Council Tax Premiums Survey

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South Derbyshire District Council seeks your views on possible exceptions to the Second Homes Premium so no additional charge would be payable.

A Second Home is a term used to describe a property which is unoccupied but furnished. Following a change in legislation in the Levelling-up and Regeneration Act 2023, Local Authorities are now allowed to increase the Council Tax on Second Homes. This is classified as a Premium and will be 100% additional Council Tax charge.

The government recognises that a significant prevalence of second homes can have impacts in some communities, particularly in areas where a significant proportion of the properties are not occupied all year round.

People have the right both to decide how to live and how to spend their capital; freedom of choice is hugely important in making significant decisions such as purchasing property. For example, second homes can provide flexibility to enable people to work in and contribute to the local community, whilst being able to return to a family home in another part of the country on a regular basis. However, as with all policies, there is always a balance to be struck, and there may be occasions where a disproportionate number of second homes can pose challenges for local areas.

1. In what capacity are you completing this survey in? *

I’m a property owner with second home
I’m a long-term empty property owner
I’m a resident living near second homes
I’m a local resident in South Derbyshire
I’m a representative of an organisation in South Derbyshire
Other (please specify):

2. Are you the owner of a second home in South Derbyshire on which Council Tax is charged. *

Yes
No

If yes, what is the reason for this second home?

3. Below is a list of the legally prescribed circumstances where Local Authorities are not able to apply a Premium Charge on Second Homes:

> Undergoing Probate

> Actively being Marketed For Sale or To Let

> Annexe

> Job Related

> Seasonal Homes

A Local Authority is given the power to apply discretionary exceptions which reflect the needs of the local area. This means that the premium wouldn’t apply in these situations and no additional charge would be payable.

Which Discretionary exceptions below would you support?

Above a business such as pub or shop – this is because for legal/licensing/insurance purposes it may not be occupied by anyone other than the owner/licensee or there is no separate entrance to the accommodation except through the business itself.
Holiday lets – since the rules have changed regarding self-catering accommodation and whether it is classed for business rates or not, there may be holiday lets that have to be categorised for Council Tax now as they are not rented out frequently enough to be classified for business purposes.
Work purposes – these are occupied either because they are owned by companies who use them as workers accommodation or someone is renting as they are working in this area but they have a main residence elsewhere
Live abroad – they live abroad and have a UK base so would not be ideal for renting out.
Other (please specify):

4. Please list any other scenarios where you think that a discretionary exception should be applied given consideration to the Empty Homes Strategy of making more properties available to the open market?