Skip to main content

Decision details

Council Tax Premiums - Second Homes

Decision Maker: Executive

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: Yes


Councillor Dan Levy, Executive Member for Finance, introduced and gave an overview of the report which considered proposals to implement a Council Tax Premium on second homes.

In debate, it was highlighted that there was a significant community and societal value to the proposition although the idea had not yet been formally approved by central government. A premium on second homes would potentially over compensate for paid services such as lower waste collections and community ‘wear and tear’ for properties that were not primary residencies, The anticipated council tax premium on second homes would pave the way for societal and financial protection for some of the most rural communities within the district.

In debate, attention was drawn to a lack of funding received by the Council from “Airbnb” properties, that the full tax receipt will increase as part of a second homes premium, and that short term lets should pay Council Tax, but were not mandated to. This proposition and the Community Infrastructure Levy (CIL) had been deemed to have been brought forward before legislation had been introduced. Other authorities, such as one in Wales had licensing schemes in place already to limit the number of holiday lets and short term let properties. It was confirmed that a reason for early introduction was to allow Officers sufficient time to put preparatory work in place ahead of the legislation being passed.Home owners had 12 months’ notice of the introduction. The Executive stated that this work allowed the Council to be ‘on the front foot’ ahead of the anticipated introduction of legislation.

Councillor Levy proposed that Executive agree to the recommendations as listed on the report. This was seconded by Councillor Geoff Saul, was put to a vote and was unanimously agreed by the Executive.

Executive Resolved to:

  1. Note the report and agree in principle to the implementation of charging 100% premium for second homes, and reducing term for applying charge for empty properties form 2 years to one year, subject to the emerging legislation being passed;
  2. Instruct officers to bring a further report back to the Executive when the legislation has been passed, providing detail on the legislative implications and proposed implementation.

Report author: Business Manager Environmental, Welfare and Revenues - Mandy Fathers

Publication date: 10/03/2023

Date of decision: 08/03/2023

Decided at meeting: 08/03/2023 - Executive

Effective from: 18/03/2023

Accompanying Documents: