Owners of thousands of second homes across England are bracing for a severe financial blow as dozens of local authorities prepare to impose a 100% council tax surcharge, effectively doubling their annual bills overnight.
The Second Wave of Council Tax Hikes
This move marks a second wave of hefty tax increases, with 38 councils set to implement the full 100% premium from April 2026. This follows the initial rollout last April, when 211 councils – approximately 71% of authorities in England – levied the surcharge as soon as legislation permitted.
An analysis for The Times reveals that as many as 12,300 second homes are poised to be hit by the new charge. The decision stems from a scramble by financially stretched councils to utilise new powers allowing them to impose additional charges on properties not used as a primary residence, regardless of how little owners use local services.
Councils Cashing In on Second Homes
Property experts warn this is just the beginning. Aneisha Beveridge of Hamptons estate agents stated: "We’re entering a second wave of charges as councils look for fresh ways to boost their budgets. The big second-home destinations were quick to introduce the surcharge, but now others are set to follow."
Among the councils preparing to enforce the charge are:
- Wiltshire: Over 1,300 properties affected.
- Hillingdon (London borough): Nearly 750 second homes caught by the policy.
- South Norfolk: Plans to apply the surcharge to most of its 600 properties.
- Stratford-upon-Avon: More than 800 homes could see bills double from April.
The potential revenue for councils is significant. Cherwell, near Oxford, could raise £1.6 million, while Kensington & Chelsea in London could rake in £12 million if it introduced the charge. Councillors in Kensington & Chelsea have admitted they may be forced to act after a Government funding review threatened to divert millions to poorer areas.
Exemptions and Mounting Pressure
Not every second-home owner will be hit immediately. Some properties are automatically exempt, including:
- Homes tied to employment.
- Properties restricted by planning rules.
Owners can also temporarily dodge the surcharge if the property is actively marketed for sale or rent. Hamptons analysis found that 17% of the 236,000 second homes in areas that have already adopted the surcharge were exempt.
Despite this, campaigners argue many households will still suffer. Elliot Keck of the TaxPayers’ Alliance said: "For thousands of households across the country, the new year threatens a crippling tax raid on their properties. As well as yet another year of inflation-busting council tax rises, many will also face their bills being doubled."
He added: "There is no justification for this, given that second-home owners will make much less use of council services."
While 47 councils still have no plans to introduce any surcharge, they are under mounting pressure to do so as funding gaps widen, signalling that this council tax bombshell may spread even further in the coming years.
