Izzy Lepone 01 September 2025

Councils forgo over £50m second homes revenue

Councils forgo over £50m second homes revenue  image
© Jirapong Manustrong / Shutterstock.com.

The sale of second homes has seen up to £55m less council tax revenue generated for local authorities.

While former housing secretary Michael Gove introduced a 100% council tax premium for second home owners in April, the change has not increased funds for local authorities as much as ministers initially thought.

A rising number of second home owners are said to have attempted to sell their properties since the introduction of the premium, with little uptake from buyers, according to The Times.

While 110,254 homes were subject to the charge in September 2024, estate agents Hamptons has revealed that £55m of revenue was missed out on after only 83,063 properties among the 28 local authority regions with the greatest number of second homes paid the premium in April.

A Local Government Association spokesperson said: ‘There is a desperate need for more affordable housing across the country and councils need all options possible to ensure a supply of homes for rent and sale that meets local needs.

‘Charging a council tax premium, for long-term empty and second homes, is one way of encouraging owners to bring these properties back into permanent use.’

SIGN UP
For your free daily news bulletin
Highways jobs

ESCA Development Assistant

Essex County Council
£25959.0000 - £27613.0000 per annum
ESCA Development AssistantFixed Term, Full Time£25,959 to £27,613 per annumLocation
Recuriter: Essex County Council

Tree Officer - North Herts Council

Essex County Council
£32653.0000 - £36773.0000 per annum
Essex County Council (ECC) are delighted to be advertising the Tree Officer role on before of North Herts Council. To apply for this position, please England, Hertfordshire, Letchworth Garden City
Recuriter: Essex County Council

Service Director - Education and Skills

Sandwell Metropolitan Borough Council
£98, 135 - £113,630
A pivotal role at the heart of our improvement journey. Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Waste Minimisation Support Advisor

Essex County Council
Up to £14.020 per hour
Waste Minimisation Support Advisor - Braintree District Council Braintree, Essex Full-Time, Temporary 37 Hours per Week £14.02 PAYE / £17.95 Umbrella England, Essex, Braintree
Recuriter: Essex County Council

Service Director - Commissioning and Partnerships

Sandwell Metropolitan Borough Council
£98, 135 - £113,630
A pivotal role at the centre of our ambitions for children, young people and families across Sandwell. Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council
Linkedin Banner