Second-home council tax premium raises more than £11m across Westmorland and Furness
Westmorland and Furness Council has raised more than £11 million after doubling council tax bills for many second-home owners.
The authority introduced a 100% council tax premium on furnished properties that are not used as anyone’s main home.
The change came into force on April 1, 2025. It means affected owners now pay 200% of the normal council tax charge for their property.
Thousands of second homes affected
Westmorland and Furness has one of the highest concentrations of second homes in England.
Many are found in popular Lake District communities, including Windermere, Ambleside, Coniston, Grasmere and Hawkshead.
Second homes are classed as furnished properties that are not used as the owner or tenant’s sole or main residence. These homes are automatically charged the additional premium unless an exception applies.
The extra charge applies across the whole Westmorland and Furness Council area. This includes South Lakeland, Eden and Barrow, rather than only homes inside the Lake District.
Why was the premium introduced?
The council said the policy was introduced as part of its response to the local housing crisis.
In some tourist areas, high demand for holiday properties and second homes has reduced the number of houses available to permanent residents.
Supporters of the premium hope the higher bills will encourage some owners to sell or rent their properties to people who live locally.
When the proposal was put to a public consultation, 74.5% of the 600 respondents supported doubling council tax on second homes. Around 21% opposed the plan.
Supporters said second homes can weaken local communities and reduce the supply of housing. Some also argued that the money raised should be invested in affordable homes.
Those against the policy warned that second-home owners support local tourism businesses and use fewer council services than permanent residents.
How will the money be spent?
Council tax income is generally used to fund services provided by the local authority.
These can include adult and children’s social care, roads, waste collections, libraries and support for local communities.
The council previously pledged to use £5 million from the second-home premium to support local priorities and help address housing pressures.
However, the full amount raised is not automatically ring-fenced for building new affordable homes.
This means some of the additional income can help fund the council’s wider budget and protect existing services.
Some properties are exempt
Not every second home has to pay the additional charge.
National rules provide temporary or permanent exceptions in certain circumstances. These can include properties being actively marketed for sale or rent, homes undergoing major repairs and some inherited properties.
Westmorland and Furness Council has also introduced local discretionary exceptions.
Owners must contact the authority and provide evidence when applying. Simply using a property as a holiday home or planning to turn it into a holiday let does not automatically remove the premium.
Could the policy change the housing market?
It remains unclear how much the premium will reduce the number of second homes.
Some owners may place their properties on the market because of the higher annual cost. Others may continue paying the doubled bill or seek to operate their property as a commercial holiday let.
Even when second homes are sold, they may remain too expensive for many local workers and first-time buyers.
The council will therefore face pressure to show how the millions raised are being used and whether the policy leads to more homes becoming available for permanent residents.
