Second homes council tax premium 2026: England, Wales and Scotland

Most councils in England now charge double council tax on second homes. Since 1 April 2025 they can add a premium of up to 100% on a furnished home that nobody lives in as their main residence. In Wales the premium can reach 300%, and in Scotland councils have been able to go above 100% since 1 April 2026.

Status at 17 September 2026. Council tax is set locally, so always check the current charge with the council where the property is.

England maximum

100%

Premium on second homes since 1 April 2025, so up to double the normal bill

Wales maximum

300%

Since 1 April 2023. 20 of 22 councils charge a second homes premium in 2026-27

Scotland

No fixed cap

100% was allowed from April 2024; councils can set higher premiums from 1 April 2026

English councils charging

71%

211 of 296 billing authorities in 2025, charging 170,000 homes (official statistics)

What is the second homes council tax premium?

It is an extra charge on top of normal council tax. For council tax purposes, a second home is a property that is substantially furnished but is not anyone's sole or main residence. That includes holiday homes you use yourself and weekday flats near work.

Councils decide whether to charge it and at what level, up to the legal maximum. In England a council must decide at least one year before the premium starts, which is why some councils began in April 2025 and others later. Cherwell, for example, announced in December 2025 that its 100% premium is planned from April 2027.

Second home council tax rules in England, Wales and Scotland

Local rates in Wales vary widely. Gwynedd has charged a 150% second homes premium since April 2023 and kept it for 2026-27. Pembrokeshire went to 200% in April 2024, cut it to 150% in April 2025 and to 125% from April 2026.

Who is exempt from the second home premium in England?

Regulations made in 2024 set out classes of property where councils cannot charge the premium. You still pay normal council tax. The main exceptions are:

Wales has similar exceptions, including homes for sale or let (up to 12 months), annexes, job-related homes, pitches and moorings, and planning-restricted homes. Scotland's rules differ, so check with the council.

Do holiday lets pay the council tax premium?

It depends on how much the property is actually let. A holiday let that passes the business rates test is taken out of council tax and pays business rates instead, where small business rates relief may apply.

A holiday let that misses the test stays in council tax and is treated as a second home, so the premium can apply. The Welsh test of 182 days let a year is much harder for a seasonal let to reach.

We are not tax advisers and this is not tax advice. The council tax and business rates information on this page is a general summary based on the rules published at the time of writing, and we make no warranty about the tax you will pay. Speak to a qualified tax adviser or accountant about your own circumstances.

How much is council tax on a second home? A worked example

The premium is a percentage of the normal bill for that property. The example below uses £2,392, the average Band D bill in England for 2026-27, purely as an illustration. Your bill depends on your band and council.

Illustrative annual bill on a £2,392 Band D home

Same base bill, different premium levels

In this example a 100% premium adds £2,392 a year, about £199 a month, or roughly £12,000 over five years before any yearly rises.

What the premium means for you

Second-home buyers in England usually also pay the 5% stamp duty surcharge on additional homes, in place since 31 October 2024. Our holiday homes mortgage guide covers deposits, lender tests and the higher rates in Wales and Scotland.

We are not tax advisers and this is not tax advice. The stamp duty information is a general summary based on the rules published at the time of writing, and we make no warranty about the tax you will pay. Your solicitor or conveyancer will confirm the amount of stamp duty due. Speak to a qualified tax adviser or accountant about your own circumstances.

Has the premium changed local property markets?

The evidence so far is early and mixed, and prices in holiday areas are also shaped by mortgage rates and wider tax changes.

• England recorded 268,000 second homes for council tax in 2025, down 12,000 (4.3%) on 2024, according to official statistics published in November 2025.
• Wales projects 24,075 chargeable second homes for 2026-27, up 9.2% on the previous year, with Gwynedd the highest at 5,004 (Welsh Government, January 2026). Numbers can rise as holiday lets that miss the letting test move from business rates into council tax.
• Property data firm TwentyCI reported in December 2025 that homes in the St Ives postcode area (TR26) took 29% longer to sell in 2025 than in 2024.

Some Welsh councils, such as Pembrokeshire, have since cut their premiums after local debate.

What to do if you own or plan to buy a second home

1. Check the local chargeLook up the council's current premium and any planned changes. English councils must give a year's notice.
2. Check exceptions honestlyLook at planning conditions, job-related use, annexes or a genuine sale or let.
3. Decide how you will use itPersonal use, a long-term let or a holiday let each lead to different tax and mortgage routes.
4. Stress-test your budgetInclude the premium, both mortgages, insurance, bills and upkeep before you apply.

Mortgages on properties let to holidaymakers or tenants are often not regulated by the Financial Conduct Authority. Whether yours is regulated depends on your circumstances and the purpose of the loan.

Getting mortgage advice on a second home

A premium changes the numbers on a second home. The right lender depends on how you will use it and your wider income and commitments.

Quick Mortgages is whole-of-market with a panel of 110+ lenders, including specialist lenders, and there are no broker fees for our advice. We're based in Birmingham and help buyers across the UK. See our purchase, buy-to-let and specialist lending pages.

Speak to an adviser

Second home council tax FAQs

Do I pay council tax premium on a holiday let?

Only if it is in council tax. If it meets the business rates test (140 days available and 70 let in England or Scotland; 252 and 182 in Wales), it pays business rates instead. If it misses the test, it is usually treated as a second home and the premium can apply.

Can I avoid the second home premium?

Only if a genuine exception applies, such as a home actively for sale or let (up to 12 months), probate, an annexe, job-related accommodation, or a planning condition that stops it being lived in all year. Councils can ask for evidence and review your status. If you face hardship, you can ask your council about a discretionary reduction.

When did second homes council tax double in England?

From 1 April 2025, for councils that decided to charge it at least a year earlier. Others have started since or have announced later start dates.

Is a buy-to-let property a second home for council tax?

Not while a tenant lives there as their main home. Furnished and empty between tenancies, it can count, though the exception for homes marketed to let may apply for up to 12 months.

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Disclaimer:

This article is for general guidance purposes only and does not constitute legal, financial, or professional advice. Mortgage products and their terms can vary, and it is important to seek advice from a qualified, regulated professional who can assess your individual circumstances. Please ensure you consider your unique needs before making any financial decisions.

While every effort is made to ensure that the information provided on this blog is accurate and up-to-date, we do not guarantee its completeness or accuracy. The mortgage market can change rapidly, and the information on this blog may become outdated. We recommend verifying any information before acting on it and seeking tailored advice.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.