Introduction Of Second Homes Premium – What You Need To Know

Wednesday, 12 March 2025 10:14

By Dominic Kureen @WriteOnDom

From 1 April 2025, any property which is classed as a furnished second home will be charged a premium of 100 per cent council tax.

This change comes after the Isle of Wight Council adopted powers set within legislation in February 2024 that permits councils across the UK to establish their own policies regarding empty properties and second homes.

However, central government has announced some exceptions where a second home premium may not apply, for example if a property is:

A place where someone in the armed forces would live if they were not in job-related accommodation.

Part of another home, like an annexe.

For sale or rent and has been on the market for less than a year.

Needed for someone’s job.

A caravan or boat.

Subject to planning restrictions affecting its use.

Councillor Ian Stephens, deputy leader of the council and Cabinet member for housing and finance said:

“Recent years have seen an increase in second home/holiday home ownership and a rise on ‘staycations' and short-term lets. These factors have reduced the availability of housing on the Island.

“Second home ownership across the Island is significant and is recognised to have a negative impact in terms of the supply of homes available to meet local housing needs.

“Initial analysis shows that the application of a 100 per cent premium on second homes could generate additional council tax revenue in excess of £5million which will support the delivery of services for all Islanders.”

To find out more information about the second homes premium, exceptions and to fill out an exception form, please visit: www.iow.gov.uk/premiums.

You will need to complete an Empty Property and Second Home Review Form to tell us the details and supply the evidence asked for on the form. Physical forms can also be downloaded from the webpage.