Since 2013, councils in England have had the power to charge additional council tax on second homes. For the purpose of council tax, second homes are dwellings which are substantially furnished but have no resident (i.e. it is not someone's sole or main residence). Since 1 April 2013 Stratford-on-Avon District Council removed the discount entirely from second homes.
From April 2025, councils will be able to use new powers to charge a premium of up to 100% additional council tax on second homes in their area, or parts of their area. The powers to charge second homes premium is discretionary, and it is for councils to decide whether to charge the premiums in their local area and at what rate, up to the 100% maximum.
Sections 11B and 11C of the Local Government Finance Act 1992 enables councils in England to disapply the section 11(2)(a) discount which may otherwise apply to second homes and apply additional council tax (commonly called a premium). The 1992 Act was amended through the Levelling-up and Regeneration Act 2023 which also introduced new powers for councils to charge premiums on second homes from 1 April 2025. Following the introduction of this provision to charge a premium, the Council's funding has been reduced accordingly.
A council must make its first determination to charge a second homes premium at least 1 year before the financial year to which it will apply. This is to provide owners of these dwellings sufficient notice to make any appropriate changes. It is also expected that Councils should consider how it might engage and consult with key stakeholders, including the local electorate and second homeowners, before taking a decision to charge a premium.
Proposal:
Stratford-on-Avon District Council has removed all discounts for second homes and charges 100% Council Tax on such properties, this has been the case since 1 April 2013.
The Council has a high number of second homes (859 dwellings, which is over 1% of the entire housing stock) in the district and the decision to remove the second home was taken to increase the cost of ownership, with the anticipated result in more properties being made available for sale. This objective being directly in line with the then Council Strategy objective of “Addressing Local Housing Need".
The availability and affordability of housing in Stratford-on-Avon District Council remains a key issue. The current Council Plan includes a key objective in relation to Housing, which states “We will strive to deliver affordable well built and maintained homes". In delivering this objective the Council has also agreed that it will make the best decisions in the public interest.
In January 2025, the Council considered a proposal, subject to consultation, to implement a Council Tax premium of 100% across the whole of the district.
The proposal recognised that Stratford-on-Avon District Council is an area of high house prices, the average house price for the district in September 2024 (as per the Office for National Statistics) was £382,000, this compares to the average for the West Midlands of £257,000. It is anticipated within the proposal if the Council did choose to implement the Council Tax premium it may result in some of these properties being returned to the wider housing stock, therefore addressing this issue and meeting the Council Plan objective of providing affordable housing.
As the Council has the discretion to introduce a premium, the Government has reduced its funding to reflect this. If the Council chooses not to implement this premium, this results in reduced income in the Council's overall budget which funds the delivery of Council services and projects. This includes specific schemes such as supporting the delivery of housing in rural areas, and the purchase of housing to reduce the use of bed and breakfast accommodation for temporary housing.
The Council is now commencing the formal engagement exercise with second home owners and the wider public surrounding this proposal. You are invited to respond to the following questions on this matter here.
The consultation will run until Monday 2 February 2026.
It is anticipated that following the consultation a final decision on whether a Council Tax Premium of 100% should be implemented across the whole of Stratford on Avon District Council will be taken by the Council in February 2026 . If this is agreed, all those second home owners will be written to before 31 March 2026, with a view that the Council Tax Premium would be implemented on 1 April 2027.
