New law could see UK second home owners council tax double

Those who own properties across Bath and North East Somerset could notice their council bills jump up as councillors decide this week whether to increase council tax for second home owners following a change of law that gives councils more power.

The cost of council tax could double for those who own a second home in the area although the increased tax will be specific for registered 'long-term empty' homes.

There are around 858 homes in Bath and North East Somerset that would be impacted if the tax increase was to go ahead, it would give the council a cash boost of £1.84million per year.

The vote comes after the Levelling-Up and Regeneration Act was introduced last month which gives councils the authority to increase tax by 100% on homes that are only sometimes occupied.

A report currently being considered states: “The recommendations in the report will either incentivise owners of second homes to sell them, thus returning them to local housing stock or increase contributions to the council and help fund vital services.”

It has become increasingly popular for UK citizens to buy a second home in beautiful parts of the country, however, this can cause trouble in the property market as it leaves a limited number of properties for those wanting to live there.

The report added this has a "negative impact" and "local residents [are] being pushed out of the housing market" and that the "long-term empty" homes applies to those that have not been occupied for between two and five years. Those home owners could be hit with a 100% council tax premium.

Homeowners who have properties that have been left empty longer could be charged even more under the new law..

Councillors are due to decide if the council tax change will go ahead in a vote on Thursday, November 30th.

This comes as potential buyers were given a blow if looking for a bungalow - The number of new bungalows built in the last year dropped by a huge 70% and just 226 new bungalows were registered to be built between July and September this year.

So what do you think of the new law? Let Money Moo know in the comments below.