A new 100% council tax premium on second homes in England has been described as a “naked cash grab” by campaigners opposed to the new levy.
Data from Sky News shows around 75% of councils in England will introduce the discretionary charge from April – essentially doubling the council tax on properties classed as second homes.
England follows in the footsteps of Wales, which already charges a premium.
Government data shows there are around 557,000 second homes in England. Hotspots such as Cornwall, Torbay, Norfolk and Somerset are introducing the tax – but there are many towns and inner-city areas such as Rochdale and Bristol, and London boroughs including Wandsworth, Camden and Hackney, also bringing it in.
Sky News analysis shows the new charge, being introduced by more than 200 councils, could generate an extra £445m in revenue.
Elliot Keck from the TaxPayers’ Alliance says the premium is unfair.
“It’s a very naked cash grab,” he said. “There’s a simple principle of council tax that comes from when it was first introduced, which is that it’s supposed to be linked to some extent on how much you use services.”
He added: “If you have a second home in an area that you use for only a couple of months a year, you’re actually using services much, much less than if that was someone’s primary property. So, if anything, really you should actually be getting a discount on your council tax, not a premium.”
If a second home is put up for sale, provided by an employer, or undergoing major refurbishment, the owners may be exempt from paying the premium.
Adam Hug, housing spokesperson for the Local Government Association, says the aim is to encourage councils to address the housing crisis in their areas.
“No one is overstating the power of this – it is a nudge in the right direction,” he said. “It is one of a suite of tools that can be used. In and of itself it will not solve the housing crisis, but it is a step in the right direction if councils wish to use that to better manage their supply.”
Cath Hayes, from Redruth, co-founded First Not Second Homes – a campaign group against second homes in the county.
“In my opinion, doubling the council tax isn’t sufficient,” she said. “I think it needs to be more than double – because it’s not a deterrent, it is a tool among other things. If you can afford a house in Cornwall, you’re doing well. If you can afford two houses – then it’s not a deterrent.”
Read the orginal article: https://propertyindustryeye.com/new-tax-on-second-homes-deemed-a-naked-cash-grab/
