House of Commons · Ministers' Questions

Council Tax: Second Homes

Tuesday 1 February 2022 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

Tim Farron asked the Minister about discussions with Cabinet colleagues on increasing council tax for second homes.
The Minister mentioned closing a tax loophole for second home owners who claimed tax relief.
The Minister agreed to meet Tim Farron to discuss steps for supporting rural communities and ensuring second home owners pay the full rate of council tax.

Topics (select to filter)

Questions & Answers

Q1 Tim Farron Lib Dem Westmorland and Lonsdale

Local Government

Context

The question arises from the issue of discussions regarding potential merits of increasing council tax on second homes.

Question

What discussions has he had with Cabinet colleagues on the potential merits of increasing council tax on second homes?

Answer from Lucy Frazer

I am aware that the hon. Gentleman raised a similar question with the Chancellor when the Chancellor was a Local Government junior Minister. The hon. Gentleman will know that we announced in the middle of last month that we are closing a tax loophole that allowed owners of second homes who claimed that their often-empty properties were holiday lets to receive small business rates relief instead of paying council tax.

Partly answered

Not addressed: The specific ask about discussions on increasing council tax was not addressed.

How: Changing The Subject, Providing Background

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Q2 Tim Farron Lib Dem Westmorland and Lonsdale

Housing Agriculture & Rural Affairs

Context

The question stems from a worsening rural housing crisis post-pandemic, with high sales of second homes in Cumbria reducing private rented affordable market.

Question

Will the Minister agree—or will she agree to persuade her right hon. Friend the Chancellor—to meet me to look at seven steps for saving our rural communities and preventing towns and villages from being emptied of full-time populations?

Answer from Lucy Frazer

I am happy to meet the hon. Member to discuss the points he raises. We have taken a number of steps to ensure that people pay the full rate of council tax on second homes—96% of second home owners pay the full rate of council tax. He will know that the Government introduced the higher rate of stamp duty land tax for those purchasing additional properties, and only last year introduced a new SDLT surcharge of 2%, to ensure that houses are available for local people at reasonable prices.