Second Home Council Tax Premiums: Why to Check Your Band Now

Owners of second homes and long-term empty properties in England and Wales now face significantly higher council tax bills due to new premium charges. With councils able to double or even quadruple annual payments, an incorrect council tax band is more costly than ever, making it crucial to verify its accuracy. [4, 7]

Why are second home council tax bills increasing?

Local authorities in England and Wales have new discretionary powers to increase the financial burden on properties that are not used as a primary residence. This is part of a strategy to encourage owners to sell or rent properties to local residents, increasing the housing supply and raising revenue for local services. [8, 9]

In England, councils can charge a premium of up to 100% on second homes from April 2025. [5] This means you could pay double the standard council tax. For long-term empty properties (unoccupied and unfurnished), a 100% premium can be applied after just one year, rising in stages to as much as 300% for properties empty for over ten years. [5, 7]

In Wales, the rules are even stricter and have been in place longer. Welsh local authorities have the power to charge a premium of up to 300% on both second homes and long-term empty properties from the moment they qualify. [3, 6] Many councils, such as those in the Vale of Glamorgan and Denbighshire, are already applying these higher charges. [2, 8]

How do premiums make a wrong council tax band more expensive?

A council tax band determines the base amount of your annual bill. The premium is then applied as a multiplier to this base amount. For example, a property in Band E might have a standard bill of £3,000.

• Standard Rate: £3,000
• With 100% Premium (England): £3,000 (standard) + £3,000 (premium) = £6,000 total bill
• With 300% Premium (Wales): £3,000 (standard) + £9,000 (premium) = £12,000 total bill

If this property was incorrectly in Band E when it should have been in Band D (with a standard bill of, say, £2,500), the premium amplifies the financial impact of the error. The overpayment is no longer just £500, but £1,000 with a 100% premium or £2,000 with a 300% premium. This dramatic increase makes checking your band a vital financial exercise for any second home or empty property owner.

What counts as a second home or long-term empty property?

The definitions used by councils are specific and determine whether a premium can be charged:

• Second Home: A dwelling that is substantially furnished but is not anyone's sole or main residence. [5] This includes holiday homes used periodically by the owner.
• Long-Term Empty Property: A dwelling that has been unoccupied and substantially unfurnished for a continuous period of at least one year. [5]

These definitions are important. A furnished property empty between tenancies, for example, is typically treated as a second home from day one, making it potentially liable for a premium immediately. [6] Some exceptions exist, such as for job-related accommodation or properties undergoing major repairs, but these are specific and require application to the council. [10, 11]

How do I check and challenge my council tax band?

Checking and challenging the council tax band for a second home follows the same process as for a main residence. The Valuation Office Agency (VOA) in England and Wales sets the band, which is based on the property's estimated value on a specific historical date (1 April 1991 for England, 1 April 2003 for Wales). [13, 16]

The first step is to check the band of your property and compare it to similar neighbouring homes on the VOA's website. [12, 13] If identical properties are in a lower band, you may have grounds for a challenge.

To formally challenge your band, you must submit a proposal to the VOA, providing evidence to support your case. This can include:

• The addresses of similar, lower-banded properties nearby.
• Evidence of the property's sale price if it was sold near the 1991 or 2003 valuation dates. [13]
• Details of any significant changes to the local area that have reduced the property's value.

You should continue to pay your council tax bill as issued while the VOA considers your challenge. [16] If the VOA agrees to lower your band, the council will issue a new bill and arrange a refund for any overpayments, which could be backdated to when you became the owner. Given the high cost of premiums, securing a correction and a refund is more valuable than ever.