Owners of second homes in Southend have contributed almost £1mn in extra council tax since April, following the introduction of a premium charge aimed at boosting services.
Southend Council began applying a 100% council tax premium on second homes from 1 April, meaning owners now pay double the standard rate. The move mirrors similar policies adopted by many English councils under new government legislation.
Holiday homes on Essex coast
The city currently has 477 properties classified as second homes subject to the premium. So far this financial year, the council has billed £940,439 in additional charges.
Paul Collins, councillor for finance, assets and investments, said the income is making a tangible difference. He said: “Council tax on second homes ensures that everyone contributes fairly to the services we all rely on. The additional income from the premium is being used to support vital local services that benefit residents every day, from keeping our streets safe and clean to maintaining parks, libraries and community facilities.
“It helps us invest in the city and ensure Southend remains a great place to live for those who call it home.”
Exemptions
Not all second homes attract the premium. Properties marketed for sale or let, annexes and homes forming part of a wider estate can claim a 12-month grace period before charges apply. Other exemptions include job-related accommodation, probate cases, and homes restricted by planning conditions.
The premium is part of a wider effort to tackle housing pressures and ensure fairness in council tax contributions. Across England, councils can charge up to double the standard rate on furnished second homes that are not a person’s main residence. Most authorities introduced the 100% premium from April 2025.
Holiday lets may be exempt from council tax if they meet business rate criteria, including being available to let for at least 140 nights a year and actually let for 70 nights.
Southend Council says the revenue will help fund essential services at a time of rising costs and growing demand, while encouraging better use of housing stock in the city.
Norfolk owners complain
Elsewhere in East Anglia, some second home owners have taken a Norfolk council to tribunal over paying double council tax. North Norfolk District Council (NNDC) has received six formal complaints since the second home policy was introduced in April, with some citing frustrations over its exemption policies.
Before the launch of the new premium, a flurry of coastal homes were put on the market in places such as Wells-next-the-Sea, perhaps in an effort to avoid the new fees. Under the rules, property owners do not have to pay the higher rate for a 12-month period while homes are up for sale.
However, NNDC says this exemption period begins when the home is first marketed for sale, not from when the new charges were introduced last year. The policy sparked a row with second home owners who complained it should have started when the new fees came into force.
Tribunal
It led to a valuation tribunal – the first of its kind faced by councils in England – which ruled in favour of NNDC. It means people who put up their properties for sale before the changes came in will have started paying council tax sooner after the 12-month period ends.
Second home owners must also prove they are actively attempting to sell the home and that it is not just a tactic being deployed to avoid paying the rate.
Advance warning
The Local Government Ombudsman was also called in to rule on a separate complaint from second home owners about not being given enough advance warning of the changes.
A man who lives outside the area argued NNDC failed to give enough advanced warning about the changes and called for the fees to be waived for 2025. But the Ombudsman was quick to dismiss the complaint and found after an initial investigation that there was “insufficient evidence” of wrongdoing. NNDC said it had advertised the changes in the press and had issued statements on its website, adding that it was also a much-publicised national issue.
Policy to continue
The measure has been widely adopted across East Anglian councils which can use the revenue generated for various services. The income is not ring-fenced for specific purposes, allowing flexibility to use it to address local issues, including housing shortages.
Several councils in Norfolk have stated that “25% of the extra money they receive in 2025/26 will go to the district councils to support affordable housing and homelessness services.”
Cabinet members at North Norfolk District Council have voted for the 100% premium to continue into next year, affecting about 3,700 second homes.
The government says, “It is unclear whether the second homes premium will reduce the number of second homes.”
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