Council Raised Over £9.3m Through Second Homes Council Tax Premium Over Last 12 Months

Thousands of second homeowners across the Westmorland and Furness district have paid double council tax over the past year following the introduction of a 200% council tax charge on properties classed as second homes.

The Second Homes Council Tax Premium, introduced by Westmorland and Furness Council, effectively doubles the standard council tax bill for eligible properties and has generated an estimated additional £9.384 million in revenue during the last financial year.

Council figures show that, as council tax bills for 2025/26 were issued on 31 March 2025, a total of 5,563 properties across the district were registered as second homes and became liable for the premium charge.

The additional revenue forms part of the council’s core funding for local services, with the authority confirming that £5 million of the income generated during 2025/26 has been specifically allocated within the council’s approved budget for targeted spending priorities.

The council calculated the income using a Council Tax Base Value, also known as the Band D Equivalent, of 4,889.90 properties. This was multiplied by the 2025/26 Band D council tax rate of £1,918.97, resulting in the estimated £9.384 million raised through the premium.

The introduction of the premium was aimed at addressing the impact of high numbers of second homes on local housing availability and community sustainability, particularly in rural and tourism-heavy areas of Cumbria.

Supporters of the policy argue the additional income will help fund essential local services and housing initiatives, while critics say the higher charges place increased financial pressure on property owners and could impact tourism-related investment in the area.

When the council introduced the second homes premium Cllr Andrew Jarvis, cabinet member for Finance, said: ‘Housing is a huge local issue and one that we are prioritising. We want housing to be available for local people and we don’t want homes wasted, lying empty for years. The additional income we generate from these decisions will help fund work to tackle the housing challenges that we face in our area.’

The council also introduced a 200% premium for properties kept empty for more than five years, and even higher charges for properties kept empty for more than 10 years.