‘Second homes raid is taxation without representation – it can’t be legal’

Second home owners stung by the double council tax raid could challenge the new law in court, lawyers have said.

Many Telegraph readers were “blindsided” by increased council tax bills landing on their doorsteps after local authorities were given the power to add a 100pc premium on second home owners from April 1.

But legal experts and campaigners said “serious question marks” loom over how councils interpreted Government-issued guidance – meaning some could be forced to reverse the charges.

The Telegraph is campaigning to abolish the second home council tax raid after readers told us:

• The policy amounted to “taxation without representation” as they have no right to vote in their local elections.
• They were not consulted on the changes or given any notice beyond an advert in the local paper.
• They are effectively being billed twice for services that they do not use.

Jenny Wigley KC, of Landmark Chambers, said: “Depending on the circumstances, what the council did, the reasons it set out and what they took into account before implementing the premium could be scope for judicial review.

“While the cost might be prohibitive, if a few owners club together it might be a viable option to challenge it in the court.”

Prior to a law change in 2013, second home owners in England were given a 10pc discount on their council tax bills. The deduction was based on the premise they use council services less than somebody whose main home is in the region.

But in recent decades, concerns have grown that second home owners push up house prices and block first-time buyers from getting on the property ladder.

In 2023, the then-Conservative government brought in the Levelling Up and Regeneration Act which gave councils the power to add a 100pc premium to the tax bill of second home owners. Over two thirds have since taken advantage of the policy, which came into effect on April 1.

‘A neighbour thought the bill was a scam’

Royston Davis, a retired lawyer, accused his local authority of “breaching its duty of care” after he was slapped with a double council tax bill.

The 57-year-old lives in Aylesford, Kent, with his wife, Alison. They have a second home in Broadstairs, a seaside town they have known and loved since childhood. His council tax bill on the Broadstairs home has now doubled to £313 a month.

He only knew the change was coming after chancing upon a “tiny” clipping in the local paper – but added many of his fellow second home owners did not know about it.

He said: “One friend thought the council tax bill was a scam because he had no idea the change was coming.

“But there was no communication whatsoever with local communities, local businesses or second home owners. This must be unlawful.”

Other second home owners have pointed out the premium is especially unfair, as they have no representation in local politics.

‘I have no right to vote, but they can spend my money’

One Telegraph reader said: “The most annoying part of the legislation is that I have no right to vote in local elections to influence where the council spends my taxes. Essentially this amounts to a situation of taxation without representation.”

Under the Levelling Up and Regeneration Act, councils were told they “must make its first determination to charge a second homes premium at least one year before”, and ensure owners have “sufficient notice” to make any changes.

Controversially, the legislation deemed “at least one” local newspaper advertisement enough notice. This is despite the fact many second home owners do not live permanently in the areas where their properties are, and so are unlikely to read the local newspaper regularly.

A footnote in the guidance also said a council’s failure to meet these criteria would not render the charge invalid.

Parminder Sidhu, property solicitor at Wedlake Bell, said: “There is a responsibility on councils to take reasonable steps to notify second home owners at least a year in advance and conduct proper impact assessments as well as carry out consultations.

“Failing to fully comply with the Levelling Up and Regeneration Act could leave councils facing legal challenges, scrutiny from oversight bodies, and potentially pressure to review their processes.

“Councils can expect to face judicial reviews, reputational damage, and potential reversals of the tax increase if found to have acted unlawfully.”

John O’Connell, chief executive of the TaxPayers’ Alliance, said: “Serious question marks loom over how well councils communicated the recent changes to rates on second homes.

“Households in every corner of the country are now being hit with devastating hikes on their bills, and anecdotal evidence is suggesting that many were completely unaware of the measures.”

A Ministry for Housing, Communities and Local Government spokesman said: “We are clear that local authorities must give residents appropriate notice before introducing this.”

Thanet Council and the Local Government Association were also contacted for comment.