Part of: UK Council Tax 2026 — Complete Guide to Bands, Discounts, Exemptions & Appeals → Council Tax on Second Homes — 2025-26 Premium Rules Explained
TL;DR: The 100% second-home Council Tax premium is available to English councils under the Levelling-up and Regeneration Act 2023, but adoption is discretionary. Most coastal and tourist authority areas have adopted it; many urban and industrial councils have not. Wales allows up to 300% premiums in all 22 councils. Scotland allows up to 100%. Always verify with the specific billing authority, as rates change annually.
Last reviewed: 27 April 2026
The 12-Month Notice Requirement and Adoption Timeline
Under section 80 of the Levelling-up and Regeneration Act 2023, English billing authorities wishing to apply the 100% second-home premium must give at least 12 months' advance public notice before the premium can take effect. This notice requirement was designed to prevent sudden financial shocks to second-home owners and to give the market time to adjust.
The practical consequence:
Wave 1 (April 2025): Councils that passed a resolution in early to mid-2024 - giving notice before April 2024 to implement from 1 April 2025 - formed the first wave of adopters. This included most coastal and tourist authority areas.
Wave 2 (April 2026): Councils that gave notice in 2024-25 could implement from April 2026. Some metropolitan councils and districts with lower second-home concentrations adopted in this wave.
Not yet adopted: Councils in major urban areas and northern industrial cities where second homes are rare relative to total stock may not have adopted or may have adopted at rates below 100%.
The MHCLG tracks premium adoption through its annual Council Tax statistics collection. The information is available in each council's published budget papers (typically approved at the February or March full council meeting).
English Councils That Have Adopted the Premium: Key Examples
Coastal councils in the South West: Cornwall Council was among the earliest adopters, with a 100% premium from April 2025. North Devon, South Devon (in various successor authority arrangements), Dorset Council, Isle of Wight Council, and councils along the Jurassic Coast adopted in Wave 1.
East coast and Norfolk/Suffolk: North Norfolk District Council, East Lindsey (Lincolnshire coast including Skegness), Suffolk Coastal area (now part of East Suffolk Council), and Great Yarmouth adopted the premium.
Lake District and Cumbria: Westmorland and Furness (the Lake District authority), Cumberland, and adjoining areas adopted, reflecting the very high second-home concentration in the Lake District National Park.
North Yorkshire coast: North Yorkshire Council (which now covers the former Scarborough Borough Council area including Whitby and Scarborough) adopted.
Northumberland coast: Northumberland County Council adopted, covering Bamburgh, Alnmouth, and the Northumberland coastline.
Peak District and rural Midlands: Some Peak District area councils adopted; others did not, reflecting the mixed second-home density.
English Councils That Have NOT Adopted the Premium: Key Examples
Inner London boroughs: The vast majority of inner London boroughs (Westminster, Camden, Hackney, Southwark, Lambeth, Tower Hamlets, etc.) have not adopted the second-home premium because second homes represent a very small proportion of their residential stock relative to the administrative overhead.
Northern industrial cities: Liverpool City Council, Sheffield City Council, and other northern metropolitan authorities with limited second-home stock have generally not adopted the premium as the financial impact would be minimal and the policy priority does not align with their housing context.
Major university cities: Some cities with large student populations but limited second-home stock have not adopted.
Note: Even in councils that have not adopted the premium, the standard Council Tax rate still applies to second homes. Owners pay the standard band charge (without a premium on top).
The Welsh Premium Landscape: All 22 Councils
All 22 Welsh billing authorities have set second-home premiums, though at varying levels. The Welsh Government's regulations under the Council Tax (Long-term Empty and Second Homes) (Wales) Regulations 2022 allow premiums up to 300%.
Highest premium Welsh councils (2026-27 illustrative):
- Gwynedd: Among the highest, typically 150% to 200% premium (meaning total bill is 250% to 300% of standard rate). Gwynedd has one of Wales's highest concentrations of second homes relative to local housing stock.
- Pembrokeshire: Typically 200% premium or higher, reflecting significant second-home pressure in the Pembrokeshire Coast National Park area.
