing property taxes on second homes shows no sign of abating.
