Tens of thousands of second home owners will face paying double council tax starting next year under new laws introduced by Michael Gove.
According to an analysis directed by The Telegraph, more than 150 localities will impose an increasing tax next April, a decision that is likely to impact as many as 130,000 second homeowners.
Around 155,000 homes in England were registered as second homes in 2021, meaning that more than 80% of those are set to face doubling council tax rates.
The charge will also raise a minimum of £215 million for councils and make owners pay thousands of extra pounds of tax in a year.
What Areas Are Going to Be Affected by the Doubling Tax?
The Government has not yet made available detailed guidelines about which properties are eligible for a double council tax premium.
Despite studies commissioned by the Welsh government indicating that there is "limited evidence of the effectiveness" of a nearly identical strategy adopted in Waled five years ago, it is scheduled to be implemented starting in April of next year.
Cornwall is the most affected district, with plans to collect an estimated £24 million by charging double council tax on its 12,679 second properties.
The current annual cost of Band D dwellings in the county is £2,068.04, which means that a second property in that category would pay at least £4,136.08.
In the meantime, the premium might be applied to 6,900 homes in Herefordshire, generating £12 million, and 5,200 properties in Westmorland and Furness might generate £10 million.
3,947 South Hams properties and 3,654 Northumberland homes have the potential to raise as much as £7.9 million and £7.1 million, respectively.
In addition, to borough councils that oversee tourist-friendly areas, financially challenged councils in the commuter belt and metropolitan areas have pushed through the second house premium.
In Kent's Tunbridge Wells, second residences will pay double taxes, despite the fact that this will only generate £64,000 from 34 properties. Despite the fact that only 21 second homes will be subject to the premium, Gravesham Council has nonetheless collected it.
UK Councils Introduce Second Home Premium to Address Housing Crisis
Greg Smith, the Tory MP for Buckingham, said: “I can understand why councils want to target second home owners to raise revenue, but there is a stark reality here that most second home owners are people stretching themselves to have a modest investment, saving for their retirement or securing their future.
“It’s not right to lump in everyone as if they are all big corporate property giants. Conservatives are about encouraging people to do the right thing, and for many years, property has been the best route to save, to invest and plan for the future.”
Inner-city councils also approve of the idea of bringing in a second home premium, with the aim of pushing owners to sell or rent their properties. The move could also help raise money to build new affordable houses.
Hackney Council in London has stated that it will bring the tax in, although it does not yet know how many houses will be impacted.
A spokesman declared that the move “aims to encourage property owners to use homes for local families who need them most, rather than keep them empty.”
The levy is also set to “provide extra income to contribute towards vital local services, with an ongoing lack of government investment forcing the council to find £57 million in savings over the next three years,” the spokesman added.
In addition to the 153 councils, a further 15 are planning to adopt the levy and implement it by 2026.
One of the authorities that may still set up the tax is the North Norfolk district council, which could later impose the tax on more than 4,800 second homes.