- Ceredigion: High premium reflecting second-home pressure in west Wales.
- Anglesey (Isle of Anglesey): Typically 100% or above, reflecting pressure on a geographically contained island community.
Moderate premium Welsh councils:
- Carmarthenshire, Neath Port Talbot: Moderate premiums reflecting lower but still material second-home concentrations.
Lower premium Welsh councils:
- Cardiff, Newport, Swansea: Urban councils with different housing market dynamics have typically set lower premiums, reflecting a smaller second-home problem relative to their residential stock.
The Welsh Government's stated policy aim is for premium revenue to fund affordable housing. Each Welsh council publishes its premium rates in its annual budget papers, typically available on the council's website.
The Scottish Picture
Under the Council Tax (Variation for Unoccupied Dwellings) (Scotland) Regulations 2013, Scottish councils can charge up to 100% premium on second homes. Adoption across Scotland is uneven:
Highland Council: Adopted significant premiums reflecting the large number of second homes in the Highlands, including popular areas such as the Isle of Skye, Aviemore, and the north-west Highlands.
Argyll and Bute: Adopted premiums reflecting significant second-home pressure in coastal and island communities.
Na h-Eileanan Siar (Western Isles): Adopted premium reflecting the particularly acute housing pressure on island communities.
Edinburgh, Glasgow: Metropolitan councils with different dynamics have typically applied lower or no premiums.
How to Verify Your Specific Council's Premium Rate
The most reliable way to confirm whether your council has adopted the second-home premium, and at what rate, is to go directly to the council's budget papers. Every English billing authority publishes its full Council Tax-setting report (including any second-home premium resolutions) as part of its February or March full council meeting papers.
For English councils: Search "[council name] council tax 2026-27 budget" and look for the full council meeting papers from February or March 2026. The Council Tax resolution section will show whether a second-home premium has been adopted and at what percentage.
For Welsh councils: All 22 Welsh billing authorities have adopted premiums. Search "[council name] council tax premium 2026-27" for the current year's premium resolution.
For Scottish councils: Search "[council name] council tax variation empty dwellings 2026-27" for the relevant Scottish council's premium decision.
If you are uncertain which council is the billing authority for a property, go to gov.uk/find-local-council and enter the property's postcode.
The Impact on Second-Home Purchase Decisions
The 100% second-home premium fundamentally changes the carrying cost analysis for prospective second-home buyers. Before April 2025, a second home in a coastal English council area attracted the standard Council Tax rate. From April 2025, adopting councils doubled the charge.
For a Band D property in Cornwall at approximately £2,300/year standard rate, the premium-inclusive bill is approximately £4,600/year. Over a 10-year ownership period, the cumulative premium cost is approximately £23,000 additional Council Tax compared with the pre-premium position.
The IFG (Institute for Government) has noted that the premium's impact on second-home market activity is most visible in Wales, where higher premiums (up to 200% or 300%) have been in place longer. Data from Welsh councils shows increased second-home sale volumes in high-premium areas since the 2022 Welsh regulations took effect. England's 100% premium is more recent, and the market impact is still emerging.
The Impact on Second-Home Markets
The IFG (Institute for Government) has published analysis of the impact of second-home premiums on housing market dynamics. Key findings:
In Wales, where premiums have been in place longer and at higher levels, there is measurable evidence of second-home sale volumes increasing in some areas since 2022-23 premium increases - consistent with some owners choosing to sell rather than absorb the higher annual Council Tax costs. However, separating the Council Tax premium effect from other market factors (interest rate changes, UK housing market conditions, SDLT changes) is analytically complex.
In England, the premium has only been in force since April 2025 for most adopting councils, and the market impact is not yet fully measurable. The IFG and others will be tracking this over the coming years.
How to Find Your Council's Specific Rate
To find the second-home premium rate for a specific property:
1. Identify the billing authority (the district or unitary council responsible for the postcode).
2. Go to the council's website and search for "second home Council Tax" or "furnished dwellings premium."
3. Look for the most recent budget-setting papers (February or March 2025 and 2026) which will confirm the premium rate adopted.
