London: The UK is planning to allow local councils to double property taxes for second-home owners to help finance the construction of more affordable housing in the country, The Telegraph newspaper reported.
The authorization for the tax hike is part of the government’s bill to help regenerate local economies, which is in its final stages of being passed through Parliament. The newspaper said the law was likely to come into effect in April 2025, without citing sources.
Around 25 per cent of England’s local councils have already agreed to the move, according to The Telegraph, including those in holiday hot spots such as Devon, Cornwall, the Lake District and Norfolk. Taxes from those councils alone could bring in around 200 million pounds ($257 million) in annual revenues, the paper said.
Revenues from higher taxes on second homes could help the government to deliver on its pledge to build 1 million new homes in a country which has long faced a shortage of affordable housing stock. Housing is becoming a major national election issue, with a vote expected by early 2025. The opposition Labour party has also pledged tighter measures for second-home owners.
UK households owned around 809,000 second homes in 2021-2022, according to government figures.
The bill is part of a plan spearheaded by Michael Gove, the minister responsible for affordable housing, who has targeted second homes as a way to finance the building of more affordable accommodation. Housing associations have faced growing waiting lists for homes following cutbacks in government funding in the wake of the financial crisis.
