Owning a second home in the UK has become noticeably more expensive over the past year, as councils across England, Wales, and Scotland have gained (and in many cases used) new powers to charge significantly higher council tax on properties that aren’t anyone’s main residence. Here’s what’s actually changed.
What the Premium Is
Since 1 April 2025, councils in England have had the power to charge a premium of up to 100% additional council tax on second homes in their area, effectively doubling the standard bill. For council tax purposes, a second home is defined as a property that’s substantially furnished but isn’t anyone’s sole or main residence. This includes traditional holiday homes, but it can also catch other situations, a landlord’s rental property sitting empty and furnished between tenancies, for example, can technically qualify as a second home from day one, unless a specific exception applies.
It’s Discretionary, Not Automatic
Crucially, this isn’t a national flat rate applied everywhere, it’s a power each individual council can choose whether to use, and at what percentage up to the 100% maximum. Councils have to formally determine their approach at least a year in advance, giving second homeowners advance notice, and many councils with a high concentration of second homes, particularly in coastal and rural tourist areas, have adopted the full 100% premium, effectively doubling council tax bills for affected properties. Others have chosen not to introduce it at all, or have set a lower rate. This means two very similar second homes in different parts of the country can face completely different council tax bills, purely based on local council policy.
Wales and Scotland Go Further
Wales already allows councils to charge premiums of up to 300%, quadrupling the standard bill in areas that adopt the maximum rate, reflecting particularly acute concerns in parts of Wales about second-home ownership affecting local housing availability. Scotland permits premiums of up to 100%, with the cap on that limit due to be removed from April 2026, potentially opening the door to steeper premiums there too in future.
There Are Mandatory Exceptions
The government has introduced a set of mandatory exception classes that override a council’s premium in specific circumstances, including situations such as a property being actively marketed for sale or rent, undergoing major repair work, or forming part of a job-related requirement. These exceptions apply regardless of individual council policy, so it’s worth checking whether a property qualifies before assuming the premium automatically applies.
Why This Matters for Landlords, Not Just Holiday Home Owners
While the premium is most commonly associated with holiday homes, it has real implications for landlords too. A furnished rental property that sits empty between tenancies can, in principle, be classed as a second home from the very first day it’s unoccupied, a narrower trigger than the empty-homes premium, which generally requires a property to sit empty for a much longer period before it applies. Landlords with properties between lets should check their specific council’s policy and the mandatory exceptions carefully, since this is an area that’s caught some owners by surprise.
Implementation Hasn’t Been Entirely Smooth
The rollout hasn’t been without complications. At least one council has faced formal findings that it failed to follow the correct legal process when applying its premium, highlighting that councils themselves are still working through the practicalities of this relatively new power. Given the pace of change and the amount of local variation, checking directly with the relevant billing authority remains the only reliable way to confirm exactly what applies to a specific property.
The Bottom Line
Anyone who owns, or is considering buying, a second home or holiday let should check the specific council tax policy for that property’s location before assuming a standard bill applies. With premiums of up to 100% already in force across much of England, and considerably higher caps in Wales, this has become one of the more significant ongoing costs of second-home ownership, and one that varies enormously depending on exactly where the property sits.