It is understood the move will hit more than 500,000 people who own two properties from April 1, with around three quarters of councils opting to impose the maximum charge.
Data from Generation Rent shows Cornwall, Dorset and North Norfolk are the three areas with the most second homes. Kensington and Chelsea, Camden and Tower Hamlets in London all made the top 10.
Council tax rises for second homes will prove a big deterrent for many looking to buy one, or to expand their property portfolio.
One reason for the introduction, according to the Tories, was to deter properties from being left empty for long stretches and to reduce pressure on local house prices in popular tourist areas.
Read Next
square MONEYRead More
Stamp duty on second homes is set to increase from 3 per cent to 5 per cent on 1 April, for properties between £125,000 and £925,000 – adding more expense.
Mortgage rate increases
“If you already have a mortgage on your main residence, a lender will want to see clear proof that you can comfortably afford repayments on a second one – and that’s before considering any existing debt, dependants, or rising interest rates.
He added that if you are thinking about letting the property out, either occasionally as a holiday rental or more permanently as a buy-to-let, the mortgage options often require specific products with different terms and stricter lending criteria.
Societal impact
There is increasing scrutiny around the social impact of second homes – especially in rural or coastal areas where locals are struggling to get on the ladder. This has led to growing regulation and, in some places, planning restrictions that make it harder to convert properties into holiday lets or Airbnbs.
What if I’m thinking of buying a second home?Mr Mendes said: “Having a strong deposit saved, minimising existing debts, and improving your credit profile can go a long way when it comes to securing a decent mortgage deal. It also helps to be clear about how you plan to use the property and choose the right type of mortgage from the outset, whether that’s residential, buy-to-let, or holiday let.
It’s not just the mortgage – you’ll need to budget for higher council tax, maintenance costs, insurance, and the additional stamp duty. Factor in those extra costs early on so there are no surprises later.
Think long-term
Lenders will look closely at your income, outgoings, credit score, and any existing mortgage obligations. The cleaner and more organised your finances are, the smoother the process.
Choose your location carefully
Consider how much time you’ll spend there
If the property will sit empty for long stretches, it might be worth exploring managed lettings or part-time rental options to offset costs – though you’ll need the right mortgage and permissions in place.
Read More Details
Finally We wish PressBee provided you with enough information of ( All the ways it’s become impossible to own two homes )
Also on site :