Second homes and holiday homes

Second homes are properties that are furnished but not occupied as anyone's main home. No discount is awarded.

A property let furnished by a landlord is classed a second home when it is unoccupied.

The Levelling up and Regeneration Act 2023 made changes to the empty property premium and introduced a new premium for second homes.

This change allows:

  • a premium charge of 100% to be charged to properties which have been unoccupied and unfurnished for over one year
  • a premium charge of 100% to be charged to properties which are second homes. This means furnished properties which are not the main residence of any person

At a full council meeting on 23 February 2024 the council made the decision to adopt both the 100% premium payable after one year instead of two for council tax relating to unoccupied and unfurnished properties and the 100% premium for second home properties from 1 April 2025.

Exceptions to the premium charge

There are some exceptions to the second home premium. If your property meets the criteria, from 1 April 2025 you will be able to make an application for your property to be considered for one of the exceptions.  Evidence will need to be provided at that point demonstrate that the eligibility criteria has been met.

Second home premium exceptions

Exception Class

Exception may apply to

Exception definition

Class E

Long-term empty and second homes premium

Dwelling which is or would be someone’s sole or main residence if they were not residing in job-related armed forces accommodation

Class F

Long-term empty and second homes premium

Annexes forming part of, or being treated as part of, the main dwelling

Class G

Long-term empty and second homes premium

Dwellings being actively marketed for sale (12 months limit)

Class H

Long-term empty and second homes premium

Dwellings being actively marketed for let (12 months limit)

Class I

Long-term empty and second homes premium

Unoccupied dwellings which fell within exempt Class F and where probate has recently been granted (12 months from grant of probate/letters of administration)

Class J

Second homes premium only

Job-related dwellings where a person must live for the purpose of performing their work

Class K

Second homes premium only

Occupied caravan pitches and boat moorings.

Class L

Second homes premium only

Seasonal homes where year-round, permanent occupation is prohibited, specified for use as holiday accommodation or planning condition preventing occupancy for more than 28 days continuously

Class M

Long-term empty premium only

Empty dwellings that need or are undergoing major repairs or structural alterations (12 months limit)

In Cheltenham we award a 25 per cent discount for properties requiring or undergoing major repairs or structural alterations This exception has primarily been created for local authorities that do not offer a Major Repairs Discount.

In all cases eligibility for the above exceptions will be assessed in line with the guidance issued by government and supporting evidence provided by the council tax payer. An exception will not be granted where sufficient information is not provided to demonstrate that the eligibility criteria has been met.

Find out more about the second home premium and exceptions on GOV.UK.