Derbyshire district launches consultation on doubling Council Tax for second homes

The Government is introducing a new power for local authorities to increase Council Tax on second homes by 100 per cent starting April 1, 2024. Councils can decide the level which is appropriate for their individual local circumstances and can set the premium at any level up to the maximum.

A second home is defined as a dwelling that is not a person’s sole or main home and is substantially furnished. They are often referred to as holiday homes, and are particularly common in areas such as the Peak District which double as destinations for people taking a break from city life.

A spokesperson for the authority said: “One in 20 homes in the Derbyshire Dales are not used for the purpose of permanent accommodation, and instead are used as second homes, holiday lets or are empty.

“It is thought that second homes can add to house price inflation and put local people at a disadvantage when existing homes come on the market.

“The Council Tax Premium for second homeowners may encourage them to sell their properties or may well put off future buyers wanting to purchase existing traditional homes as second homes.”

The council is consulting residents and stakeholders on the proposal to introduce the Council Tax Premium on second homes and would like to understand the views of both the property owners and their permanent neighbours.

Officers have created a short survey to gauge people’s thoughts and feelings about the impact of second homes on the community and the wider housing sector.

The new powers are part of the Regeneration and Levelling Up Bill which is due to receive royal assent on April 1, 2023.

If the Council Tax Premium was to come into effect, the district would receive additional Council Tax income and so councillors’ and officers are keen to hear residents’ views on the best possible uses for the extra money.

The consultation runs until Friday, March 10. For more details and the full questionnaire, go to www.derbyshiredales.gov.uk/secondhomessurvey.

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