If you have a tiny violin handy, you might want to start playing it. This week marks a significant change for English councils as they now have the authority to double the council tax on second homes. Unsurprisingly, those who own holiday cottages are not happy. The Daily Telegraph has criticized this move as a “racket” and labeled it a “vindictive” and “socialist” attack on weekend home owners.
The Sunday version of the paper added more drama by sharing stories of families who inherited second homes and now face the prospect of paying extra thousands each year to maintain them. Meanwhile, in the Times, a retired barrister lamented the notion of giving up her coastal retreat in St Davids, expressing fears that such taxes would dismantle the generational fabric of communities. Her argument seemed to overlook the fact that empty houses during winter do little to foster thriving neighborhoods. To this, one might suggest reading the room—a skill likely honed by having multiple properties to choose from.
A cozy weekend spot by the sea is a dream many cherish. But it’s exactly that—a dream, a luxury, a mark of prosperity. Millions struggle to even own one home, let alone a second, so expressing outrage at paying a bit more for this luxury doesn’t resonate well. Especially when support for the disabled is viewed as an extravagance. It’s much like when city folk fled to their second homes just as the pandemic hit, finding little welcome from the local communities.
Tourist-dependent areas, such as the Cotswolds, the Lakes, or Cornish villages—with houses sporting key safes by the doors—are facing a shift towards a dystopian reality. A Devon survey highlighted some coastal towns where holiday homes comprise over three-quarters of properties. Such places are starting to resemble fragmented hotels more than traditional villages, leaving local workers increasingly disconnected from their roots.
This isn’t just about buying homes—it affects renters too. The rise of Airbnb has prompted landlords to switch from long-term renting to short-term lets, making rental properties rare. In north Norfolk, where one in ten properties serves as holiday homes, council spending on emergency accommodation for homeless families has soared more than fourfold in five years. No one is stopping people from owning a second home, but expecting them to pay more doesn’t seem unreasonable.
True, the second homes tax’s exact goal remains somewhat hazy. Is it meant to cool overheated markets or simply shore up financially-strapped councils? In Wales, heralded as a solution to housing shortages, results are still mixed. Local estate agents report a surplus of holiday homes that don’t meet local needs. Quaint fisherman’s cottages may charm for a holiday, but locals prefer practical homes with gardens and decent transport links.
Direct swaps from outsiders to locals aren’t the sole success measure. If funds raised are effectively used, like addressing homelessness—as Gwynedd in Wales intends with its increased tax—then the initiative serves broader purposes. Taxing second home owners, at worst, eases council budgets without directly impacting local constituents, as those paying are typically not locals.
In Hampshire, with its budget challenges for special education, and Dorset, grappling with social care costs, the additional revenue from second homes is more than welcome. Every little bit helps when local councils are financially strained. This isn’t about envy—it’s about common sense. Taxes are not just the price for living in a civilized society, but a step towards fairness. Time to put those violins away.
