Council tax to double for empty and second homes in London from April

BySSZee Media

Jan 21, 2025 #Council tax, #Empty Homes, #housing crisis, #News, #News Of The World, #UK housing policy, #UK tax, #Westminster

Thousands of homeowners in London are gearing up for a steep hike in their council tax bills, with some facing a 100% increase from April. The move, part of new regulations aimed at generating additional revenue and alleviating the housing crisis, will particularly impact owners of long-term empty properties and second homes.

Wandsworth Council has announced that from 1 April, homeowners with properties that have been unoccupied and unfurnished for more than a year—down from the previous two-year threshold—will see their council tax bills double. Additionally, second homes will also be subject to a 100% increase in council tax, marking a significant shift in the borough’s approach to managing housing availability and revenue.

Simon Hogg, leader of Wandsworth Council, emphasized the urgency of the situation, stating, “The number of second homes in Wandsworth has doubled since last year and too many local families can’t find a place to call home.” With a projected 5% increase in council tax, a standard Band D second home in Wandsworth is expected to pay approximately £1,500 annually, including the City Hall “precept” used to fund essential services like the Metropolitan Police and London Fire Brigade.

Westminster Council is implementing similar measures from 1 April, aligning with Wandsworth’s strategy. However, exemptions will apply to residents who are required to live in a second home due to job-related terms, such as caretakers or members of the armed services. In contrast, those using a central London property for convenience due to their work location will not be exempt and will face the additional charges.

This move mirrors Hackney’s approach, which last April approved plans to double council tax premiums for owners of long-term empty and second homes. Westminster Council has already been applying a premium of 200% on homes left vacant for over five years, and an even steeper 300% for those empty for a decade.

The policy shift is part of a broader governmental effort, initiated by the previous Tory administration, to empower local councils to levy higher taxes on long-term empty and second homes. The additional funds are intended to be reinvested into public services, addressing both financial and housing shortages.

Research from the charity Crisis highlighted the growing issue, revealing a significant increase in long-term empty properties across every English region since 2017. London alone saw a 73% rise, with 34,327 properties classified as “long-term vacant” last year, collectively valued at over £20 billion.

As Wandsworth and Westminster, historically known for the lowest council tax rates in England, adopt these new measures, they aim to balance their budgets while tackling the pressing housing crisis in the capital.