The National Association of Property Buyers (NAPB) has suggested that unlet and vacant second homes should be subject to higher levels of council tax.
However, the group has acknowledged that there are some cases where an exception should be made.
According to NAPB spokesperson Jonathan Rolande, unlet and vacant second homes “contribute little to the local economy”, and should be subject to elevated council tax rates.
On the other hand, homes let out on AirBnb are different, said Rolande, as they bring visitors to the area who use local shops, pubs, restaurants and tourist attractions which in turn helps the local economy.
The NAPB claims that the owners of these properties, who run them as a business, will be paying tax on income after expenses.
In these cases, increased council tax could actually damage this market, and the net gain would be small.
The NAPB argues that in these situations, local authorities could reclaim much of the revenue through the owner’s tax return, and that the threat to local tourism could be significant if council tax rates were increased.
Currently, around 500,000 properties in England are classified as second homes, comprising about 2% of the country’s housing stock.
Since 2013, local authorities have been able to charge the full rate of council tax on second homes, but about 10,000 of them still receive a council tax discount.
From April, Welsh local authorities will be able to charge a council tax premium of up to 300% on second homes.
The NAPB’s comments come amid continued debate around second homes, particularly following the staycation boom during the pandemic. While many families use second homes for weekends or holidays, there are concerns that unoccupied properties are contributing to a shortage of affordable housing in some areas.
