Proposed Tax Changes Could Mean Higher Costs for Second Homeowners

A council is considering doubling council tax on second and empty homes, citing their “negative impact” on housing availability.

Cabinet members of the Forest of Dean District Council voted unanimously to recommend that the full council approve the proposal in December. The plan, introduced by joint deputy leader and finance cabinet member Andy Moore, would affect 309 properties in the area.

If approved, the premiums would take effect in April 2025. Currently, the Forest of Dean charges premiums on properties left unoccupied and unfurnished for more than two years. The new proposal introduces a 100% council tax premium for second homes and reduces the waiting period for charging empty property premiums from two years to one.

In September 2023, the cabinet agreed to these changes in principle, pending legislation under the Levelling Up and Regeneration Bill, which received Royal Assent in October.

The proposal also includes a sliding scale for council tax on empty homes, with properties vacant for up to 10 years facing a 300% increase.

According to a report by Mandy Fathers, business manager for environmental, welfare, and revenues, second home ownership significantly affects local housing needs, and more must be done to discourage underutilization of properties. A letter was sent to all second homeowners in the district in March 2024, notifying them of the potential changes.

The full council is set to debate the report on December 12.

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