Council Tax Premium on Second homes and empty houses in Dorset

Dorset Councillors have approved proposals for a council tax premium on second homes and an amendment to agree an earlier commencement date for the existing Long Term Empty Homes premium, under the new flexibilities for councils provided in the Levelling Up and Regeneration Bill, which received Royal Assent in October 2023.

For those properties classified as Long-Term Empty and Unoccupied a 100% premium will, from 1 April 2024, be applied after one year rather than the existing 2 years.

The introduction of the 100% council tax premium on second homes will come into effect on 1 April 2025, making a total council tax charge of 200%. Unlike empty dwellings, there is no requirement for a property to have been used as a second home for a fixed period of time before the premium can apply so it becomes chargeable from day one that a property is considered a second home (or dwelling periodically occupied).

Where exceptions are provided for in law and once final regulations have been provided, Dorset Council will adopt and apply such exceptions. The council website will be updated as soon as this information is available.       

Cllr Jill Haynes, Dorset Council Portfolio Holder for Corporate Development and Transformation said:

“The proposal to introduce council tax premiums on second homes and empty properties has been discussed in Dorset for several years.

“Now that the government’s Levelling Up and Regeneration Bill has been passed and received Royal Assent, we will implement the changes and additional premiums in 2024 and 2025. 

“These new powers will provide much needed additional funds to help the council continue our track record of protecting vital frontline services on which Dorset residents rely.”

A motion was put forward by Cllr Nick Ireland, Leader of the Liberal Democrat group, which proposed 40% of the additional income should be used to support the provision of affordable housing in Dorset. Council agreed to this motion and it was approved.