Double Council Tax in England sees owners seeking loopholes

Councils have been introducing extra tax charges for second and additional homes. Property experts are seeing a surge in holiday let owners switching to business rates to avoid the double tax rates introduced by around 200 councils this year.

As of April this year, councils can charge double tax on homes not used as a main home, in a bid to free up more homes for people to live in.

A second home owner in England paying the typical Band D council tax of £2,171 has seen that rise to £4,342.

Should England follow Wales where second homeowners face paying up to three times the normal rate of council tax for a second property? pic.twitter.com/WvJykVWY1T

— Dave Sumner Smith (@davesumnersmith) January 8, 2024

Holiday home hotspots such as Cornwall, Norfolk and Somerset are among those introducing the tax,  and the surcharge does not apply to buy-to-let landlords with long-term contracts.

However, homes that are rented out as holiday lets are included - although they can be classified as small businesses, meaning they can be charged business rates, rather than council tax.

Has the double Council Tax made holiday homes harder to sell?

Property experts are reporting that there has been an increase in homes for sale in some of the holiday hot spot areas that introduced double council tax for second homes, particularly in coastal towns.

Dorset’s double council tax is achieving its objective of making Weymouth’s richest sell up and leave. Unfortunately, as a tourist economy, they are the people who pay local salaries. Resulting poverty won’t help locals buy newly vacant homes. Who could have foreseen it? 🥴 pic.twitter.com/wHSlEQG7gK

— Nemo Salus (@NemoSalus) May 4, 2025

The Zoopla report into the fastest moving UK markets this spring highlighted properties in East Lindsay in the East Midlands, an area known for its stunning coastline that includes seaside towns like Skegness and Mablethorpe, taking longer to sell.

Similarly homes in the Welsh county Gwynedd, another second home hotspot that has increased council tax by 150 per cent, also taking longer than average.

Richard Donnell, Executive Director at Zoopla, says: “Metrics like time to sell and average sale price are crucial in helping would-be sellers understand the value of their home and the asking price they could secure in 2025. Buyers have a lot more choice of homes for sale than a year ago. Aiming too high on the asking price is likely to impact saleability and how long you may have to wait to agree a sale."

How dare you have a home empty because some is dead. Let's double your council tax.

Hopefully this won't be for much longer. Sale should happen soon but it's scandalous. pic.twitter.com/TUi9rOuDUV

— Martyn 🏴󠁧󠁢󠁷󠁬󠁳󠁿 (@KobayashiMaru86) March 18, 2025

What are the rules on additional Council Tax on second homes?

In England, if your council charges additional Council Tax on second homes in your local area, you may not have to pay the premium if:

• the second home is an annex which forms part of the same property, and is being used as part of the main residence
• your main or second home is provided by your employer and you need to live there for your job
• the second home has planning restrictions or other conditions about what it’s used for and who can live there, which means you cannot use it as a permanent residence

You may not have to pay the premium for up to 12 months if: 

• you recently received a grant of probate (or letters of administration) for the second home
• the second home is being marketed for sale or to rent

More Council Tax news...

• How to cut your Council Tax and get a rebate
• Urgent tax warning - how to spot a scam
• Huge Council Tax rise predicted - area by area guide

Second home council tax rules in Wales

In April 2023, the maximum level at which local authorities in Wales could set council tax premiums on second homes and long-term empty properties increased to 300%. This was an increase from the previous maximum level of 100%.

Second home council tax changes in Scotland

Many councils in Scotland also charge up to double the full rate of council tax on second homes.

The change brought the second home council tax rules in Scotland into line with long-term empty homes. 

Councils have been able to increase the tax from April 2024 and 29 of Scotland’s 32 local authorities confirmed that second homeowners will have to pay the higher charge in their areas.