Second home owners could face higher taxes

A council is considering doubling council tax for second and empty homes, which it says have a "negative impact" on the supply of homes.

Cabinet members at Forest of Dean District Council voted unanimously to recommend the full council approves the premiums in December.

Joint deputy leader and cabinet member for finance Andy Moore introduced the report which, he said, would affect 309 properties in the Forest of Dean.

The premiums, already agreed in principle or in force in other parts of the county, would come into effect from April 2025.

Currently in the Forest of Dean, premiums are being charged on properties left unoccupied and unfurnished for periods of more than two years.

The latest council report suggests the introduction of a 100 per cent council tax premium for owners of second homes, in addition to reducing the period the council will wait before a premium comes into force from two years to one, from April 2025.

In September 2023, cabinet members agreed the changes in principle, subject to legislation being passed under the Levelling Up and Regeneration Bill, which was given Royal Assent the following month.

Under the proposals, council tax for empty homes will be based on a "sliding scale", with those which have been empty for up to 10 years facing a 300 per cent council tax increase.

The report, authored by Mandy Fathers, business manager for environmental, welfare, and revenues, said second home ownership is "significant" in the area.

"The act recognises the impact that high levels of second home ownership can have, and that more needs to be done to disincentivise people from simply doing nothing with their property, or not using it to its full potential," it added.

All second home owners in the Forest of Dean district were sent a letter in March 2024, advising the council was considering implementing the premium from April 2025.

Full council will debate the report on 12 December.

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