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Queen's Speech: double council tax on second homes (predicted) - get in!


Frank Hovis

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Frank Hovis

Oh yes, finally.  And this could just be a step to the quadrupling of council tax on second homes as Wales is doing.

Cornwall Coucnil formally asked for this power in early 2021 and were turned down so there is no question that they will be applying it :)

 

 

The Government will be giving local authorities like Cornwall Council the power to double council tax on second homes in plans due to be announced in next week’s Queen’s Speech. The new council tax rules for second and empty homes will be introduced as part of the UK Government’s commitment to invest in local communities and drive levelling up across the country.

In Cornwall alone, some areas also have up to 40 per cent of properties being used as second homes. There is also currently more than £2,000,000,000 worth of empty homes in Cornwall, according to new estimates by estate agents Barrows and Forrester, which found that there are 7,083 empty dwellings in the county.

Under the new rules, English local authorities will gain ‘discretionary powers’ to levy a premium of up to 100 per cent on council tax bills for second homes that are furnished but not occupied as a sole or main residence. As well as supporting and improving services, this extra funding could be used to help ensure council tax is kept low for local residents.

Other homes simply left empty could also see the standard council tax rate doubled after 12 months – as opposed to two years at present. It is thought that the move will discourage owners from leaving properties vacant for a long time, while injecting money back into local areas.

In addition to having the power to apply greater premiums at a level of their choice, Local Authorities will have flexibility on how to spend the funds raised and can decide to prioritise keeping council tax bills low for local households. This will help with plans to deliver affordable housing, social care and children’s services.

https://www.cornwalllive.com/news/cornwall-news/second-home-owners-face-council-7053583#source=breaking-news

 

I know that there remains the problem of holiday lets but if this comes in it will be a huge first step.

@Wight Flight

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Not enough.

The extra charge may be £200 a month. I can think of someone rich enough to have a second home in Cornwall and have it empty and that kind of cost is not really off-putting. For those letting, any holiday let could just pass the £7/night equivalent onto renters.

One thing that few mention is that the Council tax system is horribly out of date and needs reform.

There seems to be no real reason why properties have to be assessed on their 1991 values - and these values have not changed despite the underlying house price going up maybe 10-fold or more since then.

So in theory a £15m property could pay the same as a £1m property. But there could a vast difference between these. Whereas at the bottom end the bands are clustered together.

Another prop which has benefited the rich.

The best way IMO would be to simply tax based on a percent of market value. Something like 0.5% would see the average person pay the same, the poorer areas pay much less, and richer people pay more.

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Frank Hovis
12 minutes ago, Boon said:

The best way IMO would be to simply tax based on a percent of market value. Something like 0.5% would see the average person pay the same, the poorer areas pay much less, and richer people pay more.

I have said exactly that.

And the last time I calculated it 0.5% times housing stock value = council tax take.

It is however a step along the way.  I remember when second homes were gven a council tax discount.

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One percent
1 hour ago, Frank Hovis said:

Oh yes, finally.  And this could just be a step to the quadrupling of council tax on second homes as Wales is doing.

Cornwall Coucnil formally asked for this power in early 2021 and were turned down so there is no question that they will be applying it :)

 

 

The Government will be giving local authorities like Cornwall Council the power to double council tax on second homes in plans due to be announced in next week’s Queen’s Speech. The new council tax rules for second and empty homes will be introduced as part of the UK Government’s commitment to invest in local communities and drive levelling up across the country.

In Cornwall alone, some areas also have up to 40 per cent of properties being used as second homes. There is also currently more than £2,000,000,000 worth of empty homes in Cornwall, according to new estimates by estate agents Barrows and Forrester, which found that there are 7,083 empty dwellings in the county.

Under the new rules, English local authorities will gain ‘discretionary powers’ to levy a premium of up to 100 per cent on council tax bills for second homes that are furnished but not occupied as a sole or main residence. As well as supporting and improving services, this extra funding could be used to help ensure council tax is kept low for local residents.

Other homes simply left empty could also see the standard council tax rate doubled after 12 months – as opposed to two years at present. It is thought that the move will discourage owners from leaving properties vacant for a long time, while injecting money back into local areas.

In addition to having the power to apply greater premiums at a level of their choice, Local Authorities will have flexibility on how to spend the funds raised and can decide to prioritise keeping council tax bills low for local households. This will help with plans to deliver affordable housing, social care and children’s services.

https://www.cornwalllive.com/news/cornwall-news/second-home-owners-face-council-7053583#source=breaking-news

 

I know that there remains the problem of holiday lets but if this comes in it will be a huge first step.

