Council tax bills for second homes in Portsmouth set to double - and empty homes are also being targeted

Agreed ahead of the introduction of the new levelling up and regeneration bill, the proposal will allow the council to double bills for second homes and to charge empty homes left at an earlier point.

‘There’s potential to get up to £2m a year into the revenue budget and, looking at the financial situation, it feels like we need to do it,’ the council’s leader, Councillor Gerald Vernon-Jackson said at Tuesday’s (March 7) meeting.

‘What also strikes me is that we have 1,600 homes that are empty or second homes and we have more than 2,000 people on the housing waiting list. Houses should be used for those who need them.’

The bill under which these powers would be introduced will require councils to give 12 months’ notice before bringing them in with Tuesday’s decision, which will require full council sign-off next week, allowing the premiums to be introduced as soon as next year.

Under existing rules, the 1,300 second homes in Portsmouth are charged the same rate of council tax as people’s primary residences. The doubling of bills for these homes would bring in an extra £2m a year for the council.

Empty homes are already charged a premium, but only after two years and this would be extended to one year. It is estimated this change would raise an extra £450,000.

However, a cabinet report said the eventual total figure is likely to be lower with homeowners changing the use of their properties or selling them should the new charges come in.

‘The bill… allows councils to raise additional revenue and to acknowledge the impact that second and empty homes can have on some communities,’ it said. ‘In particular, in the case of empty properties, this may incentivise property owners to bring properties back into use.’

Similar proposals are also being considered by Isle of Wight Council.