UNLET and vacant second homes should command higher levels of council tax, a leading property group has claimed.
But the National Association of Property Buyers said there are other cases where there needs to be an exception made.
Spokesman Jonathan Rolande said: “We’d be 100 percent behind elevated council tax for second homes that are unlet and often left vacant. They contribute little to the local economy and frankly, if people want somewhere of their own to pop to for a holiday, they should pay for it. After All, the rest of us must stay in a hotel so there is little downside.
However, those that are let AirBnb style are different. Like them or loathe them, they bring visitors to the area. Visitors who use local shops, pubs, restaurants and tourist attractions. Run as a business, the owner will be paying tax on income after expenses.
“In these cases increased council tax could actually damage this market and much could be reclaimed anyway via the owner’s tax return. The net gain would be tiny and the threat to local tourism, competing as it is once again with sunnier, more exotic locations could be significant.”
About half a million properties in England are classified as ‘second homes’, and many families use them when they are working away from their main home, or for weekends or holidays. That’s only about 2 percent of our housing stock. Local authorities have been able to charge the full rate of council tax on second homes since 2013, but latest figures show that about 10,000 of them still get a council tax discount.
In Wales local authorities will be able to charge a council tax premium on second homes of up to 300 percent from April.
There has become more nuance to the second home owners debate since the staycation boom during the pandemic.