4. Alternatively, call the council's revenues team directly.
The MHCLG's annual published statistics on premium adoption are another reference point, though they may not reflect the most recent year's resolutions.
The Council Tax Cost Comparison: Premium vs No Premium
Understanding the absolute financial difference the premium makes helps second-home owners plan. Using England's average Band D of approximately £2,280 for 2026-27:
| Scenario | Annual Council Tax | 5-Year Cost |
|---|---|---|
| No premium adopted (standard rate) | £2,280 | £11,400 |
| 100% premium adopted (doubled) | £4,560 | £22,800 |
| Welsh 200% premium | £6,840 | £34,200 |
| Welsh 300% premium | £9,120 | £45,600 |
For higher-banded properties in premium-adopting areas, the absolute cost is significantly higher. A Band G second home in a 100% premium coastal council (Band D approximately £2,300) faces: Band G standard rate £3,833, doubled to £7,667/year. Over 10 years: approximately £76,667 in Council Tax.
The MHCLG tracks the aggregate revenue generated by second-home and empty property premiums across England in its annual statistics, providing a measure of how materially the premiums are affecting council revenues.
Frequently Asked Questions
How do I know if my council has adopted the 100% premium?
Check your council's website, specifically the most recent budget papers or a dedicated Council Tax second homes page. Alternatively, call the revenues team. If your council has adopted the premium, your Council Tax bill should already reflect it if you declared the property as a second home.
My second home is in a council that hasn't adopted the premium - do I still pay Council Tax?
Yes. Even without the premium, the standard Council Tax rate applies from the first day of ownership. You pay the standard band charge. You are not exempt from Council Tax just because the premium hasn't been adopted.
My second home is in Wales - is the 300% premium definitely the maximum?
300% is the maximum the Welsh Government allows under the 2022 regulations. Individual Welsh councils set their own rate up to this maximum. You need to check specifically with the Welsh council where your property is located for the exact 2026-27 rate.
I'm buying a second home in 2026 - how do I know whether the area has adopted the premium?
Check the specific billing authority before exchange of contracts. The premium can significantly affect the ongoing carrying costs of second-home ownership. Ask the estate agent or solicitor to confirm the current Council Tax treatment for the property.
Has any English council reversed its decision to adopt the premium?
Premium adoption decisions are made through the council's annual budget process and are in principle reversible. As of early 2026, no major English council has reversed a prior adoption decision, though the market and revenue impacts are being monitored and future decisions could differ.
How we verified this
The second-home premium powers and 12-month notice requirement are from the Levelling-up and Regeneration Act 2023 (s80). The Welsh regulations are the Council Tax (Long-term Empty and Second Homes) (Wales) Regulations 2022. The Scottish regulations are the Council Tax (Variation for Unoccupied Dwellings) (Scotland) Regulations 2013. Council-specific adoption data is from published budget papers (individual councils' websites, available February-March annually). MHCLG tracks premium adoption through annual statistics. IFG analysis of second-home market impacts is from their published housing market research. IRRV provides professional guidance on premium administration.
Sources & Verification
- Levelling-up and Regeneration Act 2023 (s80 second home premium): https://www.legislation.gov.uk/ukpga/2023/55/section/80
- Council Tax (Long-term Empty and Second Homes) (Wales) Regulations 2022: https://www.legislation.gov.uk/wsi/2022/382/contents
- Council Tax (Variation for Unoccupied Dwellings) (Scotland) Regulations 2013: https://www.legislation.gov.uk/ssi/2013/45/contents
- Local Government Finance Act 1992: https://www.legislation.gov.uk/ukpga/1992/14/contents
- MHCLG Council Tax statistics: https://www.gov.uk/government/collections/council-tax-statistics
- Institute for Government housing analysis: https://www.instituteforgovernment.org.uk/
- IRRV (Institute of Revenues, Rating and Valuation): https://www.irrv.net/
- Welsh Government second homes policy: https://www.gov.wales/council-tax-second-homes
This article is for informational purposes only and does not constitute legal, financial, or tax advice. Council Tax rules vary by local authority and change annually. Always verify current rates and rules with your local council and gov.uk before making any decision.
