Higher tax rates for empty houses and second homes

The Forest of Dean District Council said the new charges would come into force from April 2025

A council is set to introduce higher tax rates for homes which have been unoccupied for more than a year as well as owners of a second home.

The Forest of Dean District Council voted to approve proposals to introduce the premiums at a council meeting and said the new charges would come into force from April 2025.

Empty homes in the Forest of Dean currently pay the full council rate for their band but will now be charged between double to four times that amount, depending on how long the building has been vacant.

Finance cabinet member Andy Moore said the changes were made possible due to a change in the law.

Tax premiums rise

For homes which have stood empty for between one to five years, owners will pay double the standard level on council tax.

Homes unoccupied for between five to 10 years will have to pay three times the standard charge.

And for owners of homes empty for at least 10 years will face a bill at four times the standard rate.

There are currently about 309 second homes in parts of the Forest of Dean district and they will also pay double the standard level of council tax.

The council said second home ownership is significant and is recognised to have a negative impact in terms of the supply of homes available to meet local housing needs.

Holiday lets unaffected

Mr Moore said the measures are expected to generate about £976,313 extra for council and police services.

However only about £90,000 would be retained by the Forest of Dean District Council with the rest going to Gloucestershire County Council and the Office for Police and Crime Commissioner.

Councillor Tim Gwilliam asked what effect the proposal would have on Airbnb and holiday lets in the Forest.

Officers said holiday lets would not be affected as they are subject to business rates.

They explained that if a second home is used as an Airbnb they will have to pay the premium.