Westmorland and Furness Council’s decision to charge a 100% premium on council tax for second homes brought in an extra £11.05 million in the 2025/26 financial year, but estate agents have raised doubts about whether the policy is achieving its wider aim of increasing housing availability for local residents.
Money raised does not equate to houses returned
Introduced by the council to discourage second‑home ownership and bolster community investment, the premium has produced a significant revenue boost. However, local estate agents say the headline figure alone does not demonstrate whether more properties have become permanent homes for local people.
"The reported £11 million in additional income is clearly significant, but it represents only one part of the equation and does not, on its own, demonstrate that the policy has achieved its wider objectives," said Simon Leigh of Hackney & Leigh Estate Agents.
Leigh told The Gazette that assessing the policy’s success requires data on whether second homes have been sold, converted into permanent residences, or reclassified into the holiday‑letting sector. He warned that some owners may avoid the premium by placing properties on short‑term holiday lets and potentially qualifying for business rates relief.
Local consequences and unanswered questions
Estate agents say the central concern is whether the premium reduces the number of homes available for year‑round residents, or simply shifts properties into the holiday accommodation market. If the latter occurs, it could alter the local housing mix without delivering the policy’s intended social benefits.
- Policy: 100% council tax premium on second homes.
- Revenue: £11.05m additional income in 2025/26.
- Concerns: Possible increase in holiday lets and limited evidence of homes returning to permanent occupancy.
The debate underlines the difficulty councils face when using fiscal measures to influence housing supply and community composition. Officials need data not only on receipts but on housing outcomes: numbers sold, moved into permanent occupation, or reclassified for holiday use.
| Measure | 2025/26 |
|---|---|
| Council tax premium rate | 100% |
| Additional income | £11.05 million |
For residents and prospective buyers, the immediate practical implication is that owning a second home in the area now carries a much higher tax burden. For policymakers, the priority will be to publish or collect evidence showing whether the premium has translated into more long‑term homes for local people or merely altered how properties are used and classified.
Further reporting will be needed to track sales figures, changes in occupancy and any shifts in business‑rate claims that might undermine the policy’s aims.
