Matthew Ashton

Written by

Matthew Ashton

Reviewed by William Cooper

5 minute read

Updated 20th January 2025

If you own more than one property, you must pay council tax for second homes, even if the additional property is unoccupied. As you know, council tax is used by local authorities to pay for the services they provide, including maintaining roads, rubbish collection, street cleaning, and lighting, even if it’s charged for a second home rarely being used.  

While the amount of council tax you pay is determined by your local authority, new laws introduced in 2024 mean that they can now double how much council tax you pay on your second home. In this this article we want to help our high value home customers be in the know when it comes to council tax for second homes. As a result, we will examine these new council tax regulations and what they could mean for second homeowners.

Second home council tax explained

If you own a property besides your main home, this is generally considered a second home. The second home council tax is a charge on these types of properties. Even if you only use it occasionally, you must still pay council tax on your second home. 

Historically, buying a second home has become a popular investment, whether as a family holiday home or a source of rental income. If you’re interested in buying a second home, our comprehensive guide on buying a second home will tell you everything you need to know.

What is second home council tax payable?

Second homes council tax is payable to your local council once a year. You will usually receive your bill and payment instructions each April and can be paid as a lump sum or in regular instalments. As the owner, it’s your responsibility to pay it unless it’s a buy-to-let and you have a long-term tenant. Council tax deadlines and payment options vary depending on the area, so check with your local council.

The properties that are classified as a second home

Properties considered second homes for council tax purposes are not your main residence. This doesn’t include caravans or boats. While different local policies will impact what is considered a second home, in most cases they are:

  • Holiday homes
  • Weekend homes
  • Buy-to-lets
  • Holiday lets
  • Investment properties
  • Empty homes

Second home council tax changes in 2024

In 2024, changes were introduced to council tax on second homes under the Levelling-up and Regeneration Act 2023. These new rules allow councils to charge homeowners up to double council tax on second homes from April 2025. Councils must give the owner one year’s notice of the rate increase.

Check whether your council has agreed to increase council tax so that you can budget ahead.

What does the charge mean for me?

While it depends on your specific local authority, if you own a second home, council tax on the property may increase from April 2025. Check with your local council to find out whether you’ll be affected and, if so, how much the increase will be.

Each authority has the power to set its own council tax rates. If your council is increasing your second home council tax, you may have the option of paying it in instalments if required.

Second home council tax: your common questions answered

If you’re considering investing in a second home or already have an additional property, here we answer some common questions on second home council tax to help guide you through the process.

What if my second home is empty?

Some local councils will charge an empty home premium if your second home is empty and unfurnished for 12 months or more. However, some authorities offer exemptions. For example:

  • You’re in prison.
  • Your second home has been repossessed.
  • The property cannot be lived in by law.
  • The property is an annex to your existing property.
  • You are in hospital.
  • You have been taken into care.
  • The property has been purchased by compulsory order.
  • You’re in the armed forces and required to move into military accommodation for your work.

What if I am living in my second home as my main property?

If you start living in your second home full-time and it becomes your main residence, you must inform your local council office immediately. They need to know as it will affect your council tax liability and how much you’re required to pay. Once you’ve notified the council, they will update the status of your property and make sure that you’re charged the correct council tax rate.

Contact your local authority to find out the specific steps you need to take to inform them of your change in circumstances. Otherwise, you could overpay or face penalties for late or incorrect payments.

What if I let my second property to someone else?

If you let out your second home on a long-term basis, the tenant usually pays the council tax. However, if you use it as a holiday home, a short-term holiday let, or you are a landlord who rent out the rooms individually as a House Multiple Occupancy, you will be liable for paying the council tax. Some local councils offer exemptions or discounts, so it’s worth finding out if it’s possible to lower your council tax bill.

What if I want to let the property in the future?

If your circumstances change and you let out your second home, you must inform your local council office as soon as possible. Letting out the property can impact the amount of council tax you pay. If you don’t inform them, it could mean that you aren’t paying enough council tax and, as a result, fall into arrears.

Can I get a discount on second home council tax?

If you’re wondering how to get a discount on second home council tax, there’s good news. While you may not be able to avoid paying second home council tax entirely, some councils offer a council tax discount on second homes.

However, this largely depends on the specific circumstances and policies of your local council. They will want to know how often the property is occupied, whether it generates rental income and how the property is used (e.g., if it’s being used as a holiday home). You may also be eligible for a discount if you have to live elsewhere because of your work – for example, in the armed forces.

What happens if I don’t pay my second home council tax?

If you don’t pay your second home council tax, you will fall into arrears and may face interest charges and penalties. Speak to your local council tax office as soon as possible to discuss your situation. If you are struggling to keep up with your payments, they may be able to offer a payment plan. If you ignore the arrears or any summons documents you receive, the council may send out bailiffs to collect the outstanding council tax or take you to court.

Why it’s important that your second or empty property is insured

Second homes can be a great long-term investment. However, whether you use it as a holiday home, a weekend getaway, a holiday let or a rental, you will have to pay council tax on it. Even if it has been sitting empty for some time, you are still liable to pay.

While the amount you pay depends on your local council, you could see your rates go up as of April 2025 following the Levelling-up and Regeneration Act 2023. If you are finding it difficult to pay your second home council tax, think that you’re exempt or eligible for a discount, speak to your local council office immediately. If you fail to make your council tax payments, you could face penalties or even land up in court.

Regardless of the purpose of your second home, making sure that it’s properly insured is essential. With the right high value home insurance, your second home investment can be protected should something unexpected happen, such as a fire, flood or theft. It can offer peace of mind and financial protection. When choosing your policy, take into account the property’s value, its location and how often it’s occupied. These factors may impact the type and cost of the cover you need.

An experienced insurance broker such as Stanhope can advise you on the best policy for your circumstances. As a premium insurance provider, we offer tailored policies and a personalised service that you can’t get from large corporate insurance brokers. Speak to our friendly and expert team to find out more about how we can help you and get a quote.

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At short notice Stanhope pulled the rabbit out of the bag managing to provide insurance cover quickly on my new partly thatched home which was also very competitive. Thank you.

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Sources

https://www.gov.uk/council-tax/second-homes-and-empty-properties

https://www.localgov.co.uk/Will-increasing-council-tax-on-second-homes-help/60865

https://moneyweek.com/personal-finance/tax/council-tax-rules-for-second-homes

https://hoa.org.uk/advice/guides-for-homeowners/for-owners/second-home-council-tax/

https://www.citizensadvice.org.uk/housing/council-tax/paying-council-tax/

https://www.legislation.gov.uk/ukpga/2023/55

    Written by Matthew Ashton

    I started working in the insurance industry in 2004. Four years later, I left to focus on theological studies, working as a youth worker and then as a ministry director in Seattle, USA. When returning to the UK, I had an opportunity to work for the late Andrew Marchington. I joined his firm as a sales advisor when it had around ten staff members. Within three years, I was Head of Ops with a staff team of over 30 people. After a chance encounter in 2019 with Rachel Living and Will Cooper, I co-started Stanhope to build a high-value home, luxury watch, and jewellery broker synonymous with trust. I love being with Donna, my wife, and four kids when not working, cramming in the odd row, or run when I can. I am fortunate to love what I do and consider it a blessing to grow the Stanhope brand.

    Matthew Ashton

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