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.’