@Wight Flight

My read of it was that it would only be levied on property left empty. Does that mean if it’s used once in a blue moon it won’t be?  As ever, the devil is in the detail 

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Ash4781b

I might have to eat my hat if I see changes to Council tax. It cannot be reformed because it brings back memories of poll tax riots. They dare not tinker with it.

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Wight Flight
13 minutes ago, Ash4781b said:

I might have to eat my hat if I see changes to Council tax. It cannot be reformed because it brings back memories of poll tax riots. They dare not tinker with it.

The problem with the poll tax was it meant young adults would end up paying, and they were the ones that rioted.

I can't see your average booked looting Nike  stores.

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Well, I think the problem with the poll tax thing is that it made the lower classes worse off and that is the driver behind social unrest. You won't get rich people rioting.

TBH I think it could be implemented pretty easily. If you consider an average Londoner, a £500k property = £2,500 tax. Which is not that far off some boroughs take, unless it is an ultra-cheap one like Wandsworth.

Most of the country would be for it, and even these average Londoners would be for it when they realise that anyone with a multi-million quid home is in line for much bigger charges.

The only potential losers may be those living in expensive property who are poor. But hey, the current system would have given them hundreds of thousands of pounds worth of capital gains that are untaxed, and they can move somewhere else.

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Wight Flight
Posted (edited)
2 hours ago, Boon said:

The only potential losers may be those living in expensive property who are poor. But hey, the current system would have given them hundreds of thousands of pounds worth of capital gains that are untaxed, and they can move somewhere else.

Just let them roll it up as a debt repayable from their estate.I

At the same interest rate as student loans.

 

Edited by Wight Flight
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Joncrete Cungle
Posted (edited)
4 hours ago, Frank Hovis said:

 

 

This extra funding could be used to help ensure council tax is kept low for local residents.

 

Keeping council tax bills low for local households.

 

Pull the other one! Anyone who believes this extra money will be used to keep residents council tax bills 'low' can buy some magic beans from me.

Every extra penny gained will be wasted on pension promises and God knows what else.

Edited by Joncrete Cungle
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spygirl

Rumoured to be scrapping if s21/no fault eviction.

If true that basically makes btl unlendable as the bank has an effective takes a 2nd charge on its mortgage.

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One percent
9 minutes ago, spygirl said:

Rumoured to be scrapping if s21/no fault eviction.

If true that basically makes btl unlendable as the bank has an effective takes a 2nd charge on its mortgage.

It’ll shove more into holiday lets.  The tax changes re btl has already pushed a lot in that direction. 

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King Penda
4 hours ago, Joncrete Cungle said:

Pull the other one! Anyone who believes this extra money will be used to keep residents council tax bills 'low' can buy some magic beans from me.

Every extra penny gained will be wasted on pension promises and God knows what else.

The councils don’t give a fuck if the homes are empty if truth be told they don’t use any services .but they will gladly take the extra cash and pretend they are outraged

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spygirl
5 minutes ago, King Penda said:

The councils don’t give a fuck if the homes are empty if truth be told they don’t use any services .but they will gladly take the extra cash and pretend they are outraged

Ah thats where your wrong.

Ctax is 2k/house but public sector spend for full time residents is 10k/head.

Once you get loads of 2nd homes n holiday lets in a town than cost of those public services skyrockets.

 

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King Penda
19 minutes ago, spygirl said:

Ah thats where your wrong.

Ctax is 2k/house but public sector spend for full time residents is 10k/head.

Once you get loads of 2nd homes n holiday lets in a town than cost of those public services skyrockets.

 

That’s lost me I better get my dunces hat and sit in the corner 

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spygirl
Just now, King Penda said:

That’s lost me I better get my dunces hat and sit in the corner 

For each full time occupied house tge LA gets 2k/y ciunciltax, then large lumps of the 10k/head public spend - NHS, schooling, public services etc.

C tax only raises 1/4 of LA spend. Rest comes from central Gov, depending on number if FT residents.

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King Penda
8 minutes ago, spygirl said:

For each full time occupied house tge LA gets 2k/y ciunciltax, then large lumps of the 10k/head public spend - NHS, schooling, public services etc.

