Rise in second homes despite imminent double council tax

Plans to charge double council tax on second homes in Herefordshire from this April have not slowed the growth of such properties in the county, new figures show.

Following enabling government legislation, in late 2022 Herefordshire Council’s Cabinet backed the doubling of premiums on second homes – an option already used by some Welsh authorities.

The proposal said second home ownership in Herefordshire “is significant, and has a negative impact on the supply of homes available to meet local housing need”.

Then in February 2024, councillors unanimously backed bringing this in from April 2025.

But according to new figures from the council, this has not deterred second home owners in the county, nor has it freed up properties for Herefordshire’s strained property market.

When the initial decision was made, the tally of second homes in the county stood at around 700 – a figure which remained broadly steady for the next year (see graph).

Surprisingly though, following confirmation a year ago of the date to bring in the double charge, the figure then rose markedly, peaking at 965 in October last year – though by December it had slipped back to 910.

Herefordshire Council does not record the distribution of second homes by ward in the county.

It forecasts raising an extra £3.1 million from second homes in the coming financial year, as well as from properties which have been empty for over a year.

It expects to raise £146.5 million from the tax overall, assuming its planned maximum 5 per cent rise on bills is voted through.

The council said it has carried out checks on the occupancy and ownership of properties ahead of the rise, “to provide assurance in respect of the value of this budgeted income”.

“A range of compliance measures are in place and will remain under review during 2025/26 to ensure that council tax premiums are charged on all relevant dwellings,” it said.

There is already a double premium on properties in the county which have been empty for between two and five years, which rises to 200 per cent (i.e. triple) for those empty up to ten years, then to 300 per cent.