C tax only raises 1/4 of LA spend. Rest comes from central Gov, depending on number if FT residents.

With you 

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Chewing Grass
9 hours ago, Frank Hovis said:

£2,000,000,000 worth of empty homes in Cornwall

That is so funny, technically they are worth nothing as Cornwall is primarily a tourist destination with no industry, little mining and a teeny bit of fishing.

£2Bn xD

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HousePriceMania
39 minutes ago, Chewing Grass said:

That is so funny, technically they are worth nothing as Cornwall is primarily a tourist destination with no industry, little mining and a teeny bit of fishing.

£2Bn xD

That's just 5 houses 

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spunko
21 hours ago, Boon said:

Well, I think the problem with the poll tax thing is that it made the lower classes worse off and that is the driver behind social unrest. You won't get rich people rioting.

TBH I think it could be implemented pretty easily. If you consider an average Londoner, a £500k property = £2,500 tax. Which is not that far off some boroughs take, unless it is an ultra-cheap one like Wandsworth.

Most of the country would be for it, and even these average Londoners would be for it when they realise that anyone with a multi-million quid home is in line for much bigger charges.

The only potential losers may be those living in expensive property who are poor. But hey, the current system would have given them hundreds of thousands of pounds worth of capital gains that are untaxed, and they can move somewhere else.

If the Poll Tax were to be introduced today it would not be in the form of a fair "flat tax". It would be on a sliding scale meaning people with more expensive homes would have to pay more in both amount and percentage, similar to income tax.

That is the way this country is going, the politics of envy. This person has more than me, they can pay a higher rate.

There is increasingly little reward for being financially successful.

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Bus Stop Boxer
On 08/05/2022 at 11:41, Frank Hovis said:

Oh yes, finally.  And this could just be a step to the quadrupling of council tax on second homes as Wales is doing.

Cornwall Coucnil formally asked for this power in early 2021 and were turned down so there is no question that they will be applying it :)

 

 

The Government will be giving local authorities like Cornwall Council the power to double council tax on second homes in plans due to be announced in next week’s Queen’s Speech. The new council tax rules for second and empty homes will be introduced as part of the UK Government’s commitment to invest in local communities and drive levelling up across the country.

In Cornwall alone, some areas also have up to 40 per cent of properties being used as second homes. There is also currently more than £2,000,000,000 worth of empty homes in Cornwall, according to new estimates by estate agents Barrows and Forrester, which found that there are 7,083 empty dwellings in the county.

Under the new rules, English local authorities will gain ‘discretionary powers’ to levy a premium of up to 100 per cent on council tax bills for second homes that are furnished but not occupied as a sole or main residence. As well as supporting and improving services, this extra funding could be used to help ensure council tax is kept low for local residents.

Other homes simply left empty could also see the standard council tax rate doubled after 12 months – as opposed to two years at present. It is thought that the move will discourage owners from leaving properties vacant for a long time, while injecting money back into local areas.

In addition to having the power to apply greater premiums at a level of their choice, Local Authorities will have flexibility on how to spend the funds raised and can decide to prioritise keeping council tax bills low for local households. This will help with plans to deliver affordable housing, social care and children’s services.

https://www.cornwalllive.com/news/cornwall-news/second-home-owners-face-council-7053583#source=breaking-news

 

I know that there remains the problem of holiday lets but if this comes in it will be a huge first step.

@Wight Flight

Straight in the council pension fund?

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Frank Hovis
13 minutes ago, Bus Stop Boxer said:

Straight in the council pension fund?

I'm far less worried about where it goes than who it costs!

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sarahbell

I'd read earlier that EPC on rental will have to be C or above in the next couple of years.

Are there exemptions for certain types of houses where no improvement can be made?

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Chewing Grass
1 minute ago, sarahbell said:

I'd read earlier that EPC on rental will have to be C or above in the next couple of years.

Are there exemptions for certain types of houses where no improvement can be made?

That will be readily fiddleable  for cash, will be very easy and lucrative for the assessors.

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Just now, Frank Hovis said:

I'm far less worried about where it goes than who it costs!

No-one who's part of a couple [one primary home each?].

 

Just now, sarahbell said:

I'd read earlier that EPC on rental will have to be C or above in the next couple of years.

Are there exemptions for certain types of houses where no improvement can be made?

Doesn't apply if you make it a holiday let instead.

But yes if the cost is too high and you've spent already, a few years exemption is available now.

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